Kiev - German Foreign Minister Frank-Walter Steinmeier on Wednesday warned of a new flare-up in the Russian-Ukrainian gas conflict, and possible reductions in energy supplies to Europe.

Berlin's top diplomat during a visit to the Ukrainian capital Kiev with Polish Foreign Minister Radoslaw Sidorski called for renewed efforts to head off an impending impasse.

"There are pressing interests to prevent another another gas supply conflict," Steinmeier said, in comments to reporters in the Ukrainian capital.

Disputes between Ukraine and Russia over natural gas pricing led to a total cut off of Russian gas sent into Ukraine in early January 2009. The blockade, which ended three weeks later, dramatically reduced supplies to Europe, which receives roughly one-quarter of its natural gas needs via Ukrainian pipelines.

Ukraine's cash-strapped government throughout 2009 has struggled to pay for Russian gas imports on time, provoking repeated Kremlin warnings to pay up or face another cut-off.

Ukraine's currently warring political parties should work "at the very least towards cooperation," in order to meet terms for further international financial aid needed to head off another (gas) conflict," Steinmeier said.

Ukraine's economy has suffered badly from the international financial crisis, with overall GDP on track to fall between 10 and 20 per cent during 2009.

Ukraine's government led by President Viktor Yushchenko, a supporter of market reforms, and Prime Minister Yulia Tymoshenko, are looking ahead to a presidential election in early 2010, and have been unwilling to hike state-controlled natural gas prices in the country, for fear of angering voters.

Germany and Poland in April kicked off an EU programme to assist Ukraine with its financial difficulties, to prevent a second Russian cut-off of gas supplies to Ukraine.

A gas rate hike to Ukrainian gas consumers, among other reforms, are among the conditions set by international loan organisations to Ukraine for further credit.

Steinmeier and Sidorski on Wednesday met with Yushchenko as well as former Prime Minister Viktor Yanukovich, the leader of Ukraine's opposition Regions Ukraine political party.

"We are together here in Ukraine, in order to at least make the attempt, to prevent another gas supply crisis. Whether that will be successful or not, we both can't yet say," Steinmeier said.

Gas reserves in Ukraine are, according to local media reports, some 30-40 per cent full. Were Russia to cut off gas supplies to Ukraine the downstream effect on Europe would be almost instantaneous, as Ukraine's reserves would barely cover Ukrainian gas needs, according to industry observers.

Steinmeier and Sidorski promised to work hard on obtaining for Ukraine further financial assistance, but during meetings with reporters in Kiev both said Ukraine must meet "political conditions."

Ukraine's creaky finances currently are heavily dependent on an ongoing International Monetary Fund (IMF) loan programme worth some 16.5 billion dollars, of which two of six tranches have been paid out.

For Ukraine to receive further tranches of the loan, the country must use the money in sectors designated by the IMF, particularly in paying the gas bill to Russia on time, and propping up Ukraine's wobbly banking sector.(dpa)