Live Blog: Crisis In Ukraine (Archive)

By doubting the so-called Third Energy Package in the World Trade Organization (WTO) Russia undermines the basis of the EU-Russian working group formed in early 2014 on according issues related to the compliance of the South Stream project with the EU legislation, European Commission spokesperson Sabine Berger said on Tuesday.

Due to this the European Commission proposes to suspend the South Stream in the framework of its energy security strategy until it complies fully with the EU legislation and this project should be reconsidered amid energy security of the European Union, Berger said at a briefing in Brussels. The European Commission does not block South Stream but wants it to comply with the EU legislation, she said.

The same Russian agency quoted Gazprom CEO Aleksei Miller this morning as saying "no one can prohibit us from building South Stream, so construction will continue." Regulatory issues "appl[y] to the operation of the gas pipeline" not the construction, he added.

A portion of the planned pipeline runs through EU member states Bulgaria, Hungary, and Slovenia on its way to Italy.

U.S. President Barack Obama says the United States plans to bolster its military presence in Europe by sending in more troops and equipment.

At a joint news conference in Warsaw with Polish President Bronislaw Komorowski, Obama added that he was calling on the U.S. Congress to provide up to $1 billion to support the effort.

The move comes amid concern among NATO's Eastern European members in the wake of Russia's threatening moves in Ukraine.

Komorowski called the U.S. plans a "good answer" to Russia's actions.

Earlier on June 3, Obama said the U.S. commitment to the security of its allies in Central and Eastern Europe is "sacrosanct" and "a cornerstone of our own security."

The White House has said that the $1 billion European Reassurance Initiative, pending approval in the U.S. Congress, will rotate additional U.S. troops in the region and fund increased military exercises and training missions.

At his joint press conference with the Polish president, Obama also called on NATO members to increase their own defense spending to ensure the alliance's collective security.

He said the United States would "step up partnership" with countries such as Ukraine, Georgia, and Moldova.

Obama also called on Russia to use its influence with separatists in eastern Ukraine to make them lay down their weapons.

He said the United States wants good relations with Moscow and is "not interested in threatening Russia." But he also said Washington is prepared to increase sanctions if Russia continues its destabilizing actions in Ukraine.

He also said that rebuilding trust with Moscow will take "quite some time."

Obama called on Russian President Vladimir Putin to meet with Ukraine's President-elect Petro Poroshenko and recognize Ukraine's recent election as legitimate.

Obama is scheduled to meet for the first time with Poroshenko on June 4 in Warsaw.

Obama and Putin also could potentially meet later this week, when both plan to be in France for the 70th anniversary of the D-Day invasion that eventually led to the allied victory in World War II.

With reporting by Reuters, AP, and AFP

"Under no circumstances will Ukraine pay Russia $500 for 1,000 cubic meters of natural gas. There will be no discussion about it. It's not a market price -- it's a political price. There is no such price in Europe. If Russia considers Ukraine as its cash cow, then it is deeply mistaken."

"Russia cutting off its gas supply is still on agenda. It is absolutely clear that the Russian Federation will fight Ukraine with all means. And they will use gas as a weapon."

"If we do not reach an agreement, then, as I have already told the parliament, we will sue Gazprom at the Stockholm Court [of Arbitration]. The legal procedure will last for months and even years but we do not see any other way."