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European Gas Halted As Russia-Ukraine Deal Appears To Falter

A man looks through an ice-covered tram window as temperatures fell below minus 10 degrees Celsius in the Bulgarian capital, Sofia.

Last updated (GMT/UTC): 13.01.2009 11:15
By Chloe Arnold
MOSCOW -- Russia says it began pumping natural gas to Europe, a week after a dispute with Ukraine left large parts of the continent without heat, but quickly accused Ukraine of blocking the resumed supplies.

The Ukrainian state gas company Naftohaz admitted it was blocking the transit of the gas through its territory because it said Russia's Gazprom gas monopoly was imposing "unacceptable" conditions for the transit.

At 10 a.m. local time, officials at Gazprom ordered the taps to be switched back on. It had been expected to take at least a day for the gas to reach the European Union borders, via transit pipelines across Ukraine.

A senior Gazprom technician was shown on Russian television giving the order by telephone from a control center to a gas-pumping station.

“Good day...I am requesting that as of 1000 Moscow time, you start supplying gas through Sudzha to the territory of Ukraine at the rate of 3.12 million [cubic meters] per hour or 76.6 million cubic meters per day for consumers in the Balkan region, Turkey, and Moldova," he said. "Carry out the order.”

But just hours later, the gas transit through Ukraine was halted.

We believed that the door for Russian gas was open, but again it's been blocked by the Ukrainians.
"We believed [on January 12] that the door for Russian gas was open, but again it's been blocked by the Ukrainians," Gazprom export chief Aleksandr Medvedev said in a conference call with reporters.

The European Commission said monitors are reporting that "little or no gas" was flowing from Russia through Ukraine and said the situation must change.

The latest snag comes after a week of wrangling that appeared to be resolved on January 12, when Russia, Ukraine, and the EU reached a three-way agreement calling for the deployment of an EU-led monitoring mission to gas metering and compressor stations across Ukrainian and parts of Russian territory.

The mission includes EU, Russian, and Ukrainian officials and representatives of European energy companies.

Gazprom's chief gas controller had said Russia would begin by pumping gas at about one-quarter of the rate it sent to Europe before the crisis. That amount was meant to be swiftly increased to normal supply levels once international monitors confirmed that none of the Russian gas being transported through Ukraine has gone missing, Russian officials said.

What Price To Pay?

The EU has expressed its unease with the dispute. On January 12, European Commission President Jose Manuel Barroso said it was unacceptable that European citizens had been kept in the cold without the gas for which they had paid.

The gas crisis was sparked by a dispute between Russia and Ukraine on January 1 over what price Kyiv should pay for Russian gas. Russia originally cut its supplies to Ukraine only. But days later it halted gas supplies to consumers in Europe, which depend on Ukraine as a transit route for Russian gas, after accusing Ukraine of siphoning off gas destined for the EU. Kyiv vehemently denies the charge.

An operator in a Kyiv control room of Ukrgastrans monitors Ukraine's network of gas pipelines.
Moscow is still not supplying gas for Ukraine itself because of their contract dispute, and Russian officials said differences with Kyiv over how to ensure transit to Europe could still create problems, Reuters reports.

Russia supplies about one-quarter of the EU's natural gas, 80 percent of which is transported through Ukraine. The disruption came as the continent was gripped by sub-zero temperatures.

More than 15 countries have been affected by the dispute, with Bosnia-Herzegovina, Bulgaria, the Czech Republic, Hungary, Serbia, and Slovakia among the worst hit. In Bulgaria, schools have been forced to close because there isn't enough fuel to heat them, while Slovakia has threatened to reopen a deactivated nuclear power station to make up for its power shortage.

The row prompted emergency EU talks in Brussels on Europe's reliance on Russian gas. Ministers were expected to address the issue of energy diversification to prevent such heating crises in the future.

The EU may also consider alternative fuel-supply routes, including the proposed Nabucco pipeline, which would pipe Central Asian gas across Turkey to Austria, and bypass Russia altogether.
     
Comments
by: valentine akishkin from: Russia
January 18, 2009 04:35
Mrs. Timoshenko has just bargained a 20% discount to what all other European countries pay for gas. The lady has scored her foremost and primary goal in the gas crisis as now there is no need to guess who will become the next Ukrainian president. For this lady the crisis was nothing other than the beginning of her election campaign for future presidency.
Nevertheless, Ukraine’s liability to pay remains highly questionable. No political or economical mechanism has been contrived should the Ukraine wield its ‘privilege” to block gas supplies in the future. Given its distressing financial situation engraved by the world financial crisis, the next blockage crisis is just around the corner. Regretfully, the EU had nothing to say in the matter and will remain hostage to extremely deplorable and unmanageable consequences. Bearing in mind the way Mrs. Timoshenko handles things, she will not be a remedy to Europe’s energy problems.
Consequently, I see the gleam in the eyes of US policy makers. Mrs. Timoshenko as next president will keep her hands tight on the throats of Europe and Russia making the reliability of Russia gas supplies to Europe vulnerable, and dependable on the upshots of the political situation in the Ukraine, which is far from being stable.

by: valentine akishkin from: Russia
January 18, 2009 03:00
The Ukraine has just bargained itself a 20% discount on the price of gas all other European countries pay. Now, it is clear enough why the pipeline line was blocked and for what reason. There is little hope that they will not continue to muddle payment, so the problem is still there.

by: valentine akishkin from: Russia
January 17, 2009 16:14

Valentine Akishkin
Russian entrepreneur

TIME TO AWAKE FROM TRANSATLANTIC ILLUSIONS

Bolstered by the Bush administration the EU has been rigorously digging itself into series of ungovernable brisances. Two coloured revolutions in Georgia and the Ukraine sponsored and adorned by transatlantic unity have brought nothing but confusion. Bush’s spate to expand NATO by including these two subversive handcrafted “democracies” was premeditated as an instrument to vie “resurgent” Russia; the whole evasion being enshrouded behind a veil of “honorable” purposes.
Not the least pertinacity was paid to either diagnose the consequences of hastily ushering these machinated political appendages into power or determine why the cheerleaders of these “democracies” so insistently sought entrance to NATO. In the first case the EU’s unscrupulous and unresisting demeanor, consecrated by US doggedness was humbly assumed by Saakashvili to be a blessing for his bloody swashbuckling assault of South Ossetia.
At the same time, the EU bestowed itself the role of an innocent, sinless bystander, whereas EU stolidity and disregard multiplied by US pandering was the fuse that instigated Saakashvili’s intervention of South Ossetia.
Today, Europe is facing its next self-pollinated Gordian knot based on the same quaint transatlantic doctrine, “Russia can never be right”. The present day “orange” political elite in the Ukraine; a regime that the Transatlantic Unity has so lovingly fostered has emerged with an “orange” interpretation of resolving financial problems. Apart from siphoning or bluntly saying sealing Russian gas, transatlantic fostering has brought Yushenko and his associates to the belief, similar to the case of Saakashvili, that there is no limit to unheeding maleficence as long as it implies harm on Russia. Blocking Russia gas supplies, crucial to Europe, found pardon in the “transatlantic agenda”, although it is only fair to say that the negative impact affected mainly on east European countries, some of which are not EU members, and others have little say in European affairs.

Ukraine’s blocking gas supplies to Europe is only a consequence of today’s toothless European policy following up “transatlantic fraternity” stipulating that support to any regime be offered as long as it opposes Russia. What better way would there be to contend Russia other than surrounding it with a military block or by showing how vulnerable its gas supplies were. The US plan of finding an alternative route for gas to Europe is scoring points supported by the Ukraine’s disrupting gas supplies to Europe. Immediate Ukrainian interests fall in unison to US long term aspirations and explain how Yushenko with a popularity rating of 2 % dares to harass both Russia and the EU.
Transatlantic patronizing of “colour” revolutions, the expansion of NATO or the installation of US anti rocket systems in Europe will not disgruntle “resurgent” Russia as it will at length backfire on Europe itself. Georgia has lost all hope of finding a way to integrate South Ossetia and Abkhazia and the Ukraine has become a territory of unpredictable political upheaval. The EU must understand that the time has come to put serious doubt on the Cold War reflexes that constitute today’s transatlantic agenda.



by: elmer
January 13, 2009 15:03
However, Ukrainian energy adviser Bohdan Sokolovsky said Russia deliberately shipped the gas along a technically arduous route that requires Ukraine to cut domestic consumers out before it can deliver gas to the Balkans.

He said a gas entry point on the Russian border and a gas pumping station near the Romanian border where Gazprom wants its gas delivered are not linked by an export pipeline.


by: elmer
January 13, 2009 14:36
By midday, both companies had issued statements suggesting tensions in the new arrangement. Naftogaz, the Ukrainian national energy company, said its technicians had received a telegram from Gazprom early Tuesday saying the Russians would send a test shipment to the Balkans later in the day. It was unclear whether the pipelines could transport this small volume without being repressurized first, however.

The Naftogaz statement said the arrangement with the test shipment had not been previously agreed between the companies.

"Naftogaz announces that this volume and destination was not coordinated in time between the operators of the two adjacent gas transport system," referring to the pipeline systems of Russia and Ukraine. "This strongly contradicts established practice."

     
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