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Ukraine stealing gas: Russia

Vladimir Radyuhin

Austria, Hungary and Poland report a sharp fall in supplies

MOSCOW: A day after it cut off natural gas supplies to Ukraine over a price dispute Russia accused Ukraine of stealing Europe-bound gas from pipelines running across its territory.

On January 1, Ukraine tapped into 100 million cubic metres of Russian gas exported to Europe worth over $25 million, said a top official at Russia's Gazprom state-owned monopoly.

"If the theft continues at this rate, it will add up to very significant amounts both in terms of volume and value," Gazprom deputy head Alexander Medvedev told a press conference in Moscow on Monday. He said Gazprom invited the Geneva-based SGS International to monitor Russian gas exports through Ukrainian pipelines.

Austria, Hungary, Poland and Slovakia have reported a sharp fall in supplies. However, Ukraine's Energy Minister denied any siphoning off of European gas, saying Ukraine was relying on its own gas production, gas stocks and imports from Turkmenistan. At the same time, he confirmed Ukraine would start skimming off Russian gas to cover transit fees if air temperatures in Ukraine drop below minus 3 Centigrade.

For its part, Gazprom said it was not delivering any Turkmen gas to Ukraine.

Russia stopped selling gas to Ukraine on January 1 after the latter rejected a nearly fivefold hike from $50 to $230 per 1,000 cubic metres of gas demanded by Gazprom. Kiev says it is being punished for its attempts to become more independent from Moscow and develop stronger ties with the West. In a statement on Sunday night, it accused Russia of resorting to "blackmail" to undermine its economy.

Moldova said it had been cut off from Russia gas supplies as well. Following a telephone conversation with Ukraine's President Viktor Yushchenko, Moldova's President Vladimir Voronin said he had turned down Gazprom's new price of $160 per 1,000 cubic metres of gas, a twofold increase from last year's price of $80. He said Mr. Yushchenko promised to share some gas with Moldova.

As Moldova joined Ukraine's gas war with Russia, the West stepped in criticising Russia for taking a tough line on its neighbours.

In Washington, U.S. State Department spokesman Sean McCormack said in a statement that "such an abrupt stop creates insecurity in the energy sector in the region and raises serious questions about the use of energy to exert political pressure."

German Economy Minister Michael Glos, whose country covers 30 per cent of its gas needs from Russia, called on Moscow must act responsibly. "Russia has the G-8 presidency and also here [in this dispute] one should naturally act responsibly," Mr. Glos said.

Gazprom supplies about one-quarter of the gas consumed in Europe, and 80 per cent of it goes through Ukraine.

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