By Kylie MacLellan and Maxim (NASDAQ:MXIM) Rodionov
LONDON/MOSCOW (Reuters) - Europe needs to diversify its energy supplies, the head of NATO said on Sunday, as Britain warned it was "highly likely" that Russia, a major natural gas supplier, was looking to invade Ukraine.
Russia has massed some 120,000 troops near its neighbour and demanded the western defence alliance pull back troops and weapons from eastern Europe and bar Ukraine, a former Soviet state, from ever joining the Western defence alliance.
U.S. officials said on Saturday Russia's military buildup had been expanded https://www.reuters.com/news/picture/russian-buildup-at-ukraine-border-includ-idUSKBN2K20X6 to include supplies to treat casualties of any conflict. Across the border in Ukraine, locals trained as army reservists https://www.reuters.com/world/ukrainian-reservists-gear-up-case-conflict-with-russia-2022-01-29 as the government scrambled to prepare.
Moscow denies any plan to invade but said on Sunday it would ask NATO to clarify whether it intends to implement key security commitments after earlier saying the alliance's response to its demands did not go far enough.
"If they do not intend to do so, then they should explain why," Russian Foreign Minister Sergei Lavrov said on state television. "This will be a key question in determining our future proposals."
The United States has said it is waiting to hear back from Russia. It says NATO will not withdraw from eastern Europe or bar Ukraine but it is prepared to discuss topics such as arms control and confidence-building measures.
Washington has spent weeks trying to build agreement with European partners on a strong sanctions package https://www.reuters.com/markets/europe/how-financial-western-sanctions-might-target-russia-2022-01-19 if Russia attacks Ukraine. But the issue is divisive, with Germany urging "prudence". https://www.reuters.com/world/germany-urges-prudence-potential-sanctions-against-russia-over-ukraine-2022-01-23
The European Union depends on Russia for around a third of its gas supplies and any interruption https://www.reuters.com/business/energy/what-are-europes-options-case-russian-gas-disruption-2022-01-27 would exacerbate an existing energy crisis caused by a shortage.
"We are concerned about the energy situation in Europe because it demonstrates the vulnerability of being too dependent on one supplier of natural gas and that's the reason why NATO allies agree that we need to work and focus on diversification of supplies," NATO Secretary-General Jens Stoltenburg said.
SANCTIONS PLANS
Britain said on Sunday it would expand the scope of its own possible sanctions in legislation this week to deter Russian President Vladimir Putin.
"We think it's highly likely that he is looking to invade Ukraine. That is why we're doing all we can through deterrence and diplomacy, to urge him to desist," Foreign Secretary Liz Truss told BBC television.
Truss, who is due to visit both Ukraine and Russia in the next two weeks, told Sky News the legislation would enable Britain to hit a much wider variety of targets "so there can be nobody who thinks that they will be immune to those sanctions".
Asked if the new powers could include the ability to seize property in London, Truss said: "Nothing is off the table."
The Center for American Progress, a U.S. think tank, has Britain would face a challenge https://www.americanprogress.org/article/how-the-united-states-should-respond-if-russia-invades-ukraine uprooting wealthy Russians with Kremlin links from London given close ties "between Russian money and the United Kingdom’s ruling conservative party, the press, and its real estate and financial industry".
Asked about this, Truss said: "There's a real threat here to freedom and democracy in Europe. And that is more important than short term economic gains, both for the United Kingdom but also for our European allies."
The Biden administration plans to spare everyday Russians from the brunt of U.S. export controls if Russia invades Ukraine, and focus on targeting industrial sectors, a White House official said on Saturday. A top commerce official said earlier that "key people" would face "massive sanctions".
British Prime Minister Boris Johnson is expected to speak to Putin by phone next week. Stepping up diplomatic efforts after facing criticism for not doing enough, he said he had ordered the military to prepare to help strengthen Europe's borders.
Stoltenburg said NATO had no plans to deploy combat troops to non-NATO member Ukraine in the event of a Russian invasion, adding "We are focusing on providing support".
Johnson said on Sunday the picture on Ukraine's border with Russia was "increasingly concerning".
"I continue to urge Russia to engage in negotiations and avoid a reckless and catastrophic invasion," he said on Twitter (NYSE:TWTR).