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Ukraine may cut Europe gas supply Ukraine may cut Europe gas supply
(20 minutes later)
Ukraine has said it may restrict Russian gas supplies to Europe if gas monopoly Gazprom goes ahead with further cuts in Ukrainean supply.Ukraine has said it may restrict Russian gas supplies to Europe if gas monopoly Gazprom goes ahead with further cuts in Ukrainean supply.
State-owned Gazprom says it will cut supplies of gas to Ukraine by a further 25% on Tuesday, but had said shipments to Europe would be unaffected.State-owned Gazprom says it will cut supplies of gas to Ukraine by a further 25% on Tuesday, but had said shipments to Europe would be unaffected.
A large proportion of the gas Russia sells to Europe passes through pipelines in Ukraine.A large proportion of the gas Russia sells to Europe passes through pipelines in Ukraine.
The dispute began after Russia said Ukraine had not paid its debts.The dispute began after Russia said Ukraine had not paid its debts.
Gazprom said it reduced supplies to Ukraine by 25% on Monday after talks broke down last week.Gazprom said it reduced supplies to Ukraine by 25% on Monday after talks broke down last week.
Escalating crisis
Monday's cut effectively ended supplies of Russian gas which make up a quarter of Ukraine's imports. The rest comes from other states and is supplied by Russia.Monday's cut effectively ended supplies of Russian gas which make up a quarter of Ukraine's imports. The rest comes from other states and is supplied by Russia.
The crisis escalated on Tuesday as Gazprom announced a second cut.
They [Gazprom] reassured us that gas supplies to the European Union will not be affected European Commission spokesperson Michele CerconeThey [Gazprom] reassured us that gas supplies to the European Union will not be affected European Commission spokesperson Michele Cercone
Naftogaz, Ukraine's state gas company reserved the right to take "appropriate" action - and disrupt supplies to Europe that transit Ukraine - if Gazprom carried out the threatened additional cut on Tuesday.Naftogaz, Ukraine's state gas company reserved the right to take "appropriate" action - and disrupt supplies to Europe that transit Ukraine - if Gazprom carried out the threatened additional cut on Tuesday.
"In the event that Gazprom continues blatantly to violate technical agreements between the two countries by reducing volumes of Central Asian gas to Ukraine, Naftogaz reserves the right to introduce appropriate, assymetrical actions to defend the interests of Ukrainian consumers," the company said."In the event that Gazprom continues blatantly to violate technical agreements between the two countries by reducing volumes of Central Asian gas to Ukraine, Naftogaz reserves the right to introduce appropriate, assymetrical actions to defend the interests of Ukrainian consumers," the company said.
Debt pressure
The crisis escalated on Tuesday as Gazprom announced a second cut.
Gazprom claims the outstanding debt is $1.5bn (£770m) and called on Ukraine to get back around the negotiating table.Gazprom claims the outstanding debt is $1.5bn (£770m) and called on Ukraine to get back around the negotiating table.
"Twenty four hours have passed since Gazprom reduced supplies by a quarter, however the Ukrainian side has not resumed negotiations and the head of Naftogaz did not arrive in Moscow," Gazprom spokesman Sergei Kupriyanov said."Twenty four hours have passed since Gazprom reduced supplies by a quarter, however the Ukrainian side has not resumed negotiations and the head of Naftogaz did not arrive in Moscow," Gazprom spokesman Sergei Kupriyanov said.
He said Ukraine still owed money for gas already delivered, but Ukraine maintains the payments have already been made. But Ukraine maintains the payments have already been made.
Push for talks European fears
Mr Kupriyanov reassured European gas users earlier on Tuesday that shipments of Russian gas, which use pipelines that cross Ukraine, will continue.Mr Kupriyanov reassured European gas users earlier on Tuesday that shipments of Russian gas, which use pipelines that cross Ukraine, will continue.
"Export deliveries via Ukrainian territory are carried out in full volume," he said."Export deliveries via Ukrainian territory are carried out in full volume," he said.
European Commission spokesman Michele Cercone added: "They [Gazprom] reassured us that gas supplies to the European Union will not be affected.European Commission spokesman Michele Cercone added: "They [Gazprom] reassured us that gas supplies to the European Union will not be affected.
"The Commission is concerned about the apparent reductions and urges both parties to go ahead in negotiations and quickly find a definitive solution to this commercial issue.""The Commission is concerned about the apparent reductions and urges both parties to go ahead in negotiations and quickly find a definitive solution to this commercial issue."
The Gazprom spokesperson said Ukraine had refused access to two observers hired by Gazprom to monitor gas transit to Europe. A National Grid spokesperson said the UK does not rely on pipelines crossing Ukraine for its gas. "The UK doesn't get any of its gas direct from Russia," he said.
But the Ukrainian energy company Naftohaz Ukrayiny said Gazprom representatives were already present in the country, and that the two observers did not comply with "necessary regulations".
"Such statements are just the next step in escalating tension," Naftohaz Ukrayiny spokesman Valentyn Zemlyanskyy said.