Russia cuts off natural gas to Ukraine
Russia’s state natural gas monopoly halted exports to Ukraine on Thursday in a dispute that could interrupt supplies to other European countries -- and taps into the deep animosity between Russia and its pro-Western neighbors.
Despite weeks of negotiations, Gazprom and Ukraine were unable to come to terms over Ukraine’s debts, as well as the cost of 2009 gas and transit fees. Gazprom said that with no contract in place, there were no grounds to continue exporting to Ukraine.
Eager to soothe worries about interruptions, Russia increased supplies to other European customers. About one-fifth of the gas bound for the European Union passes through Ukraine, and analysts say Europe could do without it for only several days.
Russian officials have warned that Ukraine might siphon off other customers’ gas. Russian Prime Minister Vladimir Putin said Ukraine would face “quite serious consequences” for any supply interruptions to Europe.
Ukrainian officials say the country has enough reserves to keep domestic supplies stable for months, and they pledged to keep gas flowing to Europe. But experts warned that the Ukraine stoppage could create a pipeline pressure drop, resulting in transit problems to other countries.
Each side blamed the other for the breakdown in talks.
So far, the discussions remain on hold, although Ukrainian officials indicated they expected a deal to be struck before Orthodox Christmas on Wednesday. A delegation from Ukraine’s state-run gas company, Naftogaz, was due in Moscow late Thursday for talks.
At the close of the first day of the stoppage, the negotiating gap between the two countries had widened.
Accustomed to gas worries after years of bickering with Russia, Ukraine has substantial underground reserves. On Thursday, Naftogaz said it took 200 million cubic meters of gas out of storage to meet domestic demand.
The price dispute is playing out against a backdrop of tension between the two former Soviet neighbors. Since 2005’s Orange Revolution ousted a Russia-backed government and installed pro-Western leaders, relations have been tense.
Gas prices have been a recurring source of tension. After similar disputes in 2006, Russia cut off gas to Ukraine for four days, disrupting supplies to the rest of Europe.--
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