Russia Halts Gas Sales to Ukraine
Posted on: Monday, 2 January 2006, 18:00 CST
By JIM HEINTZ
Russia halts gas sales to Ukraine
MOSCOW Russias natural gas monopoly halted sales to Ukraine in a price dispute Sunday and began reducing pressure in transmission lines that also carry substantial supplies to western Europe.
Ukraines natural gas company Naftogaz acknowledged the reduction by Russias Gazprom.
Gas is not flowing at all through some transit routes, which can lead to a fall in pressure in all the pipelines and limit the overall supply of gas to Ukraine and Europe, said Naftogaz spokesman Eduard Zaniuk.
However, he said, for the people and municipal services there will be enough gas.
Gazprom had given Ukraine a deadline of midnight Saturday to agree to pay quadruple the amount it previously paid for Russian gas, which accounts for about a third of the consumption in the country of 48 million people.
The showdown has underlined the tensions between the two former Soviet republics since Ukrainian President Viktor Yushchenko a West- leaning leader who wants to reduce Moscows clout in his country defeated a Russian-backed rival in a bitter electoral battle a year ago.
The gas crisis comes as Ukraine prepares for parliamentary elections in March, in which Yushchenkos bloc faces a strong challenge from the party of Viktor Yanukovych, who lost the presidential ballot after mass street protests forced a revote.
The Russian Foreign Ministry said Sunday that Ukrainian authorities consciously decided to ruin the talks process with the Russian side and to use the gas problem almost to create the image of an enemy with the goal of manipulating the internal political situation.
On Saturday, Russian President Vladimir Putin said Ukraine could continue paying the old price of $50 per 1,000 cubic meters for the first quarter of 2006, but only if Ukraine agreed by the end of the day to start paying the new price of $230 in the second quarter.
Source: Advocate; Baton Rouge, La.
Related Articles
- CME Group Announces the Launch of New Natural Gas Liquids Average Price Options Contracts
- Research and Markets: Monthly Price Brief Report - A Review of European Gas and Power Price Trends 2008
- The Latest Review of European Gas and Power Price Trends Are Available in This Monthly Price Brief: Analyse Figures for June 2008
- Review of European Gas and Power Price Trends for April 2008
- A Review of European Gas and Power Price Trends Provides an Examination of the Wholesale Gas Price Trends in Europe's Three Key Markets
- Research and Markets: Analyse Gazprom's Expansion in the Power Segment Inside the Study 'The Merger of Gazprom and RAO UES and the New Gas and Electricity Pricing Patterns'
- Gas Trader to Pay for Extra Gas Ukraine Consumed in January - Russia's Gazprom
- Russia Closes Natural Gas Tap -- Halts Sales to Ukraine in Price Feud
- Germany Receives Less Gas After Russian Cut-Off, Says Energy Giant
- Belarus Gets Bargain on Russian Gas, Ukraine Faces Dramatic Hike
User Comments (0)

RSS Feeds