.Russian Gas Stops Flowing Through Ukraine as Spat Escalates
MOSCOW -- Russian gas stopped flowing through Ukraine altogether Wednesday, depriving the European Union of one fifth of its gas needs as a pricing dispute between Moscow and Ukraine continued to deteriorate.
With no talks scheduled until Thursday and subzero temperatures in large swaths of Europe, EU countries such as the Czech Republic and Slovakia said they were receiving no Russian gas at all. Overall, a dozen countries have so far reported a complete or partial cut-off, while some continue to receive limited gas via a pipeline that transits Belarus.
The halt of transit via Ukraine means the dispute is far more serious than a similar row between the two countries in 2006. The EU, which on Tuesday called the gas stoppages "completely unacceptable," is under growing pressure to intervene more forcefully in what is swiftly becoming a pan-European crisis.
"If supplies are not resumed by tomorrow, we will have to see stronger intervention from both the EU presidency and the EU as such," said Czech Prime Minister Mirek Topolanek, whose country holds the EU presidency, Reuters news agency reported. It wasn't clear what measures he had in mind, although he floated the possibility of a joint EU-Russia-Ukraine summit to resolve the dispute.
European Commission President Jose Manuel Barroso on Wednesday telephoned both Russian Prime Minister Vladimir Putin and Ukraine's prime minister, Yulia Tymoshenko, demanding that they restart supplies to the EU and find a durable solution to their problems, a spokeswoman for Mr. Barroso said. The EU also said Tuesday it was willing to send observers to Ukraine to monitor transit volumes.
The escalating fight, which began last week as a commercial disagreement over pricing, has reignited debate across the EU over its deep reliance on Russian energy and placed fresh strain on the West's already difficult relations with Russia.
Several EU countries have introduced emergency restrictions on natural-gas use. On Wednesday Ukraine, which has built up large reserves, also said it may need to curb usage for domestic consumers. Russian imports account for about a quarter of the EU's total natural-gas consumption, and 80% of those Russian imports come via Ukraine.
Speaking in Berlin, Alexander Medvedev, deputy chief executive of Russian energy giant OAO Gazprom, blamed Ukrainian state gas company Naftogaz Ukrainy for the shut-off. He told reporters Naftogaz had suddenly shut down the last of four transit pipelines. A prolonged shut-off in such cold weather risked serious damage to the pipeline network, he added.
Naftogaz said Gazprom had suddenly stopped pumping transit gas via Ukraine on Wednesday morning. "It was the Russian side's decision to stop all gas deliveries to Europe" Naftogaz head Oleh Dubina told reporters. "I think it is inappropriate."
Mr. Dubina is expected in Moscow on Thursday for the first face-to face talks with Gazprom since New Year's Eve when negotiations over a new gas price for 2009 collapsed. Meanwhile, Mr. Dubina's deputy and Gazprom chief executive Alexei Miller will visit Brussels Thursday, to put their cases to worried EU officials and the European Parliament.
If anything though, positions seem to be hardening. On Wednesday, Russian state TV showed Gazprom spokesman Sergey Kupriyanov complaining about Ukraine stealing more Russian gas in the last 24 hours. Ukraine denies it has stolen any gas.
Ukraine President Viktor Yushchenko wrote to the EU on Wednesday, saying how worried he was by the unfolding situation. He suggested the European Commission send independent observers to Ukraine to establish exactly who is at fault, according to Russian news agency Interfax.
As recently as Monday, European officials had been reassuring their populations that the quarrel -- which began Jan. 1 when Gazprom cut deliveries meant for Ukraine's domestic consumption -- didn't pose a significant threat to EU consumers further downstream.
On Tuesday, however, gas deliveries via Ukraine dropped far more than during a similar dispute in 2006. As regional temperatures fell well below freezing, thousands of households in Bulgaria were left without heat. Poland and Bulgaria ordered chemical and other gas-intensive factories to cut back their consumption or shut down operations.
Russia and Ukraine had appeared close to a deal on New Year's Eve, when talks broke down. Russia was arguing for a price of $250 per 1,000 cubic meters of gas, while Ukraine wanted a price of $201, up from $179.50 in 2008.
Since Jan. 1, Ukraine has said it may be willing to pay $235, but Gazprom has said it now wants $450 and Kiev is demanding an increase in the transit price Gazprom pays, which also is below world levels.
WSJ
With no talks scheduled until Thursday and subzero temperatures in large swaths of Europe, EU countries such as the Czech Republic and Slovakia said they were receiving no Russian gas at all. Overall, a dozen countries have so far reported a complete or partial cut-off, while some continue to receive limited gas via a pipeline that transits Belarus.
The halt of transit via Ukraine means the dispute is far more serious than a similar row between the two countries in 2006. The EU, which on Tuesday called the gas stoppages "completely unacceptable," is under growing pressure to intervene more forcefully in what is swiftly becoming a pan-European crisis.
"If supplies are not resumed by tomorrow, we will have to see stronger intervention from both the EU presidency and the EU as such," said Czech Prime Minister Mirek Topolanek, whose country holds the EU presidency, Reuters news agency reported. It wasn't clear what measures he had in mind, although he floated the possibility of a joint EU-Russia-Ukraine summit to resolve the dispute.
European Commission President Jose Manuel Barroso on Wednesday telephoned both Russian Prime Minister Vladimir Putin and Ukraine's prime minister, Yulia Tymoshenko, demanding that they restart supplies to the EU and find a durable solution to their problems, a spokeswoman for Mr. Barroso said. The EU also said Tuesday it was willing to send observers to Ukraine to monitor transit volumes.
The escalating fight, which began last week as a commercial disagreement over pricing, has reignited debate across the EU over its deep reliance on Russian energy and placed fresh strain on the West's already difficult relations with Russia.
Several EU countries have introduced emergency restrictions on natural-gas use. On Wednesday Ukraine, which has built up large reserves, also said it may need to curb usage for domestic consumers. Russian imports account for about a quarter of the EU's total natural-gas consumption, and 80% of those Russian imports come via Ukraine.
Speaking in Berlin, Alexander Medvedev, deputy chief executive of Russian energy giant OAO Gazprom, blamed Ukrainian state gas company Naftogaz Ukrainy for the shut-off. He told reporters Naftogaz had suddenly shut down the last of four transit pipelines. A prolonged shut-off in such cold weather risked serious damage to the pipeline network, he added.
Naftogaz said Gazprom had suddenly stopped pumping transit gas via Ukraine on Wednesday morning. "It was the Russian side's decision to stop all gas deliveries to Europe" Naftogaz head Oleh Dubina told reporters. "I think it is inappropriate."
Mr. Dubina is expected in Moscow on Thursday for the first face-to face talks with Gazprom since New Year's Eve when negotiations over a new gas price for 2009 collapsed. Meanwhile, Mr. Dubina's deputy and Gazprom chief executive Alexei Miller will visit Brussels Thursday, to put their cases to worried EU officials and the European Parliament.
If anything though, positions seem to be hardening. On Wednesday, Russian state TV showed Gazprom spokesman Sergey Kupriyanov complaining about Ukraine stealing more Russian gas in the last 24 hours. Ukraine denies it has stolen any gas.
Ukraine President Viktor Yushchenko wrote to the EU on Wednesday, saying how worried he was by the unfolding situation. He suggested the European Commission send independent observers to Ukraine to establish exactly who is at fault, according to Russian news agency Interfax.
As recently as Monday, European officials had been reassuring their populations that the quarrel -- which began Jan. 1 when Gazprom cut deliveries meant for Ukraine's domestic consumption -- didn't pose a significant threat to EU consumers further downstream.
On Tuesday, however, gas deliveries via Ukraine dropped far more than during a similar dispute in 2006. As regional temperatures fell well below freezing, thousands of households in Bulgaria were left without heat. Poland and Bulgaria ordered chemical and other gas-intensive factories to cut back their consumption or shut down operations.
Russia and Ukraine had appeared close to a deal on New Year's Eve, when talks broke down. Russia was arguing for a price of $250 per 1,000 cubic meters of gas, while Ukraine wanted a price of $201, up from $179.50 in 2008.
Since Jan. 1, Ukraine has said it may be willing to pay $235, but Gazprom has said it now wants $450 and Kiev is demanding an increase in the transit price Gazprom pays, which also is below world levels.
WSJ
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