A visit by Russian president Vladimir Putin to Poland might have pleased Russia's gas industry, but it has threatened to leave Ukraine out in the cold.

Mr Putin and Polish president Aleksander Kwasniewski attempted to revive economic relations between two countries.

Poland is worried about its deficit, which had risen sevenfold during the last four years, in trade with Russia.

Russia meets 90% of Poland's needs for gas, and provides 75% of oil supplies.

Warsaw has expressed hopes of boosting bilateral trade, narrowing the deficit and minimising its dependence on Russian energy.

Russia, from its side, is believed to want to use Polish territory for the transit of its gas export.

New route

Western and Central Europe is the main market for Russian gas, the country's biggest export item.

Currently the main export route goes through Ukraine.

But Russian gas giant Gazprom has accused Ukraine of illegally siphoning gas from the pipeline passing through its territory.

The firm has proposed the construction of a new pipeline via Byelorussia and Poland, bypassing Ukraine.

Vladimir Putin adopted support for the alternative route as Russia's official position during a summit with the EU in 2000.

But until recently, Poland, wary of angering Ukraine, has dragged its heels over the plans, stating two years ago that it was "not interested" in the project.

Attitude changes

This attitude seems to be changing.

Poland's finance minister, Marek Belka, said earlier this week that the country fully supports the idea of building a natural gas pipeline via its territory to Western Europe.

He denied assertions that Poland supported the new pipeline proposal while insisting on keeping transit systems in Ukraine in operation.

"This is no longer a problem," he said.

Although no formal agreement on the pipeline was signed during Mr Putin's visit, Poland and Russia are reported ready to consider seriously the construction of the new pipeline.

According to Gazprom head Aleksey Miller, both sides agreed that the first part of the project of the Yamal-Western Europe gas pipeline would hit full capacity by the end of next year.

Ukraine loses

The move is likely to concern Kiev, which has remained unconvinced by assertions that the amount of gas flowing through Ukraine would remain unaffected.

Currently Ukraine, which has denied the gas theft allegations, enjoys transit payments and the luxury of being the transit corridor for 90% Russian gas export.

Former Ukrainian prime minister Viktor Yusheko said he regretted Russia's and Poland's decision to build a gas pipeline bypassing Ukraine.

Both countries "have failed to find advantages where they could have found them", he said.

Ukraine must hope that strengthening ties with Moscow, and a traditional suspicion among Polish citizens of Russian interests, will undermine the new pipeline plans, observers said.