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17.01.2009, 14:00 3 comments

‘Europe can use gas crisis as an excuse for new pipelines’

“The current gas crisis can be used by Europe as an excuse for pushing forward projects, like the Nabucco pipeline, which could stop Russia being one of their providers,” said Pavel Sorokin from the Unicredit Aton bank.

19.01.2009, 02:39

Gas dispute close to end

Russia and Ukraine are due to sign a gas deal on Monday, which will allow the two sides to resume transit of Russian fuel to European customers.

Central dispatch-control office, Moscow (AFP Photo / Alexander Prokopenko) 21.01.2009, 01:37

Gas flow to Europe resumes

Gazprom has switched on the gas taps to Europe via Ukraine, ending a dispute that has left millions without heat for weeks.

14.01.2009, 20:04

‘No transit country has the right to take consumers hostage’ – Putin

Russia says that Ukraine is deliberately blocking the resumption of gas supplies to Europe through its territory. Gas supplies to at least 15 countries have either been cut off completely or severely reduced.

20.01.2009, 20:26

Gas dispute over

Russia and Ukraine have signed a gas deal on Monday which will allow the two sides to resume transit of Russian fuel to European customers. Gas will soon start moving to Europe after it enters Ukraine's pipelines.

Russian gas deliveries to Slovakia via Ukraine were halted last night (AFP photo / Samuel Kubani) 07.01.2009, 15:00

Ukraine has shut all gas pipelines to Europe – Gazprom

Gazprom says Ukraine’s shut all 4 pipelines which send gas to Europe, causing several countries to run out of fuel. But Ukraine claims that Russia stopped delivering all gas to Europe through its territory on Wednesday.

AFP Photo / Sergei Supinsky 11.01.2009, 20:48

Russia ready to partially buy Ukraine’s gas pipelines

Vladimir Putin says Russia is ready to take part in the privatisation of Ukraine's gas transport system, if Kiev agrees. The Russian Prime Minister was speaking as the energy dispute between the two countries continues.

11.01.2009, 18:54

‘Ukraine should admit bankruptcy’ – analyst

‘The Ukrainian leadership should admit that the country’s economy reached bankruptcy even before the gas conflict with Russia,’says Kirill Koktysh, political analyst at Moscow State University of International Relations.

AFP Photo / Genia Savilov 14.01.2009, 09:19

Ukraine refuses to transport Russian gas to Europe

Gazprom says the international observers confirmed that Kiev has made it impossible for Russia to export gas to its European consumers.

14.01.2009, 10:49

European dependence on Russian gas

Russia’s daily gas supply to Europe is estimated to be about 300 million cubic metres, with 80 percent of the flow being transited through Ukraine.

Europe running out of gas

Published: 06 January, 2009, 23:01
Edited: 05 March, 2010, 23:29

AFP Photo /Attila Kisbenedek

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TAGS: Conflict, EU, Russia, Ukraine, Gas


Several European countries have had their deliveries of gas through Ukraine cut off, a situation which the EU describes as “unacceptable”. Gazprom says Ukraine's energy company has shut off a number of pipelines.

Meanwhile, the head of Naftogaz has announced he is ready to resume negotiations.
Speaking at a media conference on Tuesday, the head of the board of Naftogaz of Ukraine, Oleg Dubina, said he would visit Moscow on January 8 to continue the negotiations on gas supplies.

Gazprom’s spokesman Sergey Kupriyanov said they were surprised by statements coming from Naftogaz to resume talks only on Thursday.

“Considering that the situation is critical, we are ready to start talks any minute.”

The previous round of talks ended on December 31 after which Gazprom shut down gas deliveries to its neighbour.

In all, five EU member countries – Poland, Hungary, Romania, Bulgaria and Greece – have reported that gas deliveries via Ukraine have been reduced.

Speaking at a news conference in London, Gazprom's Deputy CEO Aleksandr Medvedev said:

“We are facing this challenge together with our European partners. Actually, we became hostages of the irresponsible behaviour of the transit country through which 80 % of our [gas] export goes to Europe. It’s not even a question of a commercial dispute. It’s a question of absolute irresponsibility in handling the export flow of natural gas via Ukraine,” he said.

Russia’s energy giant Gazprom confirmed it's doing its best to compensate European customers for the gas it claims was stolen by Ukraine, but adds that its resources are not unlimited.

Earlier Gazprom said it's having to divert fuel supplies away from Ukraine. It also warned Ukraine will have to pipe its own gas reserves to Europe to make up for the fuel that Gazprom claims was stolen.

At a meeting with Russian prime minister Vladimir Putin, Gazprom CEO Aleksey Miller said there is only one thing that can be done, namely “cutting gas deliveries to the Russia-Ukraine border by the amount stolen by Ukraine – 65.3 million cubic metres.”

“In the future we propose to cut gas deliveries by the amount Ukraine steals,” he said.

Vladimir Putin gave Gazprom the green light for reducing supplies, though he said the move will unfortunately affect a lot of ordinary Ukrainian citizens who have for the last three years been caught up in the energy battle.

During this three-year period, the situation has become so predictable that every official, journalist and analyst can guess what will most likely happen – and when.

Ukraine refuses to settle its debt and move over to market prices for its gas. When supplies are finally cut off, it may resort to filling up from the European fuel it transits.

The problem recurs annually around New Year’s Eve. The only things that do change are the reasons Kiev puts forward. This year these are its contracts, which are suddenly deemed ‘not effective’. A Ukrainian court has even forbidden the transit of gas through the country, but Gazprom says that decision carries no legal weight.

According to Gazprom spokesman Sergey Kupriyanov, this decision of the Kiev economic court is totally illegitimate, because the transit relations of Gazprom and Naftogaz, its Ukrainian counterpart, are regulated by Swedish law according to the contracts, and these issues can be settled only at the Arbitration Institute of the Stockholm Chamber of Commerce.

The Ukrainian energy company Naftogaz has pulled out of negotiations and was not available to comment.

Europe's gas supplies are decreasing, and its winters getting colder. As reasons for concern increase, Brussels has called for an emergency meeting.

“At the moment gas supplies to consumers are not under threat. The EU and its member states have been able to compensate for any falls in supply”, said Radek Honzak, a spokesman for the Czech permanent representation to EU, but he added that this is, of course, a serious problem, and a solution needs to be found immediately. The Czech Republic took over the rotating six-month presidency of the European Union from France on January 1.

Gazprom has assured its customers that gas will be rerouted through Poland and Belarus. But as well as wanting to meet its obligations to its customers, the Russian energy giant evidently wants to sort out problems with Ukraine once and for all.

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06.01.2009, 12:42

Time to grin and bear it in ‘Land of Smiles’

Thailand is often known as the ‘Land of Smiles’, but now people have fewer reasons to look happy amidst the global recession. In Bangkok the usually festive New Year mood has been overshadowed by the crisis.

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