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Gazprom cuts Ukraine gas supply | Gazprom cuts Ukraine gas supply |
(about 1 hour later) | |
Gazprom, Russia's gas monopoly, has cut supplies to Ukraine after talks between the two sides ended in failure. | |
State-owned Gazprom said it would cut total shipments to Ukraine by 25%, but Ukraine's national gas firm Naftogas has claimed that the reduction is 35%. | |
The dispute centres on a $1.5bn (£770m) debt that Gazprom says it is owed, and Ukraine officials say has been paid. | |
Gazprom has offered assurances that supply to consumers in the rest of Europe will not be affected. | |
A previous row between the two sides saw Russia cut gas to Ukraine in 2006, also hitting exports to Western Europe. | A previous row between the two sides saw Russia cut gas to Ukraine in 2006, also hitting exports to Western Europe. |
The European Commission has called for a swift resolution despite assurances that supply to Europe will not be harmed. | |
"The Commission has called (on) the two parties to find quickly a definitive solution to this commercial issue," said Commission spokesman Michele Cercone. | |
"We continue to monitor closely the development of this situation," he added. | "We continue to monitor closely the development of this situation," he added. |
Gazprom spokesman Sergei Kupriyanov said: "Gas deliveries to European consumers will go on in full amount." | Gazprom spokesman Sergei Kupriyanov said: "Gas deliveries to European consumers will go on in full amount." |
He added that Gazprom was prepared to continue negotiations with Ukrainian officials. | He added that Gazprom was prepared to continue negotiations with Ukrainian officials. |
Stalemate | Stalemate |
Last month, Russian President Vladimir Putin and Ukraine's Viktor Yushchenko reached an outline deal, but the details could not be agreed. | Last month, Russian President Vladimir Putin and Ukraine's Viktor Yushchenko reached an outline deal, but the details could not be agreed. |
Ukraine's deputy prime minister said the money owed had already been transferred and that documents to confirm this had been sent to Gazprom. | Ukraine's deputy prime minister said the money owed had already been transferred and that documents to confirm this had been sent to Gazprom. |
But Gazprom's Mr Kupriyanov maintained that the problem had not been resolved. | But Gazprom's Mr Kupriyanov maintained that the problem had not been resolved. |
"Gazprom is a reliable supplier of energy resources, but we cannot and should not deliver gas without payment," he said in a statement. | "Gazprom is a reliable supplier of energy resources, but we cannot and should not deliver gas without payment," he said in a statement. |
Continued tensions? | Continued tensions? |
The gas cut came hours after Gazprom chairman Dmitry Medvedev won the Russian presidential election with the support of President Vladimir Putin. | The gas cut came hours after Gazprom chairman Dmitry Medvedev won the Russian presidential election with the support of President Vladimir Putin. |
The Kremlin has tightened its grip on Russia's oil and gas supplies and used this control to help create an economic boom in the country. | The Kremlin has tightened its grip on Russia's oil and gas supplies and used this control to help create an economic boom in the country. |
Valery Nesterov from Troika Dialog stock brokers said he doubted the tense relationship between Moscow and the pro-Western Ukrainian government would change under Mr Medvedev's rule. | Valery Nesterov from Troika Dialog stock brokers said he doubted the tense relationship between Moscow and the pro-Western Ukrainian government would change under Mr Medvedev's rule. |
"Clearly, the Russia-Ukraine gas relationship, which was already on the rocks, began to deteriorate sharply last month," he said. | "Clearly, the Russia-Ukraine gas relationship, which was already on the rocks, began to deteriorate sharply last month," he said. |
He observed the unresolved problems include "Ukrainian debts to Gazprom, gas prices, the marketing scheme for gas, re-exports of Russian gas and more importantly the broader geopolitical disagreements between the two countries". | He observed the unresolved problems include "Ukrainian debts to Gazprom, gas prices, the marketing scheme for gas, re-exports of Russian gas and more importantly the broader geopolitical disagreements between the two countries". |