RUSSIA HALTS
NATURAL GAS SALES TO UKRAINE
Russia's natural gas monopoly gazprom has stopped sales to Ukraine over
a
price dispute on Sunday, and is also reducing pressure in transmission
lines that carry
supplies to Western Europe.
Gas is not flowing at all through some of the transit routes, according to
Naftogaz which is Ukraine's
natural gas company.
Gazprom gave Ukraine a deadline of midnight Saturday to pay quadruple the
amount it had previously paid for Russian gas.
Gazprom supplies about one quarter of the gas consumed in Europe and one
third of the gas consumed in Ukraine, most of the gas goes through pipes that
cross Ukraine and that raises worries of widespread disruptions through much
of the continent.
The showdown demonstrates the tension between the Russians and Ukranian
President Viktor Yushenko who wants to reduce Moscow's influence in his
country.
The crisis comes as Ukraine prepares for parliamentary elections in March
where Yushenko's party faces the party of Victor Yankovych a Moscow
protege. The dispute with Ukraine raises concerns that EU supplies could be
affected,but EU energy commissioner Andris Piebalgs said last week that
Europe can cope with a temporary disruption to its gas supply.