David Charter in Brussels and Philippe Naughton
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Large parts of Europe woke up today to find that Russian gas supplies had been cut off on the coldest day of the year as a dispute between Moscow and Ukraine over payment rates took a dramatic turn for the worse.
Six countries reported a complete shut-off and Bulgaria – where midwinter temperatures are reaching minus 15C – said that it had enough gas "only for a few days". "We are in a crisis situation," the Bulgarian economy ministry said in a statement.
Also cut off were Greece, Macedonia, Romania, Turkey and Croatia, which said that it was temporarily reducing supplies to industrial customers.
Ukraine and Russia each blamed the other for the shortages. Ukraine’s state gas company Naftogaz said the Russian gas giant Gazprom had sharply reduced its shipments to Europe through pipelines crossing Ukraine, triggering the cuts. “Our Russian partners are playing cat and mouse with us,” said Oleksandr Shlapak, economic adviser to Ukraine’s president.
In response Gazprom said that Naftogaz had unilaterally closed three out of four transit gas pipelines this morning.
The situation prompted a sharp complaint from the European Union and the Czech presidency. The Czech Republic, which relies on Russian oil for 80 per cent of its needs, is among those Central and Eastern European countries most vulnerable to the disruption of supplies.
"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," the EU said in a statement.
"This is completely unacceptable. The Czech EU presidency and the European Commission demand that gas supplies be immediately restored to the EU and that the two parties [Russia and Ukraine] resume at once negotiations with a view to a definitive settlement of their bilateral commercial dispute."
Kiev said that Gazprom, the Russian state gas company, had cut the flow following Vladimir Putin’s threat yesterday to punish Ukraine for allegedly stealing fuel it is supposed to allow to transit through its pipelines en route to Europe.
The Bulgarian Government called a crisis meeting at 7am this morning and appealed to all consumers to limit their usage as the gas stopped flowing at around 3.30am on the coldest night of the year, as it did elsewhere in the Balkans.
Austria said that supplies were down to just 10 per cent of the expected amount while Hungary said that the flow was below 20 per cent of usual rates and the Czech Republic reported shortfalls.
Most of the countries which rely on gas from Russia delivered through Ukrainian pipelines have built up substantial reserves for the winter following a similar dispute over payments in 2006.
But that was over in a matter of days whereas the present row seems far from being resolved. It began on New Year’s Day when Gazprom began subtracting Kiev’s share of the gas it pumps through Ukraine to Europe.
Ukraine’s gas company Naftogaz, which denies siphoning off any gas illegally, is now warning that supplies to Germany – which relies on Russian gas for 42 per cent of its needs – will also suffer as the impact of the dispute spreads.
A European Union delegation is in Kiev to discuss the crisis with senior Ukrainian officials and hopes to meet Gazprom officials later today. Mirek Topolanek, the Czech Prime Minister, said today that the EU could call the Russians and Ukrainians to an emergency summit to sort out the disupte.
Valentin Zemlyansky, a spokesman for Naftogaz, warned ahead of the meetings that Europe would face problems due to the Russian cuts.
“They have reduced deliveries to 92 million cubic metres per 24 hours compared to the promised 221 million cubic metres, without explanation. We do not understand how we will deliver gas to Europe,” Mr Zemlyansky said.
“This means that in a few hours problems with supplies to Europe will begin,” he added.
Gazprom has said that the company would do its best to make up for the shortfalls by sending more gas to Europe through Belarus, Poland and Turkey.
The EU depends on Russia for around a quarter of its total gas supplies, 80 per cent of which are pumped through Ukraine.
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Ukraine really bought russian gaz much cheaper than EU.
But Russia (and finally EU) instead pay very little for transpostation via Ukraine. Besides that Russia quarters its military naval fleet in Ukraine nearly free of charge.
Yaroslav, Lviv, Ukiraine
I cannot understand why everyone is so upset. I thought global warming was the problem.Don't we all love this cold?
DaveH, Seattle, USA
People should stop burning fuel. Wear a coat indoors and save the planet. Cut back on your carbon footprint.
keith bentham, Wigan, uk
Its America's fault, of course. Al Gore and his footstep followers, intoxicated with global warming cool aid, litigate oil and gas producers ad infinitum, so rather than supplying Europe with gas and using our own oil, we gobble up the world's supply...
Sorry about that y'all
Al, HEMET, USA
We're swimming in natural gas here and we'd be happy to share. Kind of expensive to liquefy it for shipping, tho.
jg, Orange County, USA
I wonder what Obama thinks? Methinks Ukraine will be back in the bosum of the Kremlin shortly.
Wasabi, Austin, US
Never rely on Russian gas specially in Winter,nobody will learn?
bernard, san antonio, USA
Jim, you're ABSOLUTELY right! We will handle this without your help. After all any US involvment into foreign affairs seems to take form of airstrikes. The pipeline is already quite old. It will not stand too long against such assistance :)
Alex, Moscow, Russia
I sense a very strongly worded letter coming out of Brussels. This will truly show the power of the EU 'soft power.'
IMHO, let's let the mighty EU handle this all by themselves. We spent lives and treasure to keep the bear away while the euros spent on social programs for immigrants..good luck.
Jim, Sant Barbara, USA
Martin, I think you are missing something in this situation. Russia fulfills it's obligations to send gas to Europe but it disappears somehow on Ukranian territory. Is it Russian fail that Ukraine can't deliver what it is obligated to deliver? I don't think so. So, who is ureliable after all?
Alex, Moscow, Russia
Europe can bellow all it likes, the Russians have the whip hand now. We knew it could happen but didn't prepare. Instead of using the time to develop clean safe energy via renewables we are forced to go nuclear. Or was it gov policy to leave it until there was public panic and no other option?
Frank, Norwich,
Alex, if anything this clearly shows that Europe should rely with its energy needs on a country like Russia as little as possible. Quasidictatorship uncapable to get past its past and above all uncapable to keep political balast out of the business is a dangerous and untrustworthy partner.
Martin O., Kolin, Czech Rep.
Think of all the carbon emissions the europeans will be saving. While they are shaking and shivering they will have the warm fuzzy feeling that they are saving the planet. Al Gore will be pleased. Don't ask america for help since our give-a-damn is broken.
Jim, Bishop,
chickens coming home to roost
Martin D, London,
Build the nukes and quickly! Electrify the railways, install electric heating in homes - the French had the right idea - clean, reliable nuclear power is the answer! Saves us having to rely on the Russkies or the Middle East. Gets my vote any day!
Jim, London, UK
Maybe Obama should save a few trillion of his stimulous package for fighting the next war. How long will Europe stand for this aggression from Mr. Putin, and how long until they come begging to Uncle Sam to help them fight the bad guys?
Harry Slikker, Lompoc,
Thank God we have some of our own left! Get building Nukes to get long term power independence, and in the meantime refire old coal and build new coal for the short term. EU mantras on Global Warming should be binned until energy stability and independence is achieved. Its an Emergency!
Danny, Manchester,
Ukraine has been accumulating debt for unpaid Russian gas for years- all while paying a HIGHLY SUBSIDIZED price nearly a quarter of what the rest of Europe pays, assuming Ukraine TRULY want to be the part of Europe. Ukraine is failed as a business partner after many compromises were offered to it.
Michael, Toronto, Canada
Lets take all the money we send to other countries as aid for one year and use it to develop renewable energy in the EU, take us off our dependency on fossil fuels and with it countries who we should not be plying money to... problem solved, next question?
Graeme, Edinburgh,
Leo, this clearly shows that Russia and Europe should not rely on country like Ukraine for transporting gas to clients in Europe. They want our gas but they don't want to pay for it. So, they use their position of transit state for unfair play.
Alex, Moscow, Russia
Funny how Ukraine was able to send 2 billion dollars worth of war materials to Georgia but is unable to pay for gas and oil for its own people. What an irresponsible leader Yushenko has been...time for him to go.....or maybe he can borrow the money from the Americans.....lol
dgr, Windsor,
Funny you must say that. EU continuously backed Russia, in fact look at Ukraine's NATO membership / EU talks - it was halted exactly because of Russia's demands. Fine, Ukraine learned the lesson fast. Obviously it makes sense for Ukraine to follow it's own interests in this situation. And they do.
Jim, Ottawa, Canada
Seems like good news for Germany as they will be looking for an excuse to lay off workers as the crash deepens and this will help reduce industrial output without provoking the inevitable ire of the unions.
Alan, Salina, Malta
The unfortunate practice of intimidation of neighbouring countries by Russia is continuing... All in the wake of its invasion of Georgia.
Leo, Orlando, USA
This clearly shows that Europe should not rely on a country like Russia for their energy supplies. The Russians will do anything to bully their neighbours. Being reliant on Russia is a nightmare situation.
Stu, Leicester,
Again Ukraine is holding Western Europe hostage. Russia even during the cold war has always been a very reliable supplier. The murky Ukraine power struggles are complicating this matter. Gazprom is simply applying the same approach to pricing as the Dutch Gasunie.
J.Rijntjes, Lelystad, Netherlands
This is justifiable action by the Russians, as they have not received any backing from Europe in their previous disputes with Ukraine. Europe and the Ukraine can only blame themselves for this mess
Tom, London, UK
Serves them right for relying on such an unstable regime.
Putin is almost as bad as Brown.
Sid Jacques, Durham,