The EU and the US have voiced concern after Russia has cut gas supplies to Ukraine on 1 January due to a price dispute. But EU consumers are less likely to be hit by disruptions as in early 2006. Russia's gas monopoly Gazprom cut off gas supplies to Ukraine early on Thursday after talks on the new gas price for 2009 failed shortly before New Year's Eve. Without a valid contract, Gazprom said, it had no legal basis to continue supplying Ukraine. It takes 36 hours for the Russian gas to reach the EU borders through Ukraine and see if there are disruptions. Ukraine rejected a price increase, saying that falling oil prices did not justify the move. Kiev also claimed it has paid its outstanding debt of €1 billion to RosUkrEnergo, the gas-trading intermediary, while Gazprom maintained it had not received the money and also expected €432 million fines for late payment.
The EU and the US have voiced concern after Russia has cut gas supplies to Ukraine on 1 January due to a price dispute. But EU consumers are less likely to be hit by disruptions as in early 2006.
Russia's gas monopoly Gazprom cut off gas supplies to Ukraine early on Thursday after talks on the new gas price for 2009 failed shortly before New Year's Eve. Without a valid contract, Gazprom said, it had no legal basis to continue supplying Ukraine.
It takes 36 hours for the Russian gas to reach the EU borders through Ukraine and see if there are disruptions.
Ukraine rejected a price increase, saying that falling oil prices did not justify the move. Kiev also claimed it has paid its outstanding debt of €1 billion to RosUkrEnergo, the gas-trading intermediary, while Gazprom maintained it had not received the money and also expected €432 million fines for late payment.
MOSCOW/KIEV (Reuters) - European countries began to suffer from reduced gas supplies on Friday after Russia cut deliveries to Ukraine in a contract dispute. The Czech Presidency of the European Union said it would call a crisis meeting of envoys in Brussels on Monday to discuss the row, which both Russia and Ukraine had said would not affect other European countries. "We feel that the situation has now escalated to a point that substantiates an extraordinary meeting," Czech presidency spokesman Radek Honzak said. Talks will probably be called soon with Moscow, a second presidency spokesman in Prague said.
MOSCOW/KIEV (Reuters) - European countries began to suffer from reduced gas supplies on Friday after Russia cut deliveries to Ukraine in a contract dispute.
The Czech Presidency of the European Union said it would call a crisis meeting of envoys in Brussels on Monday to discuss the row, which both Russia and Ukraine had said would not affect other European countries.
"We feel that the situation has now escalated to a point that substantiates an extraordinary meeting," Czech presidency spokesman Radek Honzak said.
Talks will probably be called soon with Moscow, a second presidency spokesman in Prague said.
Jan. 2 (Bloomberg) -- Russia and Ukraine prepared to resume talks in their dispute over natural gas prices after OAO Gazprom cut supplies to the former Soviet state for the second time in three years. Ukrainian President Viktor Yushchenko said in a statement yesterday the two sides are near a compromise, urging state utility NAK Naftogaz Ukrainy and Gazprom, Russia's gas exporter, to meet again in the next one or two days. Gazprom also proposed talks.
Jan. 2 (Bloomberg) -- Russia and Ukraine prepared to resume talks in their dispute over natural gas prices after OAO Gazprom cut supplies to the former Soviet state for the second time in three years.
Ukrainian President Viktor Yushchenko said in a statement yesterday the two sides are near a compromise, urging state utility NAK Naftogaz Ukrainy and Gazprom, Russia's gas exporter, to meet again in the next one or two days. Gazprom also proposed talks.
given that the ukraine also has a political leadership crisis right now (again) they aren't even in a position to sort it out by making nice cos there is nobody who can commit the ukraine to a decision that won't be counter-manded within a week.
I imagine it's not beyond imagination that the Rusians are exploiting this situation for amusement purposes, but I really don't see how this is benefiting Gazprom in the long term even if others see short term benefits. keep to the Fen Causeway
I hope to have a post on this tomorrow. In the long run, we're all dead. John Maynard Keynes
