Gas supply to Ukraine cut, report says
Ξ January 1st, 2009 | → | ∇ Uncategorized |
MOSCOW, Russia (CNN) — Russian energy monopoly Gazprom said Thursday it had cut off supplies of natural gas to Ukraine after a payment deadline expired.
A gas-compressor and gas-holder station in Mryn, Ukraine. Gazprom said it had cut supplies to Ukraine Thursday.
Gazprom had been threatening the move, saying months of negotiations with Ukraine had failed to resolve the issue of outstanding payments. Ukraine owes the energy giant about $2 billion for past natural gas deliveries.
Ukraine disputes the new price set by Gazprom for 2009 deliveries, which was initially more than double the price from 2008.
Gazprom had reassured Western Europe that their natural gas supply, which runs through Ukraine, would not be affected by the dispute with Kiev. Thursday, a Gazprom spokesman said on Russian state television the company had actually increased the deliveries to Europe.
"Gazprom will continue supplying gas for its consumers in Europe at full volume," the company’s chief executive, Alexey Miller, said. "We have an effective transit contract."
Without natural gas, some Ukrainians could be in for chilly days and nights. The temperature at midday Thursday in Kiev was 25 degrees Fahrenheit (-4 degrees Celsius), with a forecast high of only 32 F (0 C) and snow predicted overnight.
Ukrainian President Viktor Yushchenko called Wednesday for every effort to be made to sign an agreement with Russia, his energy security commissioner told the Interfax news agency.
Watch a report on Gazprom’s threats to cut off gas supplies to Ukraine »
It is the second time in three years Gazprom has threatened to cut off gas supplies to Ukraine. The company made good on its threat on January 1, 2006, but turned the spigots back on a day later.
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Russia is the world’s biggest producer of natural gas and supplies Europe with more than 40 percent of its imports — mainly via the pipelines through Ukraine.
Ukraine owes Gazprom about $2 billion for past natural gas deliveries.
The Kiev Post reported Tuesday that Ukraine’s state-controlled energy company, Naftogaz Ukrainy, said it had paid $1.5 billion toward the debt, but Gazprom said it had not received the payment.
Also at issue is Gazprom’s contract for 2009 deliveries. Gazprom had wanted to more than double Ukraine’s payments, but Wedne
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