Posted on 01/01/2006 10:08:49 AM PST by SpikeMike
EU nations have started to feel the impact of Russia's axeing of gas supplies to Ukraine, as Moscow accused Kiev of stealing EU supplies.
Hungary and Poland were the first EU states to have supplies disrupted.
Russia's state-run firm Gazprom cut Ukrainian supplies from the pipelines on Sunday after talks failed to solve a politically-charged price row.
Exports to the EU are carried through the same pipes, and Gazprom now says Kiev is stealing some of that gas.
"There is information that Ukraine has begun siphoning off Russian gas that is designated for European users," Gazprom spokesman Sergei Kuprianov was quoted as saying some eight hours after the Ukrainian supply was cut.
Earlier, Ukraine's own state-run gas firm accused Russia of jeopardising Western European supplies.
"Gas is not flowing at all through some transit routes, which can lead to a fall in pressure in all the pipelines and limit the overall supply of gas to Ukraine and Europe," said Eduard Zaniuk, a spokesman for Ukrainian state-run gas giant Naftogaz.
"Naftogaz declares such actions unacceptable because they endanger gas deliveries to Europe."
Ukraine's prime minister has said his country has the right to take 15% of the remaining supplies in the pipelines as payment for transporting the gas to Western Europe.
Europe's Energy Commissioner confirmed the crisis was causing concern, despite previous Russian assurances that EU supplies would not be hit.
"The dispute definitely does not help us and keeps us worried because 20% of our gas supplies go through this route, so if there is a dispute so there are eventualities that could come out," Andris Piebalgs told the BBC.
"So we are not too certain if everything will happen as both sides have promised us."
EU governments are convening a meeting of their gas industry experts in Brussels on 4 January to discuss the crisis.
Some EU countries rely particularly heavily on Russian gas. Germany, for example, gets about 30% of its gas supplies through Ukraine.
Polish concern
In Hungary, gas firm MOL said its supplies from Russia were already down 25%, Reuters news agency reported.
The firm had ordered big consumers to switch to oil from Monday wherever possible, the agency said.
Earlier, Polish gas company PGNiG reported that the amount of gas entering its pipeline system from Ukraine was also down, according to the AFP news agency.
Kiev continues to insist that the loss of Russian supplies - which amount to 30% of its own national consumption - will not hit ordinary Ukrainian consumers during the harsh winter.
However, it has warned that supplies to industry may be affected.
The Ukrainian crisis erupted after Gazprom announced it was quadrupling the price of its gas supplies from $50 to $230 per 1,000 cubic metres.
Ukraine rejected the increase, saying it was prepared to pay a higher price but not on that scale.
Kiev has said it is currently prepared to pay no more than $80 per 1,000 cubic metres of gas.
Many Ukrainians believe Russia is punishing them for their Orange Revolution and the election of Western-leaning President Viktor Yushchenko.
Other countries which remain in Russia's sphere of influence continue to receive gas at below-market prices.
Well, it is another great example of the Kremlin’s hypocrisy. Norwegian Salmon is pretty popular fish in Poland especially during the different kind of holidays. So during the last two weeks I had few occasions to taste it and it was delicious as always. :)
Aren't you scared of being poisoned?? /sarcasm
Read and weep gary,
http://www.regnum.ru/english/568366.html
Provide a link to the contract, please?
I can't find the contract. Only refs to the original signed in 2002 and modified in 2004.
The only sticking point seems to be that Russia says the contract is to be renegotiated every year. I can find that in nothing I have read.
So there is indeed a contract but remains to be seen what is actually in it.
Quite honestly I could care less who is right or wrong here. I find it quite amusing that Russia would go after an "ally".
Though I wish Putin would be a closer ally in the war on terror and would stand against China, Iran and Syria, can anyone really blame the old satellite countries for wanting to make other friends after their centuries old tumultuous relationship with Russia?
Another lie. That is not a copy of the contract, but an article mouthing your points.
Gary,
This is the Ukrainian Priome Minister's interview and the facts are cooborated by others:
A tough one to lose for Putie
PS - why isn't he going for arbitration as the contract specifies? Maybe he does not have a case?
That's why he has to rattle his saber like a fool.
---
Mirror Weekly interviewed PM Yekhanurov.
Excerpts
Now the main thing. Will there be gas in Ukraine since January 1, 2006?
- I believe that the contract will be carried out and the gas will be supplied. But… we will still be conducting nervous negotiations.
- You mean the gas will be supplied despite the unfinished bargaining?
- As a matter of fact there is a contract between Naftogas of Ukraine and Gasprom of Russia on volume and conditions of transit of Russian natural gas through the territory of Ukraine for the period between 2003 and 2013. It is currently in effect. I cannot imagine how a public company bound by contract obligations can refuse to fulfill them. I asked the deputy head of Gasprom, Oleksandr Riazanov, during our negotiations in Moscow on December 19 in the presence of the head of the Russian Cabinet Mikhail Fradkov: “Is the contract effective?” And he said: “Yes.”
- Then why do the Russians say that they will stop contract supplies of gas to Ukraine on January 1, 2006?
- One can always find a reason to make a statement. But in article 14 of this contract it is clearly stated that: “This contract comes in effect on January 1, 2003… It remains effective until 10 am on January 1, 2014.” And one more thing: “During the period between 2005 and 2009 the Customer (Gasprom) will sell annually natural gas at the price of 50 US dollars for 1000 cubic meters, which is not subject to change by the parties, from the gas transportation services of Russian natural gas through the territory of Ukraine to ensure the gas balance of Ukraine.”
- What do you think of possible arbitration with Gasprom?
- “Any disputes about these contract or as a result of it are subject to examination and final settlement in the Arbitration Institution of the Chamber of Commerce in the city of Stockholm.” (This is Article 12 of the contract). I am not afraid of possible arbitration. Ukraine has already had a positive experience of arbitration. So if we have to appeal, we know what to do and where to go.
You may "like" this (sarcasm)
Maybe russian alergy to anything Polish is being officially recognized?? If so, many Russians can die of anaphylactic shock. /sarcasm
Haven't been here in a while. Just sobbered up :-)
We in Moscow don't know what to do with illegals and protitutes from Ukraine.
The number of Ukrainian hookers in Russia is overrated- a nice myth for bolster the Russian ego. White ladies entertaining semi-Asians- that kind of thought.
Teach them not to steal please.
Hypocrisy- you steal the Turkmeni gas.
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