Win 100 iconic DVDs
For five days argument has raged, tensions have risen and millions in southeastern Europe have shivered. Russia’s abrupt shut-off of all gas supplies to Ukraine echoes the pipeline row of three years ago. As in 2006, winter is adding urgency to a commercial spat that has become a political confrontation. The argument should strengthen the resolve of all Europeans to lessen their dependence on Russia for vital energy supplies.
The shutdown is not unexpected. For months, Moscow and Kiev have indulged in brinkman-ship as they argued over a new gas contract. Gazprom, the giant state-owned supplier, demanded a new price of $450 per 1,000 cubic metres, a figure that Ukraine’s leadership dismissed as “utter nonsense”. Kiev had already rejected an earlier proposal of $418, and said that, with its economy due to contract by up to 5 per cent this year, it could pay only $250, and only if Gazprom more than doubled its payments for the transport of gas destined for Europe.
Both sides were counting on the likely outcry from consumers to bolster their case, and both have since been lobbying Western opinion furiously. Some 80 per cent of all Europe’s gas imports from Russia go through Ukraine. Gazprom insisted that these would not be affected. Inevitably, however, gas supplies have been hit: Greece and Romania yesterday reported a drop of around 30 per cent, with Poland and Hungary also noting smaller reductions.
Moscow has accused Ukraine of stealing gas destined for these countries. Russia is threatening legal action. It has appealed to the EU to monitor supplies and put pressure on Ukraine. Kiev has insisted that it needs to divert some gas to maintain pipeline pressure. Ukraine accuses Moscow of manipulating supplies and railed against what it calls Russian bullying prompted by Ukraine’s efforts to seek Nato membership.
Western Europe, caught in the crossfire, is anxious not to take sides. In truth, both sides are to blame. Ukraine’s argument that it cannot pay is undermined by the logic of market prices for energy. The bickering between President Yush-chenko and Yuliya Tymoshenko, his rival for the leadership of the faltering Orange Revolution, has thwarted any compromise. And Ukraine has almost certainly diverted some of the gas destined for others in the hope of stoking up anger against the monopoly supplier. Ludicrously, Naft-gas, its state-run energy firm, is attempting to blame tiny Moldova for siphoning off transit gas.
Whatever its legalistic arguments, however, Moscow’s actions are deeply damaging to its perceived reliability as Europe’s energy supplier. Time and again, Vladimir Putin has used his country’s resources to punish or blackmail those former Soviet republics, especially Georgia, daring to challenge Moscow’s hegemony. For all the emollient smiles of Aleksandr Medvedev, the head of Gazprom, as he tours Western capitals, the EU is not fooled by protestations of purely commercial relations.
Like the Arabs’ oil embargo of 1973, Russia’s periodic confrontations have forced the West to seek other sources and types of energy as swiftly as possible. Moscow is naturally not obliged to sell its gas below market price. But turning off the taps turns off not only supplies but trust, reliability and long-term credibility.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
c£100,000 + car, bonus & bens
Lord Search & Selection
Midlands
Competitive salary + NHS pens
The Council for Healthcare Regulatory Excellence (CHRE)
London
Not Specified
The Sheppard Trust
London
£31,842 – £38,378pa
Charity Commision
London, Liverpool or Taunton
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.