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Mar. 05, 2008
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Gazprom Halved Gas Supplies to Ukraine
Russia’s gas monopoly Gazprom trimmed another quarter of Ukrainian supplies in response to Kiev’s refusal to pay off the gas debt in whole and enter into the contracts for 2008. The revival of gas conflict after its apparent settlement by Russia’s and Ukrainian leaders resulted from the power struggle between President Viktor Yushchenko and Prime Minister Yulia Tymoshenko.
Gazprom reduced yesterday gas supplies to Ukraine by another quarter. The deliveries had been cut off by 25 percent Monday, so the overall curtailment reached 50 percent. Gazprom spokesman Sergei Kupriyanov attributed the reduction to the absence of any progress in negotiations and the failure of Naftogaz to sign the required gas contracts, including for the gas shipped to Ukraine in January and February.

As a result, Ukraine currently gets 69.3 million cu meters of gas a day, while its usual consumption stands at 156 million cu meters.

The unsanctioned withdrawal of gas hasn’t been recorded in the first day since the date of the cut-off, Kupriyanov said, specifying that Gazprom will continue to fully execute the export obligations.

But Naftogaz thinks different. In its press release, the company informed that by reducing the gas supplies to Ukraine, Gazprom has violated the key provision of technical cooperation with Naftogaz, i.e. the guarantee of continuous and accident-free transit of Russia’s gas to Europe, which is conditioned to securing the gas balance of Ukraine.

Should Gazprom proceed with breaching the agreement and further reduce the supplies of Mid-Asia’s gas to Ukraine, Naftogaz Ukrainy would be entitled to take adequate and asymmetrical actions to protect interests of its clients, people in the company pointed out.

Further blockage of negotiations by Rosukrenergo and Ukrgazenergo, Naftogaz warned, would make it impossible to step up the transit of Russia’s gas to Europe and may threaten stability of its supplies there.

Gazprom rebuffed by saying that the contract for gas transit via Ukraine should be executed irrespective of any contracts of Naftogaz and Rosukrenergo. Those are two different issues that are to be mixed in no case, Gazprom said.
www.kommersant.com

All the Article in Russian as of Mar. 05, 2008

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