Russia Cuts Gas Supply To Europe

Ukraine Says Shipments Cut By Two-Thirds, Bulgaria Says All Supplies Stopped Completely

(CBS/AP)  Ukraine's gas company Naftogaz said Tuesday that Russia's Gazprom slashed natural gas shipments to Europe by about two-thirds, while Balkan nations reported a complete shut off of Russian gas, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.

Bulgaria's energy ministry said Russian gas supplies to Bulgaria, Turkey, Greece and Macedonia were completely cut off Tuesday morning. Turkey's Energy Minister Hilmi Guler confirmed the cutoff of gas shipped through the Balkans.

Romania's gas transport company Transgaz said Gazprom ceased pumping gas into the pipeline in eastern Romania at 3 a.m. (GMT 0100) Tuesday morning.

The European Union issued a statement later Tuesday morning calling the sudden and substantial cut in supplies to some member states "completely unacceptable."

The 27 member states demanded that supplies be restored immediately.

Bulgarian pipeline operator Bulgargaz CEO Dimitar Gogov said the reason for the suspension was not clear, but that his country's gas reserves were sufficient to cover needs "for a few days."

Gazprom officials could not immediately be reached for comment. Late Monday, it said it would cut the amount of gas it ships to Europe through Ukraine by 65.3 million cubic meters, or about 20 percent.

In Ukraine, Naftogaz spokesman Valentyn Zemlyansky said Tuesday that the shipments to European consumers had dropped to just 81 million cubic meters of gas, down from about 300 million in recent days.

"That is all they are sending, in several hours Europe will feel it," Zemlyansky told The Associated Press. He said he could not confirm that gas shipments had been cut off to the Balkans.

Gazprom had said it would cut gas shipments by the amount it accuses Ukraine of diverting from its transit pipeline network. Russia supplies Europe with about a quarter of its gas, 80 percent of which is shipped through Ukraine.

Kiev denies allegations it is stealing gas, saying Russia is to blame for the disruption because it refuses to supply the gas needed to run its pipelines, including the compressor stations that pump gas west.

Each side says the other is responsible for supplying the gas to run the pipeline network, but there is no way to sort out the conflicting claims. Details of the transit contract are secret.

The rapidly expanding crisis, now approaching its sixth day, could eventually result in disruption of supplies for consumers in Europe, where gas is used for heating and electricity generation.

Some European countries had already reported experiencing supply problems after Russia cut off supplies to its neighbor on Jan. 1 over pricing disagreements and outstanding debt.

Officials in Hungary and Bulgaria have said supplies from pipelines through Ukraine remained down.

Russia's latest reductions appear aimed at putting pressure on Ukraine, which is refusing to pay $600 million Gazprom claims it is owed.

Russia is also demanding an increase in the price Ukraine pays for its gas. Now, Ukraine pays Gazprom $179.50 per 1,000 cubic meters of gas, less than half of the average price European countries are expected to pay this year.

Ukraine, one of the largest consumers of gas in the world, says it has enough reserves to last for weeks.

During a similar dispute between Ukraine and Russia in 2006, which lasted just three days, several West European countries saw their gas supplies drop by 30 percent or more.

This time Gazprom's customers were better prepared, having built up substantial reserves.

While some Western analysts say Russia is using the current crisis to weaken Ukraine's government, Gazprom insists the dispute is purely a commercial matter.

Both nations have been hit hard by the global economic slowdown, neither seems to be in a position to afford a lengthy halt to the gas trade. Both say they are anxious to prove they are a reliable energy partner for the EU.

[mikefl11]

We put a man on the moon 40 years ago but we still can''t figure out how to satisfy our electricity requirements without burning fossil fuels. Shame on us.

[lachie3]

WE IN BRITAIN PAY THE HIGHEST PRICES IN EUROPE FOR GAS
THE UKRAINE PAYS LESS THAN HALF WHAT WE PAY. THEY HAVE SHOWN THEMSELVES FOR WHAT THEY ARE ROBBERS AND BANDITS I HOPE RUSSIA WILL TEACH THEM A LESSON THEY WILL NEVER FORGET IF ONE PERSON IN BRITAIN DIES FROM THE COLD BECAUSE OF THIS THEN THE UKRAINE WILL HAVE MADE A VERY BAD AND UNFORGIVING ENEMY.

[jamster31]

NO!

You tell the British that if you want fresh food from white farmers in Zimbabwe then you PAY THE RATE Mugabe wants you idiot!

TO HELL WITH GLOBALIZATION,

ALL IT DOES IS ROB PEOPLE OF THEIR SOVERIEGN RIGHT TO SELL THEIR PRODUCTS AT THE PRICE THEY WANT!


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I think you missed my point. Read what i was responding to.
Posted by whitemale08 at 02:25 PM : Jan 06, 2009

[cbscrash072]

Europe should look for other sources. If the Russian gas deliveries can be replaced they should be. Russia is not a dependable supplier. They will always use this as leverage.

[lewiston14]

So if Ukraine is not stealing gas that was meant for European Union nations, then how did it get enough reserves to last for weeks when several European nations don''''t have any???

Posted by xalen54

Not all gas going into the pipelines is headed for the EU or UK. They just held back some of theirs.

Whitemale: you are my hero. I was going to post the same thing. They want food stop making bombs and ditch the military and pay for what you want. Nature culling the heards again.

[timothyone-2009]

Russia is doing what the world should expect from it, just as Israel is doing her thing in Palestine. Neither seem to care about others, and are only looking after themselves. The worst of it is, we''ve been leading the world in selfish, violent acts against others, so we have no room to talk. George W. and the majority of Americans have done a wonderful job of showing the world how to show your asss and go after what you want, using lies and deception, with no regard for the truth, or the lives of the innocent. Go America!! Are you still wearing your flag pin?

[whitemale08]

So i guess that''''s what we should tell Africa. Hey! if you want to eat pay the price ir starve. I don''''t think so.


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Posted by jamster31 at 12:46 PM : Jan 06, 2009--

NO!

You tell the British that if you want fresh food from white farmers in Zimbabwe then you PAY THE RATE Mugabe wants you idiot!

TO HELL WITH GLOBALIZATION,

ALL IT DOES IS ROB PEOPLE OF THEIR SOVERIEGN RIGHT TO SELL THEIR PRODUCTS AT THE PRICE THEY WANT!

[xalen54]

Ukraine, one of the largest consumers of gas in the world, says it has enough reserves to last for weeks.
------------------------------------------

So if Ukraine is not stealing gas that was meant for European Union nations, then how did it get enough reserves to last for weeks when several European nations don''t have any???

[jamster31]

russia is a sovereign nation with a product to sell -- you want some? you pay the rate set. that''''s the way of the world. always has been, always will be.


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Posted by ccfsdca at 12:03 PM : Jan 06, 2009

So i guess that''s what we should tell Africa. Hey! if you want to eat pay the price ir starve. I don''t think so.

[lewiston14]

Yeah, let''''s Europe and the rest of the world cut all the food and meds sent to Russia and then we''''ll see who is the boss. Let them [Russians] sniff their gas and eat $hit.

Posted by nikosk11

That is so funny to say. The EU UK japan and others are so starving to export I dare say they would export to russia in a minute and russia can even name the price. Its good to have oil and gas.