Russia’s image as a reliable international energy supplier became increasingly tarnished on Monday as a stand-off with Ukraine over gas prices disrupted supplies to Europe.
The Russian energy group Gazprom accused Ukraine of stealing about $25-million-worth of natural gas from transit supplies destined for other European countries, but most European Union members blamed President Vladimir Putin for the crisis. On Monday night, Gazprom appeared to bow to international pressure by increasing transit supplies flowing through Ukraine by the amount allegedly siphoned off.
Germany’s Economy Minister, Michael Glos, called on Moscow to compromise in its feud with Ukraine.
”Russia has the presidency of the G8 [Group of Eight] and therefore has to act responsibly,” he said.
The Russian state-owned energy company Gazprom switched off flows to Ukraine on Sunday after a bitter, politically charged dispute over gas prices. A drop in deliveries to other countries sent through the same pipeline network was noticed within 24 hours.
In the United Kingdom, the Energy Minister, Malcolm Wicks, admitted the dispute could affect European and global markets. Speaking to the BBC, he reminded Russia it had ”never let down Europe during the Cold War” and expressed hope it would be ”mindful of its reputation as a secure energy supplier”.
Five EU countries on Monday confirmed that the amount of gas arriving from Russia had fallen off dramatically. Germany, Austria, Poland, Hungary and Slovakia all reported a sharp drop in supplies, with Hungary saying its gas deliveries had gone down by 40%.
”This situation cannot be accepted. Russia is mixing its foreign policy with its policy for gas supplies,” Poland’s Deputy Prime Minister, Ludwik Dorn, told broadcaster Radio Zet. While harsh judgement of Russia from former Soviet satellite states was predictable, there was fresh debate from ”old Europe” as to how it should respond ahead of tomorrow’s emergency meeting of EU energy experts.
The EU buys a quarter of its gas from Gazprom. Glos, who belongs to a conservative coalition led by Germany’s Chancellor, Angela Merkel, said the country should now reconsider its decision to phase out nuclear energy.
Two German importers of Russian gas, Wintershall and E.ON Ruhrgas, confirmed that Germany, which imports 30% of its gas from Russia, ”had been affected”. The firms refused to say, however, how much gas had disappeared, with a Wintershall spokesperson insisting that ”here everyone will get through the winter warm”.
Looking on from Washington, the US State Department said it was concerned that the gas stoppage created ”insecurity in the energy sector in the region and raises serious questions about the use of energy to exert political pressure”.
Russia took over the presidency of the G8 nations on Sunday, and Putin has promised to make energy security a cornerstone of his leadership.
Moscow attempted to shift all blame for the conflict to Kiev. Gazprom deputy chairperson Alexander Medvedev said that since delivery of gas had stopped, Ukraine had siphoned off 100m cubic metres from pipelines crossing the country. The Ukrainian Prime Minister, Yury Yekhanurov, denied that gas had been taken.
Andrei Illarionov, a former senior Kremlin adviser who resigned last week, claimed on Monday that Gazprom had no legal right to stop gas flows to its neighbour. Illarionov said a price of $50 per 1 000 cubic metres had been fixed for five years in 2004. Moscow now wants $230. — Guardian Unlimited Â