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Gas crisis looms as supplies shut
Source: Agencies |
January 7, 2009, Wednesday
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A GAS crisis loomed over Europe yesterday as a contract dispute between Russia and Ukraine shut off Russian natural gas supplies to six countries and reduced deliveries to several others.
At least two Bulgarian cities had no gas, and nations such as Turkey were turning to Iran to bolster supplies.
In a sharp turnaround, the European Union blasted Russia and Ukraine, saying the sudden cut-off to some of its member countries was "completely unacceptable." Just a day ago, the EU was trying to downplay any problems arising from the gas dispute.
In response, Russia and Ukraine agreed to hold new talks on the contract dispute over Russian natural gas that travels to Europe through Ukraine's pipelines. The two neighbors are locked in a dispute over pricing and overdue payments. Russia cut off supplies to Ukraine on January 1 but had promised to keep gas moving to Europe.
The head of the Ukrainian gas company Naftogaz, Oleh Dubina, said he would travel to Moscow tomorrow for new talks. He made the decision after speaking to Alexei Miller, chief executive of Gazprom, Russia's state-controlled monopoly gas supplier.
"Given the crisis situation, we are ready to start talks at any moment," said Gazprom spokesman Sergei Kupriyanov.
Today is Orthodox Christmas, a holiday in both Russia and Ukraine.
The energy dispute sharply escalated yesterday when six countries on the other end of the pipeline network from Russia reported a complete shut-off. Russia supplies Europe with about a quarter of its gas, 80 percent of which is shipped through Ukraine.
Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments. Croatia said it was temporarily reducing supplies to industrial customers and urged domestic consumers to use gas sparingly. Bulgaria said it had enough "for a few days."
Bulgaria's President Georgi Parvanov said the country could start immediate preparations to relaunch Unit 3 of its Kozlodui nuclear power plant. The two aging 440-megawatt reactors were shut down two years ago.
Two cities in eastern Bulgaria, Varna and Dobrich, were left with no natural gas supplies yesterday. In Varna, on the Black Sea coast, the shortage left 12,000 households without central heating amid freezing temperatures.
Turkey's Energy Minister Hilmi Guler confirmed the gas cut-off and said the country was trying to compensate with supplies from other sources.
During a similar dispute between Ukraine and Russia in 2006, which lasted just three days, several West European countries saw their gas supplies drop by 30 percent or more. That crisis led to criticism of Russia as an unreliable energy partner and spurred talk of finding ways to diversify energy supplies.
At least two Bulgarian cities had no gas, and nations such as Turkey were turning to Iran to bolster supplies.
In a sharp turnaround, the European Union blasted Russia and Ukraine, saying the sudden cut-off to some of its member countries was "completely unacceptable." Just a day ago, the EU was trying to downplay any problems arising from the gas dispute.
In response, Russia and Ukraine agreed to hold new talks on the contract dispute over Russian natural gas that travels to Europe through Ukraine's pipelines. The two neighbors are locked in a dispute over pricing and overdue payments. Russia cut off supplies to Ukraine on January 1 but had promised to keep gas moving to Europe.
The head of the Ukrainian gas company Naftogaz, Oleh Dubina, said he would travel to Moscow tomorrow for new talks. He made the decision after speaking to Alexei Miller, chief executive of Gazprom, Russia's state-controlled monopoly gas supplier.
"Given the crisis situation, we are ready to start talks at any moment," said Gazprom spokesman Sergei Kupriyanov.
Today is Orthodox Christmas, a holiday in both Russia and Ukraine.
The energy dispute sharply escalated yesterday when six countries on the other end of the pipeline network from Russia reported a complete shut-off. Russia supplies Europe with about a quarter of its gas, 80 percent of which is shipped through Ukraine.
Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments. Croatia said it was temporarily reducing supplies to industrial customers and urged domestic consumers to use gas sparingly. Bulgaria said it had enough "for a few days."
Bulgaria's President Georgi Parvanov said the country could start immediate preparations to relaunch Unit 3 of its Kozlodui nuclear power plant. The two aging 440-megawatt reactors were shut down two years ago.
Two cities in eastern Bulgaria, Varna and Dobrich, were left with no natural gas supplies yesterday. In Varna, on the Black Sea coast, the shortage left 12,000 households without central heating amid freezing temperatures.
Turkey's Energy Minister Hilmi Guler confirmed the gas cut-off and said the country was trying to compensate with supplies from other sources.
During a similar dispute between Ukraine and Russia in 2006, which lasted just three days, several West European countries saw their gas supplies drop by 30 percent or more. That crisis led to criticism of Russia as an unreliable energy partner and spurred talk of finding ways to diversify energy supplies.
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