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DrMaddVibe
01-02-2006, 02:22 PM
Russia says it will pump more gas to Europe after various countries said their supplies had fallen by up to 40% after Moscow cut Ukraine's provision.

France, Italy, Germany and Poland were among those reporting falling volumes.

Russia said it was sending an extra 95m cubic metres a day to make up for gas "stolen" by Ukraine.

Ukraine denies it has siphoned off $25m (£15m) worth of gas from a pipeline crossing its territory after Russia cut off its supply in a price dispute.

Russian gas monopoly Gazprom raised the price of 1,000 cubic metres of gas from $50 to $230 and Ukraine refused to pay.

Gazprom is still charging the lower price to some former Soviet countries, though the average price in the EU is $240.

Moldovan President Vladimir Voronin said his country had also been cut off, after refusing to pay $160 per 1,000 cubic metres, according to the Itar-Tass news agency.

'Blackmail'

Kiev says it is being punished for its attempts to become more independent from Moscow and develop stronger ties with the West.

It has accused Russia of resorting to "blackmail" in order to undermine Ukraine's economy.


GAS CUT IMPACT
Ukraine - loses 100% of Russian imports
Hungary - Russian imports down 40%
Poland - supply down 14% on Sunday. Seeking to increase supplies from alternative pipe
Austria, Slovakia, Romania - supplies down by a third
Germany - says supplies have fallen, but did not quantify
France - heavy user of Russian gas. Has reported 25-30% drop in supply

Both the European Union and the US have expressed concern about the row.

The EU's foreign policy chief Javier Solana urged Kiev and Moscow to resume negotiations, as EU energy officials prepared to discuss the crisis at a meeting on Wednesday.

Germany, which depends on Russia for 30% of its supplies, has called on Moscow to "act responsibly".

Alexander Medvedev, deputy head of Gazprom, said Ukraine had stolen 100 million cubic metres of gas on Sunday.

Ukraine's Fuel and Energy Minister Ivan Plachkov said there had been no "unauthorised diversion" of gas.

But he said Ukraine had the right under existing contracts to take a share of gas exported via the Ukrainian pipeline - the main route for Russian exports - and would do so if the temperature fell below -3C.

Tension

Gazprom supplies about one-fifth of gas consumed by the European Union.

France, Italy, Austria, Hungary, Poland and Slovakia have reported a sharp fall in supplies, of between 25% and 40%.

The shortage was being passed on, as affected countries said they would in turn be pumping less gas to customers further down the line, like Serbia and Bosnia.

Mr Medvedev said Gazprom would carry out checks on gas volumes and "use all possible measures so that Western consumers continue to receive gas as foreseen by contracts".

Ukraine says it is not opposed to an increase in gas prices, if this is phased in gradually, and says taps should be turned back on while negotiations continue.

Relations between Russia and Ukraine have been tense since President Viktor Yushchenko came to power last year on a promise to strengthen relations with the EU and Nato, and steer the country out of Russia's sphere of influence.

GAZPROM'S EUROPEAN TRADE
Quantity One-third of EU gas imports, and one-fifth of gas used in EU. Ukrainian pipeline network carries 90% of Gazprom's exports to West and Central Europe.
Big customers (2004) Germany - 38bn cubic metres; Ukraine - 34bn; Italy - 21bn; Turkey - 14bn; France - 12bn
Dependence on Ukrainian pipeline Slovakia - 100% of gas consumed is from Russia; Bulgaria - 94%; Greece - 92%; Czech Rep - 73%; Hungary - 72%; Austria - 63%; Poland - 60%
Alternative pipelines Work is under way to boost capacity of pipeline via Belarus to Poland - in 2006 it could reach 33bn cubic metres per year. A pipeline also carries Russian gas under the Black Sea to Turkey (16bn cubic metres). Plans exist for a Baltic Sea pipeline, which in 2010 would carry 27bn cubic metres per year to Germany.
Sources: Gazprom, BP Statistical Review of World Energy, European Commission

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/europe/4575726.stm

Published: 2006/01/02 17:39:09 GMT

© BBC MMVI






I wonder if they were counting on Saddam's gas to make up the difference?