Ukraine gas row complicates as Russia toughens position

KIEV, Jan. 4 (Chinese media) -- Russia on Sunday raised the

price of natural gas it asked Ukraine to pay, intensifying the gas dispute which

has reduced supplies to several European countries.

Russia's state-controlled gas company Gazprom said

the company wanted 450 U.S. dollars per 1,000 cubic meters, 32 dollars more than

its last offer.

The arrow of a pressure gauge points to

zero at a Ukrainian gas compressor station in the village of Boyarka near

the capital Kiev Jan. 3, 2009. (Chinese media/Reuters Photo)
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Gallery

Ukraine,

however, accused Gazprom of deliberately reducing gas flows to customers in

Europe, saying any price hike should be accompanied by a similar increase in the

Russian pay to Ukraine for transferring gas through its pipelines on to European

customers.

"We consider the actions of Gazprom as threatening

the energy security of Ukraine and Europe, which could bring unpredictable

consequences for the entire gas transit system of Europe," Ukraine's state

energy company Naftogaz said in a statement.

"Naftogaz urges Gazprom to stop technical

manipulation of volumes and gas supply routes, synchronize the work of the gas

distribution systems of Russia, Ukraine and Europe and resume talks," it added.

Poland, Hungary, Romania, Bulgaria and Turkey have

reported drops in supplies after Russia's state gas monopoly Gazprom cut off

supplies to Ukraine last Thursday because of delays in payment for gas supplied

in November and December and a demand for more than half a billion dollars in

late-payment fines.

European countries currently pay about 500 U.S.

dollars per 1,000 cubic meters, including transit costs, but the price is

expected to decline significantly as the gas market begins to reflect the fall

in world oil prices.

Russia and Ukraine The two sides failed to reach

compromise over a new price and gas transit fees for a 2009 contract.

The negotiations were hampered by strained ties

between Russia and Ukraine due to the latter's bid to join NATO and its support

for Georgia during its war with Russia in August.

On Friday, Gazprom accused Ukraine of "stealing" gas

in transit. Ukrainian officials denied the accusation, saying that Russia is not

delivering the due quantities to European clients.

Around a quarter of the gas used in the European

Union -- more than 40 percent of the bloc's imports -- comes from Russia, and

Ukraine sits on the main transit route for gas exports, accounting for 80

percent of the continent's gas supply from Russia.

Both Russia and Ukraine have been soliciting support

from EU nations.

European Commission spokesman Ferran Tarradellas said

that the European Union had no plans to get involved in a dispute he described

as a "bilateral problem."

European Union ambassadors are scheduled to hold an

emergency meeting in Brussels Monday, where the Czech Republic, which holds the

27-nation EU's presidency, will brief members about talks it had been holding

with officials from Moscow and Kiev.

In 2006, a dispute over gas prices between Kiev and

Moscow sent jitters among European customers after Gazprom cut all gas supplies

to Ukraine.

Experts say that as EU states and Ukraine itself now

have sufficient gas reserves, they are capable of coping with the lack of fresh

Russian supplies.

Ukraine accuses Russia of reducing

Europe's gas supplies

KIEV, Jan. 4 (Chinese media) -- Ukraine accused Russia on

Sunday of deliberately reducing gas flows to customers in Europe.

"We consider the actions of Gazprom as threatening

the energy security of Ukraine and Europe, which could bring unpredictable

consequences for the entire gas transit system of Europe," Ukraine's state

energy company Naftogaz said in a statement. Full story

Economic, political wrestling behind

Russia-Ukraine gas row

Russian gas export monopoly Gazprom's

headquarters is seen in Moscow, Jan. 3, 2009. (Chinese media/Reuters

Photo)
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Gallery

BEIJING, Jan. 3 (Chinese media) -- Russia's suspension of gas supplies to Ukraine has

entered the third day with no settlement in sight. Some European countries have

begun to be affected by a gas shortfall.

On Friday, Russia's state gas monopoly Gazprom accused

Ukraine of "stealing" gas in transit. Ukrainian officials denied the accusation,

saying that they are withdrawing only enough gas to operate pumping stations

serving the pipelines.

Ukraine warns EU of serious gas

shortfall in near future



KIEV, Jan. 3 (Chinese media) -- Ukraine warned on Saturday the European Union (EU) that

the bloc could face serious gas shortfall in around 10 days if the gas row

between Russia and Ukraine is not resolved.

"If the Russian side does not provide more gas (to EU

member states) than at the moment, then in around 10 days there could be very

serious technical problems," President Viktor Yushchenko's representative on

energy security Bogdan Sokolovski told a news conference.

Romania's gas supply not to be

affected by dispute between Ukraine, Russia:

FM

BUCHAREST, Jan. 3

(Chinese media) -- Romania's supply with gas imported from Russia will not be affected

by the problem existing between Kiev and Moscow, Romanian Foreign Minister

Cristian Diaconescu told his Ukrainian counterpart Volodymyr Ogryzko in a

telephone conversation on Saturday.

According to a press release issued by the Romanian

Foreign Ministry, Ogryzko assured Diaconescu that Romania would have to bear no

consequences following this situation. He said he wanted Romania's support for a

European mission to come to Kiev in order to evaluate the problem of gas supply.



Russian gas supply to Bulgaria

reduces

SOFIA, Jan. 3

(Chinese media) -- The CEO of Bulgarian gas supplier "Bulgargaz" Dimiter Gogov said

Russian natural gas supply to Bulgaria went down Saturday but has not yet

reached a critical low point, according to local press report.

"The pressure in the pipe has gone down and since Saturday

morning we receive lower quantities of natural gas," Gogov said.

EU calls for immediate resumption of

gas deliveries

BRUSSELS, Jan. 2

(Chinese media) -- The European Union (EU) called on Friday for immediate resumption of

full deliveries of gas to its member states after Hungary and Poland suffered

reduced supplies due to Russia's dispute with Ukraine.

"The European Union calls for an urgent solution to the

commercial dispute on gas supplies from the Russian Federation to Ukraine and

for an immediate resumption of full deliveries of gas to the EU member states,"

the Czech government, which assumed the EU presidency in the new year, said in a

statement.

Ukrainian president: Gas dispute with

Russia will be settled soon

KIEV,

Jan. 1 (Chinese media) -- Gas dispute with Russia will be settled by Jan.7, Ukrainian

President Viktor Yushchenko said in a statement Thursday.



"I think that we are close to a compromise and I ask

the Russian president, the Russian prime minister and Ukrainian negotiators ...

to do all they can so the talks can be completed as soon as possible."

Russia cuts off gas supplies to Ukraine

MOSCOW, Jan. 1 (Chinese media) -- Russia's state gas monopoly

Gazprom cut all natural gas supplies to Ukraine on Thursday morning after talks

broke down over payments for past shipments and a new energy price contract for

2009, a company spokesman said.

"Gas supplies have been completely cut as of 10:00 a.m.

(0700 GMT) today," spokesman Sergei Kupriyanov said at a press conference.

Full story