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Ukraine gas row complicates as Russia toughens position
Source: Xinhua |
January 5, 2009, Monday
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RUSSIA yesterday 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 US$450 per 1,000 cubic meters, 32 dollars more than its last offer.
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 US$500 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 today, 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.
Russia's state-controlled gas company Gazprom said the company wanted US$450 per 1,000 cubic meters, 32 dollars more than its last offer.
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 US$500 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 today, 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.
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