Russia and Ukraine slid towards a new gas war on Tuesday as Moscow slashed supplies to the ex-Soviet republic by 50% and Ukraine’s state gas company said it may cut deliveries to Europe.
Russian gas monopoly Gazprom was to cut supplies to 50% of their normal level on Tuesday at 5pm GMT, doubling a 25% cut already in force since Monday, the company said in a statement.
Gazprom insisted supplies to European Union customers via Ukraine would “be assured at full volume”, but Ukraine’s gas company, Naftogaz, suggested it might yet divert gas earmarked for Europe to make up for its shortfall.
“Naftogaz can only guarantee uninterrupted transit [of gas] to European consumers as long as it does not threaten Ukraine’s energy security,” the company said in a statement.
Ukranian Foreign Minister Volodymyr Ogryzko promised during a visit to Warsaw that his government would “do everything” to ensure that gas deliveries to the European Union continued “normally”.
“I am sure that the conflict will be resolved soon,” Ogryzko said.
The row echoed a 2006 dispute when Gazprom cut off all Ukraine’s gas because Kiev had refused to agree to a much higher price, triggering a ripple effect of shortages across Europe.
Russian-Ukrainian tensions and Gazprom’s tough stand toward Russia’s neighbours have sparked nervousness in European Union capitals over Europe’s growing reliance on Russian gas supplies — almost all of which come through Ukraine.
The dispute came after Dmitry Medvedev, chairperson of Gazprom and a tough defender of the company’s hardball negotiating tactics with customers, won Russia’s presidential election on Sunday with a huge majority.
Gazprom placed the blame for the cut firmly on Ukraine, saying Kiev had failed to pay back an alleged $600-million debt following the initial 25% supply cut on Monday.
“Ukraine has not restarted negotiations. The head of Naftogaz has not come to Moscow,” Gazprom said in a statement.
Ukraine is also preventing independent experts from monitoring the volumes of gas being delivered, Gazprom said.
Russia has in the past accused Ukraine of using more gas than it pays for by siphoning off supplies destined for Europe from a pipeline starting in the gas fields of western Siberia.
Naftogaz spokesperson Valentin Zemlyansky on Tuesday denied the charge, saying Ukraine was providing Gazprom with “all the necessary information”. Zemlyansky also said Naftogaz was still open to negotiations.
After Ukrainian President Viktor Yushchenko on Monday warned the dispute could lead to a new “gas war” with Moscow, the European Union has urged the two sides to find an agreement.
Roland Nash, chief analyst at Moscow-based investment bank Renaissance Capital, said the root of the dispute was that Gazprom was putting pressure on Ukraine to accept its terms for a new gas-supply deal.
“Every time the question of a gas deal comes up, Ukraine asks for more. Gazprom has to demonstrate its strength,” he said.
Yushchenko and Russian President Vladimir Putin announced last month that they had reached a deal on a new agreement that would regulate gas supplies between the two countries, but the final deal has not been signed.
Russia’s Nezavisimaya Gazeta on Monday speculated that Moscow’s priority was to retain a place for lucrative intermediaries, whose opaque dealings have been criticised by Kiev, and to gain access to Ukraine’s domestic gas market.
The dispute has also threatened to tear apart a coalition between Yushchenko and Ukrainian Prime Minister Yulia Tymoshenko, two pro-Western leaders who have taken different positions in the stand-off. — AFP