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Germany Calls Russia, Ukraine to Settle Gas Dispute

Posted on: Saturday, 31 December 2005, 09:00 CST

Germany calls Russia, Ukraine to settle gas dispute

BERLIN, Dec. 30 (Xinhua) -- Germany called Russia and Ukraine on Friday to find a sustainable solution to their gas dispute, but was not considering to mediate.

Government spokesman Ulrich Wilhelm said that Germany has a strong interest in a settlement and working-level German officials had spoken with both sides, but the country was not seeking to mediate in the row.

Russia has demanded that Ukraine pay five times as much for natural gas, otherwise, it would shut off all natural gas deliveries to the latter as of Jan. 1 if Kiev does not accept the price hike.

Russia's national gas company, Gazprom, announced Friday plans to convene a company team of technical experts to implement the cut- off.

"We assume they'll reach an agreement," Wilhelm said hours after several politicians had suggested that former German chancellor Gerhard Schroeder should intervene in the dispute.

But Schroeder's office in Berlin said that the former chancellor had neither any comment on the matter nor would receive any interviews.

A spokeswoman for the German Economics Ministry said that Germany had enough gas supplies, even if Russia were to stop supplying gas through the main pipeline that supplies Ukraine and Western Europe.

The German gas industry could use reserves in tanks, which were nearly full and made to last 75 days, she said, adding to increase imports from Norway could be another alternative.

"The gas industry is fairly relaxed. There are no grounds for concern," the spokeswoman said.

About 36 percent of Germany's natural gas need comes from Russia, with 30 percent pumped via the Ukraine pipeline and 6 percent via a separate pipeline through Belarus.

A new pipeline, which runs directly from Russia to Germany, is under construction through the Baltic Sea. Schroeder has been designated chairman of the board of its operating company.

Talks were continuing in Moscow on Friday between Russia and Ukraine on the issue.

Ukrainian President Viktor Yushchenko rejected on Thursday Russia's offer of a multi-billion-dollar loan to help his country adjust to the new gas prices.

Source: Xinhua News Agency - CEIS

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