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Russia-Ukraine Row May Push Gas Prices in Britain: Official

Posted on: Tuesday, 3 January 2006, 09:00 CST

Russia-Ukraine row may push gas prices in Britain: official

LONDON, Jan. 2 (Xinhua) -- The dispute between Russia and Ukraine over gas prices posed no immediate threat to gas supplies in Britain but there may be knock-on effects because Britain imports gas from Europe, a British energy official said.

"There is no immediate threat to gas supplies in the UK, none of the UK's gas is imported directly from Russia," British Energy Minister Malcolm Wicks was quoted by the Sky News as saying on Monday, a day after the row between Russia and Ukraine erupted over a proposed four-fold increase in charges for gas from Russia.

But Wicks cautioned: "It is, however, important that we understand the potential impacts of the negotiation for the European gas market, including the impact on prices."

Britain does not import gas directly from Russia, but is connected to the Europe-wide wholesale gas distribution network through a pipeline beneath the North Sea between Belgium and the north of England.

Wicks, who is scheduled to attend a meeting of EU colleagues on Wednesday, said the row was a developing situation and it was therefore too early to make predictions. Around fifth of European gas imports come from Russia via Ukraine.

Energywatch chief executive Allan Asher has warned that companies would try to exploit the uncertainty in Ukraine to push them still higher, saying "The gas and oil companies are always looking for excuses to ramp up the prices."

The British gas industry is already under fire from consumer watchdog for raising prices ahead of the latest development.

Scottish and Southern Energy (SSE) increased gas bills on Sunday by 13.6 percent and electricity charges by 12 percent, while Npower put up its prices by 14.5 percent for gas and 13.6 percent for electricity.

Source: Xinhua News Agency - CEIS

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