Russian gas flow halted through Ukraine to Europe
Russia shut down all gas flows to Europe through Ukraine yesterday and told Kiev it would restore supplies only after it had signed a new contract at prices comparable to those paid by European countries. The row over gas prices and debts owed by...
Russia shut down all gas flows to Europe through Ukraine yesterday and told Kiev it would restore supplies only after it had signed a new contract at prices comparable to those paid by European countries. The row over gas prices and debts owed by Ukraine to Russia cut heating to tens of thousands of households in Bulgaria and hit supplies as far west as France and Germany as Europe faced freezing mid-winter temperatures.
"The price should be a market price based on a pricing formula," the Kremlin quoted Russian President Dmitry Medvedev as saying in a telephone conversation with Ukrainian President Viktor Yushchenko.
"There will be no discounts or preferences for Ukraine."
The Ukrainian state energy firm Naftogaz said its head Oleh Dubyna might meet the chief executive of the Russian gas monopoly Gazprom in Brussels today.
Kiev and Moscow blamed each other for the cut in supplies and the European Union said they should allow an EU monitoring mission to check how much gas was entering Ukraine from Russia.
"If this is agreed, nothing will stand in the way for transit supplies to be restored... That does not mean that success is 100 percent assured," Czech Prime Minister Mirek Topolanek said. The two sides will meet in Brussels today and the EU said they appeared willing to accept monitors. Russian gas export monopoly Gazprom said it had fully suspended supplies of transit gas towards Ukraine on Wednesday after accusing Kiev of keeping it. Gazprom said it was increasing supplies to the European Union and Turkey via other routes. Despite those measures, the dispute cut Russia's supplies to Europe - which depends on Moscow for a quarter of its gas supplies - by half.
The reduction in supplies started on January 1 when Russia reduced gas volumes to Ukraine, and has been sharper and more prolonged than a similar disruption in January 2006.
Ukraine's pro-Western President Viktor Yushchenko appealed to the European Union to use all efforts to help end the crisis, which has further dented investor confidence in his country. Moscow bitterly opposes Mr Yushchenko's efforts to join Nato.