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European Union gas fact-finding mission to meet in Moscow on Tuesday

5 January, 18:39 | Reuters
European Union gas fact-finding mission to meet in Moscow on Tuesday
MOSCOW/KIEV, Jan 5 (Reuters) - The European Union on Monday scheduled talks with Russia to press for a speedy resolution of a dispute with Ukraine that has hit gas supplies to countries in eastern and southern Europe facing freezing temperatures.

Russian gas monopoly Gazprom cut off gas supplies to Ukraine on Jan. 1 in a dispute over debts and pricing that shows no sign of ending.

The move has worried European countries, which get one fifth of their gas through pipelines that cross Ukraine.

An EU fact-finding mission will meet Gazprom officials on Tuesday, although there was no immediate danger to EU consumers from the dispute, an EU Commission spokesman said.

The Commission said the meeting would be in a European capital but the venue had not been confirmed.

"Since we are the main market for Russian gas ... we have an obvious interest in applying pressure on these parties to reach as soon as possible an agreement which is definitive," Johannes Laitenberger said.

Disruptions to gas supplies that had already hit Turkey, Poland, Romania, Bulgaria and Hungary spread to Croatia and Greece on Monday, energy firms said.

"We were informed today that we would receive only 4 million cubic metres of natural gas from Russia compared to our request for 6 million cubic metres, due to the dispute," an official at Greek gas operator DEPA told Reuters.

In the Czech Republic, holder of the EU's rotating presidency, gas supplies dropped at the weekend but were back to normal on Monday, the country's main supplier said.

Temperatures in the Bulgarian capital, Sofia, were minus 5 degrees Celsius on Monday while in Hungary they were minus 3 degrees Celsius.

The gas row, which mirrors a dispute three years ago that disrupted supplies to Europe via Ukraine, threatens Russian ties with the West already strained by Moscow's war in Georgia in August.

The Kremlin has long opposed Ukraine's ambition to join NATO and some Western policymakers see parallels between the Georgian conflict and Russia's treatment of Ukraine.

Gazprom's chief executive, Alexei Miller, will meet Russian Prime Minister Vladimir Putin on Monday for talks on the dispute, a government spokeswoman said.

The European Union has also called an emergency meeting of envoys for 1330 GMT on Monday in Brussels. The previous dispute in early 2006 led to calls for the EU to diversify its energy supplies, but it has struggled to break its reliance on Russia.

BALKANS AFFECTED

State-controlled Gazprom has blamed Ukraine for siphoning off or blocking deliveries of gas equivalent to one-sixth of Russia's total supplies to Europe. It said it was pumping additional volumes to make up for the shortfall.

Ukraine has accused Moscow of deliberately cutting flows to Europe. Kiev has said the EU should send a signal to the Kremlin that it cannot bully its pro-Western neighbours.

Worries about the impact of the row on fuel supplies, coupled with the conflict in the Middle East, helped drive oil prices to a three-week high. Any gas shortages could drive up demand for oil products.

Gazprom's deputy chief executive, Alexander Medvedev, said the company was prepared to "negotiate day and night" with Ukraine to find a solution to the gas row, but that alternative gas supply routes were "a must".

"We are not only not close to a settlement, but we don't even see any negotiating partners at the table," Medvedev told a news briefing in Paris.

Gazprom is demanding Ukraine pay $450 per 1,000 cubic metres of gas after Kiev rejected a previous proposal of $418. The price is more than double what Kiev says it is willing to pay.

Ukraine's economy, among the worst hit by the global financial crisis, is forecast to contract by between 3 percent and 5 percent this year, leaving it little room to accept the higher gas prices Russia is demanding.

The hryvnia currency was quoted weaker at 8.15-8.5 to the U.S. dollar, from 7.9-8.3, but dealers said trade was very weak.

With no negotiations in sight, Russia and Ukraine have said they would bring cases against each other in a Stockholm arbitration court that deals with international commercial disputes. (Additional reporting by Guy Faulconbridge in Kiev and Amie Ferris-Rotman in Moscow, Orhan Coskun in Ankara, Jan Strupczewski in Brussels and European bureaux; Writing by Robin Paxton; Editing by Giles Elgood)

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Guest    (Guest) | 06.01.2009, 06:51
Its not really Ukraine that has a say. Usa is causing the problems with its governor yulia and victor. The Americans give the commands and their slaves obey. Its like Georgia, Georgia did not attack because it wanted to. It was ordered by its American master and obey their commands like a good slave.
Guest    (Guest) | 06.01.2009, 06:46
tuff luck Georgia you lost the war. You should have ignored the Americans and not made violence. Then Georgia would have many friends and better life. No one likes American ass lickers, what would stalin have said about his Georgia have no pride and kiss American rear end.
FREE GEORGIA    (Guest) | 05.01.2009, 22:38
while the EU cowards are bowing before putin in moscow, maybe they can raise the issue of russia ILLEGAL war and occupation of georgian provinces!!
We are not Afghan.
UN resolutions - approved & agreed upon by the rapists in russia - are being violated by russia in their occupation of SOVEREIGN georgian territory.

Where are all the GreenPeace and rock star celebrities now??
Nazar    (Guest) | 05.01.2009, 20:55
Correction: European countries get 80% of their gas through Ukraine, not one fifth.
Guest    (Guest) | 05.01.2009, 21:08
You mean 80% of Russian gas destined for Europe goes through Ukraine
Guest    (Guest) | 05.01.2009, 21:10
They get 25% of Russia, whereas 80% of 25% are deliverd through Ukraine.
Guest    (Guest) | 05.01.2009, 21:31
no no no - 20 % of the gas goes thru Ukraine - but this is 80 % of the Russian delivery
Our gAS MOSTLY COMES FROM nORWAY; uk AND hOLLAND
Guest    (Guest) | 05.01.2009, 21:41
No, 80% of Russian gas goes trough Ukraine. Another 20% go through Belarus and other rountes.

The EU has in total 25% from Russia, the other sources are from Scandinavian countries or Noth African.
Guest    (Guest) | 05.01.2009, 22:03
no, from European deliverers
Guest    (Guest) | 05.01.2009, 23:38
No Russia supplies Europe 20% of its gas consumption. 80% of gas destined for Europe travels via Ukraine. Ukraine has been siphoning off 20% of the gas that has been dispatched for European customers. Europe is currently paying 500$ where as Ukraine is asked to pay less then the market rate.

Ukraine has defaulted on its payments for gas consumed and in the process is now holding Europe to ransom .This is no different then the pirates off the cost of somalia.

Maybe Europe should negotiate to administer and manage Ukraine\'s gas transit supply and the payment of 100% of the gas that crosses Ukraine\'s boarders.Clearly Ukraine is not a stable or reliabke trading partner.
Guest    (Guest) | 05.01.2009, 19:26
Bei der SVP driften der Patrioten- und der Milliardaersfluegel je laenger je weiter auseinender. Bei den Delegierten ist das Verhaeltnis 9 zu 1. In der Fraktion vertritt aber mehr als die Haelfte eine nur am Profit der Lohndoempinggewinnler und Sozialisierung der Kosten ausgerichtete Politik. Dass sogar NR Schlueer mit einem schlechten Listenplatz Quotenneuen geopfert wurde bleibt unvergessen!
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