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Gazprom: Ukraine Is Using Too Much Gas (The Oranges are stealing again)
Reuters ^ | Tuesday, January 24, 2006 | Dmitry Zhdannikov

Posted on 01/24/2006 12:41:25 AM PST by jb6

Russia reopened its gas row with Ukraine on Monday as the state monopoly Gazprom all but accused Kiev again of stealing gas and reducing onward supplies to Europe.

But Ukraine, a key transit route for Russia's huge supplies to Europe, said it was abiding by all its obligations despite soaring domestic gas use due to the cold.

The comments appear to be reigniting the dispute that occurred earlier this month when Gazprom accused Ukraine of stealing gas destined for the West and Russia cut off supplies to its neighbor over their failure to agree on a new contract.

The two sides finally agreed on the contract on Jan. 4. But on Monday, Gazprom came close to accusing Ukraine of again stealing Russian transit gas.

"We can call it gas shrinkage, off-take, legal or illegal, whatever. But what is happening in reality is that gas is being held by Ukraine above agreed levels, which is not allowing us to fully meet our obligations with international buyers," Gazprom export chief Alexander Medvedev said on Rossia television.

"We can't work like that."

Gazprom supplies one-quarter of Europe's gas needs, and several of its clients, including in Italy and Hungary, have complained about reduced supplies over the past week.

Some members of the European Union had severely criticized Moscow for the cuts in early January. But they have refrained from doing so over the past week when Moscow was mainly blaming extreme cold at home and soaring demand in Europe for gas shortages across the continent.

Ukrainian Prime Minister Yuriy Yekhanurov told reporters his government was fully meeting obligations on Russian gas transit to Europe.

"We will do everything to cut our domestic consumption. Yesterday, Ukraine consumed 407 million cubic meters of gas, and our Russian partners are nervous because of it," he said.

"I am grateful to Gazprom for its understanding of the situation caused by the considerable drop in temperatures and that it allowed Ukraine to increase daily consumption limits," Yekhanurov said.

Ukraine was using around 280 million cubic meters per day at the start of the year, when temperatures were much milder. With temperatures well below minus 20 degrees Celsius in Moscow and Kiev, the Gazprom's ability to keep its clients satisfied has been tested over the past week.

Many observers have said a second large disruption in European gas supplies in less than a month is highlighting the continent's risks of relying heavily on one major supplier.


TOPICS: Business/Economy; Foreign Affairs; Russia
KEYWORDS: business; foreign; gas; oranges; russia; ukraine

1 posted on 01/24/2006 12:41:28 AM PST by jb6
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To: GermanBusiness; Igor M; ausrus; Hill of Tara; Timedrifter; Alex-DV; ValenB4; truemiester; ...

ping


2 posted on 01/24/2006 1:08:12 AM PST by jb6 (The Atheist/Pagan mind, a quandary wrapped in egoism and served with a side order of self importance)
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To: jb6
http://www.mediafax.ro/english/articole-free/Ukraine-Admits-Withholding-Gas-From-Europe-444692-9.html

Ukraine Admits Withholding Gas From Europe

KIEV, Jan 23

Ukraine has been withholding some Russian natural gas exports meant for customers in Europe, where several countries have reported falls in gas supplies amid a severe cold weather snap, an official with Ukraine''s state-owned energy firm told AFP.

3 posted on 01/24/2006 1:32:12 AM PST by jb6 (The Atheist/Pagan mind, a quandary wrapped in egoism and served with a side order of self importance)
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To: jb6

Global warming.


4 posted on 01/24/2006 3:35:00 AM PST by robomurph
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To: jb6

Yushchenko must be breathing a huge sigh of relief that he isn't going to be working at his office by candlelight.

On the other hand, his trailing numbers in the elections ought to be giving him a lot to think about.


5 posted on 01/24/2006 3:28:21 PM PST by Hill of Tara
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