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Russia hardens stand in gas row

MOSCOW: Russia has hardened its stand on a gas row with Ukraine, cutting gas exports to Europe via Ukraine by the amount Ukraine siphons off from the pipe for its needs.

Russia cut off all gas supplies to Ukraine on January 1 after the two sides failed to reach agreement on the settlement of Ukraine’s outstanding gas debt and the new price of gas for 2009.

President Vladimir Putin approved a proposal of the natural gas monopoly Gazprom to reduce Europe-bound shipments through Ukraine on Tuesday by 65 million cubic metres, or 20 per cent, the amount Gazprom said Ukraine had stolen since January 1. Moscow also said that henceforth it would further reduce the volume of gas shipped through Ukraine by if Ukraine diverted more gas for itself. Gazprom said it would try to mitigate shortages by shipping more gas through Belarus and Turkey, but the capacity of the alternative pipelines is limited.

Ukraine has responded by shutting down three out of the four Russian gas export pipelines on Tuesday, reducing shipments to Europe to one seventh of normal flow rates, Gazprom Deputy Chief Executive Alexander Medvedev said.

Some southern and eastern European countries, including Bulgaria, Turkey, Greece and Macedonia, have reported their gas supplies from Ukraine stop entirely, while other countries said they experienced significant reductions. Disruptions came as a cold wave swept over Europe, with temperatures as south as Italy dropping to an unusual minus 20 degrees Centigrade.

A report "Russia hardens stand in gas row" ("International" page, January 7, 2009) had a reference to President Vladimir Putin. Mr. Putin is now the Prime Minister of Russia

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