Ukraine Blocking Gas To EU, Russia Claims

Dispute Prolongs Bitter Energy Crisis, Keeping Parts Of Europe Cold And Dark

(AP)  Russia's state gas monopoly accused Ukraine of blocking transit of Russian gas to Europe hours after supplies were restarted, extending the bitter energy crisis that left large parts of Europe cold and dark.

Gazprom began pumping gas into Ukraine shortly after 10 a.m. Moscow times (0700 GMT), but four hours later Gazprom's Deputy Chairman Alexander Medvedev said Ukraine's pipeline system had failed to carry it on to Europe.

"Ukraine didn't open any export pipelines," Medvedev said in a call-in with reporters. "They just shut down the entry of the pipeline in the direction of the Balkans. We don't have the physical opportunity to pump the gas to European customers."

A Ukrainian official said the gas could not be transported to Europe because of technical reasons.

EU Commission President Jose Manuel Barroso has complained directly to Russian Prime Minister Vladimir Putin over the lack of natural gas flowing to Europe.

Barroso's aide said Barroso called Putin to express "disappointment with both the level of gas flowing to Europe" and the lack of access "of our monitors to dispatch centers." Putin promised to look into both matters.

Ukraine's state gas company Naftogaz declined comment.

Russia has accused Ukraine of stealing gas intended for Europe and only restarted supplies after a EU-led monitoring mission was deployed to gas metering and compressor stations across Ukrainian territory. The observer mission includes EU, Russian and Ukrainian officials and representatives of European energy companies.

EU spokesman Ferran Tarradellas Espuny said, "very limited" amounts of gas started flowing to Ukraine and only through one entry point from Russia to Ukraine.

He said EU monitors still do not have full and free access to dispatching centers in Kiev or Moscow to check the gas flow.

"The information that we have from our monitors in Russia is that little or no gas is currently flowing and we are not at this stage jumping to conclusions as to why this is the case," said another EU spokeswoman, Pia Ahrenkilde Hansen. "This situation is obviously very serious and needs to improve rapidly."

Medvedev accused Ukraine of barring observers from a central control room for its pipeline network and underground gas storage in violation of an EU-brokered monitoring deal.

Ukraine has fiercely denied the siphoning accusation, but Prime Minister Yulia Tymoshenko warned on Monday that Ukraine will have to use some gas from Russia as so-called "technical gas" to power compressors that push Europe-bound gas through its 23,000 miles of pipelines.

Gazprom has insisted it is Ukraine's duty to provide the gas. Gazprom spokesman Sergei Kupriyanov warned Tuesday that "the amount of Russian gas pumped into Ukraine's pipeline network must strictly correspond to the amount of gas flowing out of Ukraine."

Valentyn Zemlyansky, the spokesman for Ukraine's Naftogaz, said Ukraine will continue to use some of the Europe-bound gas as fuel for its pumping stations and denounced Gazprom's demands as an "attempt to put pressure on Ukraine."

"Where else will we take those volumes (of gas) from?" Zemlyansky said.

Russia's President Dmitry Medvedev already has ordered Gazprom to reduce supplies if it again sees Ukraine siphoning gas, and suspend it completely if it believes Ukraine continuously steals gas.

Russia supplies about one-quarter of the EU's natural gas, 80 percent of it shipped through Ukraine, and the disruption came as the continent was gripped by freezing temperatures in which at least 11 people have frozen to death.

The gas cutoff has affected more than 15 countries, with Bosnia, Bulgaria, the Czech Republic, Hungary, Serbia and Slovakia among the worst hit. Sales of electric heaters have soared and thousands of businesses in eastern Europe have been forced to cut production or even shut down.

Russia stopped gas supplies to Ukraine on Jan. 1 amid a contract dispute, but continued sending gas to Europe across the Ukrainian territory until Jan. 7 when it fully halted shipments over alleged Ukrainian theft.

Russia used the gas dispute to reaffirm its push for prospective gas pipelines under the Baltic and the Black Sea which would bypass Ukraine. But EU officials said the crisis should encourage a search for independent energy sources and supply routes, such as the U.S.-backed Nabucco pipeline that would carry Caspian energy resources circumventing Russia.

While the current gas crisis was triggered by a pricing dispute, relations between the two ex-Soviet neighbors have been strained since the 2004 Orange Revolution in Ukraine led to the election of a pro-Western government in Kiev.

Ukraine's efforts to join NATO and its support for the former Soviet republic of Georgia in its war with Russia in August has angered the Kremlin. Last week, U.S. officials had warned Russia not to use its energy resources as a weapon against Europe.

Russia still will not send natural gas to Ukraine for domestic consumption. The neighbors remained deadlocked over the price Ukraine should pay for gas in 2009 and the amount Russia should pay for transporting gas through Ukraine.

Ukraine in 2008 paid $179.50 per 1,000 cubic meters of Russian gas and turned down Gazprom's proposal of $250 for 2009 - a substantial hike for the economically distressed country but still far below some $450 that European customers pay.

The latest round of price talks ended Sunday without result.

[comeon11]

And you guys believe a word that comes out of the Russian government? LMAO.

[libsareturds]

Ukrain is lyin through their teeth! techincal problem my A$S! THERE IS NO PROBLEM BUT THE FUEL IS BEING SYPHONED OFF BY THE UKRAIN AND THE REST OF EU IS GETTING COLD, I SEE INVASTION HERE AND SOON LOL!

[rjs1955]

Can''t it be argued that Gazprom is soaking the EU ($450/1K cm), while giving the "Food Stamp" discount to the Ukraine ($179/1K cm or even $250)? I feel for the Ukrainians, who were under Russian heels for most of the 20th century, but jimminy Christmas, look at hotel rates for 3 star hotels or nice restaurants in Kiev! And the ugly fact is probably that the Ukrainians ARE stealing the Russians (and EU) blind. The Ukrainian moral compass through must of the last 100 years has been just about as checkered as that of the Russians and Germans who fought and killed millions on its soil.

[samael2014]

Posted by samael2014 at 08:32 AM : Jan 13, 2009

Sorry, the difference in the price of gas paid by the Ukraine and other Europeans is $450-$179.50 per thousand cubic meters or approx. $270 (60% LESS!). This difference is apparently made up as a loss in revenue to Russia and NOT the Ukraine in modern western world capitalism.

Also, the U.N. is world body founded on an adherance to democratic principles and common interests and demonstrates this through equality and protection of humanity and all member states via prosecution and eforcement of it''s charter.

Just to make sure we know what kind of world we live in, and why you have to be an moronic and amoral A$$hole to consider U.S. opinion as anything but dirt in light of these circumstances.

[samael2014]

Yes, I do believe that building a pipeline around the Ukraine is the best solution.

And any Europeans wanting to invest THEIR taxpayer money on more expensive gas from the Caspian Sea are welcome, Bush knows best and has a record of finding ways to pay for these things that just don''t matter to people in the here and now.

The poetic irony / the Bush legacy. It''s as if God himself couldn''t have designed this better himself and rubbed the AMerica and the western world''s face in pariah Bush''s feces as punishment for allowing this psycopath to plague the global landscape of the 21st century.

[samael2014]

Ukraine in 2008 paid $179.50 per 1,000 cubic meters of Russian gas and turned down Gazprom''s proposal of $250 for 2009 - a substantial hike for the economically distressed country but still far below some $450 that European customers pay.

Now, I DO BELIEVE that in the Western world''s taxpayer soaked form of capitalism, this more than $220 difference in price per 1,000 cubic meters is supposed to be offset/paid through subsidies by the government of the Ukraine or some other sponsoring government. If the Ukraine government doesn''t have this money, they need to do as the American people are suffered to do and BORROW it.

To the best of my knowledge, they were supposed to be doing just that by borrowing from either the World Bank or some European bank (which is apparenty PRECISELY what these banks are being encouraged to do right now).

So why the **** isn''t this happening?

The INTENSE and highly ACUTE hypocrisy is AMAZING. Apparently the western world EXPECTS socialization on behalf of the provider (where the Russian government and taxpayers are suppose to offset the loss in profit to the Ukraine -- another country entirely).
Where in the ****ing Western world does this happen to companies that provide natural resources to other nations?