Monday, January 5, 2009

Russia to cut Ukraine gas supply

Russia to cut Ukraine gas supply

A woman looks at a meter on a gas pipe at a gas-compressor station in Boyarka, near Kiev, Ukraine, 4 January 2009
Pipes across Ukraine carry about a fifth of the European Union's gas needs

Russian President Vladimir Putin has told gas giant Gazprom to cut supplies sent to Europe via Ukraine over allegations Kiev is siphoning some off.

Mr Putin said flow should be reduced by the amount he says Ukraine has taken since it ended deliveries on 1 January.

Russia stopped supplying gas to Ukraine five days ago amid a row over unpaid bills and a new pricing contract.

Ukraine denies siphoning off gas and says technical problems are disrupting the flow.

Pipes across Ukraine carry about one-fifth of the European Union's gas needs.

Several EU countries have reported a drop in gas deliveries since 1 January, apparently as a result of the dispute.

'Daily reductions'

The latest move came after Mr Putin held talks with Gazprom CEO Alexei Miller.

Europe's gas pipeline network

Mr Miller suggested that deliveries via Ukraine could be reduced "by the amount stolen by Ukraine, that is 65.3 million cu/m of gas".

Future deliveries should be reduced on a daily basis by the amount of gas stolen, he added.

Gazprom said it would compensate by sending more gas to Europe via other routes.

Earlier on Monday EU Commission spokesman Ferran Tarradellas said there was no immediate danger to EU consumers or industry.


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