Wednesday, March 5, 2008

Russia cut off gas supplies to Ukraine

he Russian gas giant Gazprom has cut a quarter off gas supplies to Ukraine, a few hours after the election to the presidency of the Russian Kremlin candidate Dmitri Medvedev, also chairman of the board of Gazprom.

Gazprom has undertaken to ensure that exports to Europe will not be affected. A quarter of all gas supplies to Europe pass through Ukraine.

"Gazprom is a reliable supplier of gas, but we can not and will not provide gas without it being paid," said Sergei Kouprianov in Moscow, spokesman for Gazprom. Deliveries, he said, were reduced by 40 million cubic meters per day.

The Ukrainian national energy company, Naftogaz, confirmed the decline in deliveries, but talking about an extra 10%, bringing to 35 the total reduction%, or 46 million m3, according Zemlianski Valentin, spokesman for the firm.

By comparison, Gazprom supplies Europe with 410 million m3/day and Ukraine receives 135 million.

Gazprom said not to be able to find a compromise with Ukraine on debt Kiev (600 million dollars according to Moscow on earlier deliveries) and concerned by the absence of any contract for deliveries in 2008. Russia had already, at New Year 2006, cut off the tap of gas to Ukraine, because of disagreements over the price of delivery.

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