blinkx
  • Russia gas row threatens EU supply

  • 00:01:44
  • ITN
    • Browse

Russia gas row threatens EU supply

A row between Russia and Ukraine over gas prices is threatening supplies to other European Union countries. Ukraine's state energy firm Naftogaz said Russia has cut flows through its territory by two thirds, jeopardising supplies to countries including Germany, Europe's biggest economy. Russia's Gazprom cut off supplies to Ukraine on January 1 after failing to resolve a dispute over how much Kiev should pay for its gas, but pledged supplies to western Europe would be safeguarded. However, some southern and eastern European countries, including Austria, Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Poland, Romania, Slovakia and Turkey have seen flows ebb or stop entirely. Most larger EU countries say they have large amounts of gas stockpiled after several mild winters, and have access to supplies from sources such as Norway and Algeria. But Bulgaria, where temperatures dropped below -15C overnight, is particularly vulnerable to the disruptions because, unlike Greece and Turkey, it has no access to alternative gas supply routes. The country's economy ministry said in a statement: "As of 3.30am (0130 GMT) supplies ... to Bulgaria as well as the transit to Turkey, Greece and Macedonia have been suspended. We are in a crisis situation." A strongly-worded joint statement from the European Commission and the Czech government, now holding the EU Presidency, attacked the failure of both sides to stick to promises not to let their bilateral row spill over. It said: "Without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities to the European Union, gas supplies to some EU member States have been substantially cut. This situation is completely unacceptable. "The Czech EU Presidency and the European Commission demand that gas supplies be restored immediately to the EU and that the two parties (Russia and Ukraine) resume negotiations at once with a view to a definitive settlement of their bilateral commercial dispute." On Monday, Russian Prime Minister Vladimir Putin said supplies to Europe via Ukraine would be cut by about one sixth but said Gazprom would boost supplies through other routes to compensate for the cuts. Mr Putin said he was forced to act because Kiev was siphoning off gas intended for customers in Europe. Naftogaz denied that and said Gazprom was deliberately endangering supplies to Europe. The US has called on Russia to consider the humanitarian implications of disrupting gas supplies in winter to countries facing freezing conditions.

ITN | January 6, 2009Watch more videos from ITN

Tags:. .naftogaz. .contradiction. .reassurances. .bilateral. .stockpiled