Russian Gas Shut Off From Europe Three Hours After Re-flowing
(Moscow-1/13/2009 8:40 P.M.)
http://www.asahi.com/international/update/0113/TKY200901130298.html
Regarding the issue of Europe consumed Russian Natural Gas via Ukraine, Russian State Corporation Gazprom reopened it's Europe aimed gas lines at 10 A.M. However after 3 P.M., Ukraine routed gas lines were once again shutoff. It seemed as if the European Gas Shortage would finally end, but Russia and Ukraine's heavy confrontation continues.
According to Interfax News Agency, Gazprom was to begin by supplying 76,000,000 cubic meters of gas a day. First it would go to the heavily dependent Balkan States, Moldova and Turkey. Then it would accelerate through Ukraine who "would not steal" any supplies, providing full service.
Russia on it's part has said "We have provided the gas, but Ukraine is blocking it. Everything is in violation of our agreement." The situation has reemerged.
The root of the matter is the dispute of "stolen or hoarded gas" between both countries. The accused Ukraine stands in opposition to the accusing Russia by stating; "To provide relay of gas, technical specifications are required." Such "specifications" were an amount of gas at 25,000,000 cubic meters to ensure pipeline pressure. Ukraine insists that hereafter it would provide Europe with such gas. Russia countered with "Such technical specifications (pipe pressure) should be met by Ukraine itself".
Russia also seems to be taking issue with the EU delegated observation team that was part of the resupply conditions. Prime Minister Putin clearly warned "If the stolen gas matter is not looked into, Europe's portion of gas provisions will diminish". There still remains the possibility of Europe becoming caught in a gas shortage.
Even with the reopening of Europe's gas supply, the breakdown of Russian-Ukrainian yearly price contract negotiations which fell threw last year, still remain. Russia has continued gas shutoff which occurred on the 1st. With the problem bogging down, neither side has sat down for negotiation.
Last fall, both countries negotiated a price freeze. At first, Russia presented a price of $250 per 1000 cubic meter, an increase over last year. However, due to Ukraine's refusal the protocol has been ineffective and the European Market Price rose to $450.
Ukraine for its part has claimed that gas prices coupled with crude oil have become cheaper, stating that protocol called for a price of $250. Russia ongoing claim that Ukraine skipped out on transport costs and last year's gas payments continues.
Asahi Shinbun
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