David Charter in Prague, Adam LeBor in Budapest and Helen Womack in Moscow
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Governments across Europe declared states of emergency and ordered factories to close as Russia cut all gas supplies through Ukraine yesterday in their worsening dispute over unpaid bills.
José Manuel Barroso, the European Commission President, accused the two countries of taking the EU’s energy supply “hostage” amid a cold snap across the Continent, and urged them to reopen the pipelines immediately.
Schools and factories were closed and trees were felled to keep home fires burning after Russia turned off the gas taps to more than a dozen countries. It was a clear demonstration of the dependence of the Continent on Russian gas supplies.
Despite temperatures as low as minus 27C and the threat of heating cuts to millions of households, Moscow said that it had no choice but to cease supplies because Ukraine, the country through which 80 per cent of Russian gas bound for Europe flows, had closed its pipelines. The claim was denied by Kiev.
Countries tapped into their reserves and urged the use of alternative fuels but at least 15,000 households in Bulgaria – which gets 92 per cent of its gas via the Ukrainian pipelines – found their heating cut off overnight.
Slovakia’s Government followed Bulgaria by announcing that it may have to restart a mothballed Soviet-era nuclear power plant.
The Balkan states, which rely almost completely on Russian gas and have failed to develop modern infra-structures or alternative energy sources, have been the hardest hit at the time of the Orthodox Christmas.
In Sarajevo, the capital of Bosnia-Herzegovina, there were bitter memories of the Bosnian conflict from 1992-95, when the population cut down trees to try to stay warm or bought coal on the black market.
Sven Alkalay, the Bosnian Foreign Minister, said: “Four million of our citizens are in danger.” Almir Becarevic, the manager of the state gas company, said: “If this lasts it could turn into a humanitarian disaster. We pray that someone can find a solution.”
To try to restart supplies, the EU proposed yesterday that it should send independent monitors to watch the dials on the pipes at Ukraine’s borders. Russia claims that Ukraine is taking gas it has not paid for from the pipelines, reducing the onward supply to Europe. It has responded by cutting supplies in the pipeline by the amount it says Ukraine is stealing.
By checking how much gas is entering Ukraine from Russia and then measuring how much emerges at its western borders with Europe, the EU hopes to establish who is to blame for the shortages.
Mr Barroso said that he had agreement in principle for the process from Vladimir Putin, the Russian Prime Minister, and his Ukrainian counterpart, Yuliya Tymoshenko, who will send officials to Brussels today to thrash out the details. Mr Barroso spoke to both leaders yesterday, but he said they continued to blame each other. “Prime Minister Putin told me that Russia is providing the gas destined for the EU, Prime Minister Tymoshenko told me that they have created no problems with transit through Ukraine,” an exasperated Mr Barroso said. “The conclusion is clear: if both Russia and Ukraine behave as they say they are behaving, there should be no problem.”
He added: “If Ukraine is trying to be closer to the European Union, it should not create problems when it comes to the supply of gas to the EU.”
Yet 12 countries received no Russian gas at all yesterday: Austria, Bulgaria, Slovakia, the Czech Republic, Bosnia, Croatia, Greece, Hungary, Macedonia, Romania, Serbia and Turkey. France, Italy, Germany and Poland reported that their supplies from Russia were markedly down.
The International Energy Agency, which is the energy-monitoring and policy arm of the Organisation for Economic Cooperation and Development, said that the situation was “completely unacceptable, given that European customers are not a party in this dispute.
“Despite the reassuring statements late December by both parties that supply to Europe would not be interrupted, supplies have now come to a complete halt,” it said. “The interruption is creating hardship during the coldest weather Europe has faced within a number of years.”
The US showed who it blamed for the crisis when Stephen Hadley, the National Security Adviser, warned Moscow that using its energy exports to threaten its neighbours would undermine its international standing.
Amid mounting fears of shortages in Germany and France, Britain has begun to export emergency supplies of gas to Europe. The flow in the pipeline connecting Britain to Belgium and beyond, which normally imports gas to Britain, was reversed late yesterday after prices on the Continent rose.
Analysts said that the weak pound was encouraging European suppliers to use Britain as a cheap transit route for Norwegian gas.
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The Ukraine, like most of eastern Europe, has huge resources of coal. Europeans should develop these resources and not be so reliant on countries like Russia
Gary Hudson, Calgary, Canada
Actually, this situation gives all of us a pretty clear picture of what is going to happen in about 5 years when the effects of Peak Oil (estimated by experts to be 2005) start to show up in the market place. In 5 years, oil and gas "restrictions" like this will be commonplace.
Ed, Dallas,
Sorry Bob Copeland, I'm not with you(as an American), while I do genuinely feel sorry for the people of Eastern Europe, my sympathy will not be extended to the people of France, Germany or even Britain(the lefties). If you believe the comments about America...your part of the problem!
Glenn, Brooklyn, US
I'm an American, writing this from Indiana. Every negative comment about America that I have read here is true. As an individual, I'm sorry, but I have as much control over our government as you do yours. It's the people of the world vs. the politicians. Let's remember that and not hate each other.
Bob Copeland, Carmel, usa
Two words. Energy diversification.
Ben, York,
As another newspaper article states that France has 122 days of emergency gas supplies compared to Britains approximate 15 days. If France has so much more emergency gas available, why on earth are we exporting gas to Europe?
Stephen Phillips, Woking,
Those making sarcastic remarks and revelling in the fact that certain EU countries have had their gas supplies turned off (ironically, it seems to mostly be our American ''allies'') should be ashamed of themselves. People die from not having heat in their homes during winter.
Rebecca, London, England
Why so many Americans posting comments on the website of a British newspaper? Oh I forgot... your newspapers aren't worth reading and you have to look to Europe to find out what's really happening.
Robert, Manchester, UK
Not to ruin your fun, but this site is actually hosted in America.
Jill, Marseille, France
Who needs wars when Russia can stop industry and cause misery to thousands by their beligerence ?
Who needs wars when America through its greed ridden banking and Wall St institutions can bring even greater misery, demolish all industrial & commercial activity, causing hardship around the world !
Phil de Buquet, Newport,
the russian pipelines are in danger too, not just the ones in ukraine. europe is just a bargaining element for once - the Ukraine wants to join the EU so they should play nice; Russia needs the money from the gas they sell to the EU so they should give in; the EU itself doesn't really get a say...
hermione, brussels,
And for their next trick all these exorbitantly overpaid 'managers' and politicians are going to attempt to run something in a brewery. Don't hold your breath, just shut up and pay and give them your votes.
Terry, Guildford, UK
I agree with Lewis, this is an Act of War. Why is our gas under their tundra anyway ?
Nick M, St Ouen, France
On December 4th, Putin contradicted Gazprom & Ukraine officials and stated that Europe's Gas supplies would be disrupted.
http://euobserver.com/863/27238
Why does no reporter worth his salt uncover this plot.
Richard, arest,
Russia is the enemy of Western Europe.
Read -
http://euobserver.com/863/27238
EU commission fears gas system collapse
Today @ 09:19 CET
The Russian gas deliveries halt could lead to a technical collapse of the entire gas pipeline system in Ukraine, unnamed EU experts have told Financial Times
Richard, Bucharest,
So Martin, It's now you turn to the Greens for an answer. Shame we didn't invest more time and money sooner isn't it?
Lauren, Portsmouth, UK
So where are the greens to explain to us how to use alternate sources of energy, such as wind, solar etc. Or is it not sustainable and a reaslistic option. Oh well back to the good old fossil fuels and nuclear energy then.
Martin, Bath, UK
If I am to understand this - the UK pays the highest prices for gas but also export it to Europe to be sold at a lower price?
PAUL, LONDON, uk
I hope those EU governments that supported the US's (NATO) encirclement plan of Russia (Ukraine and Georgia to join NATO plus missiles in Czecho and Poland) will now explain to their freezing citizens how this (Rumfeld/Cheney) plan was supposed to work again.
dhome, sydney, australia
Russia's economy has crashed just like ours what better was to ramp up those gas prices :(
mrhackit, HOLT NORFOLK, UNITED KINGDOM
Why so much talk when it clearly states: "To try to restart supplies, the EU proposed yesterday that it should send independent monitors to watch the dials on the pipes at Ukraines borders. Russia claims that Ukraine is taking gas it has not paid for from the pipelines, reducing the onward supply"
Nick, London,
For all of us to depend on the middle east/russia for fuel is foolish and invites instability. The only economic stimulus we should be doing is to spend Billions right now to gain energy self sufficiency. Until we can tell the russians and the middle east to keep their oil we will be at their mercy.
Mike in Florida, Tampa, USA
In the future, house will generate their own electricity and water gaining independence from industry. Cars will be all electric with alternators that charge the batteries as you drive, independence from oil.
Dennis, Midland TX,
Why all you people are blaming Russia for gas crisis?
Russia sold the gas to Ukraine on $250 for cubic meter, while it sells the same gas to Europe on $418 for cubic meter.
From 2009 Russia wanted to sell gas to Ukraine on Europeen price, but Ukraine didn't accept it.
Paul, Moscow, Russia
Russian had 2 contracts with Ukraine:
1. gas export to Ukraine
2. gas transit to Europe.
The first contract expired and their is no new contract. Ukraine suffered gas crisis and then started stealing gas from transit pipelines.
Paul, Moscow, Russia
Lewis Zelvin: how on earth are you being tyrannized by the former USSR in Sacramento, CA. Did they cut your gas off too?
No money, no gas, period.
Tom Lowe, San Diego, USA
Let the EU lend top priority to the construction of the South Stream and Nord Stream pipeline projects. Ukraine (and Poland) are too unreliable and unpredictable for allowing that country to be the main transit country for EU destined gas. We simply have to get around them.
Kathy, Rotterdam, NL
What a business plan!
Don't sell your gas and push your customers to other sources of energy.
Those clever Russians.
Marco, Paris, France
This is the real Russia.Welcome.
Daniel, London,
Russia is just flexing its muscles. Please notice that everybody in Europe "shut straight up" about Georgia and Macedonia as soon as energy started to become an issue. Its gonna be an interesting time now the Great Bear has become Nationalist and ring wing rather than left and communist.
Simon, London,
Fossil fuels are finite resources, so unsurprisingly they will run out sooner rather than later. It's high time to develop alternative sources of energy, which would also make us independent from Russian gas.
Paulina, London, UK
Why so many Americans posting comments on the website of a British newspaper? Oh I forgot... your newspapers aren't worth reading and you have to look to Europe to find out what's really happening.
Robert, Manchester, UK
Lend the Ukrainians the cash to pay off the bill, get the gas flowing again the rest of Europe then start to reduce dependency on Russia,NB Russia is changing its constitution so next time round Putin can stay in power as president for 6 years.Start now
bob holmes, axbridge , England
A very worrying state of affairs. Alternative and independent fuel sources should be at the top of most political agendas this is not acceptabled for developed countries to find themselves in this situation.
Alex Spencer, Sanderstead, UK
"Britain has begun to export emergency supplies of gas to Europe. "
If we have so much to spare, why were we in Britain getting in piped in from Belgium in the first place?
Will energy prices in the UK rise again as it is much more profitable for our energy companies to flog to desperate Europe?
Charles, Birmingham, United Kingdom
Surely this proves the case that energy needs to be liberalised across europe and that europe's dependence on russian gas is a major strategic mistake. The fact that Helmut Schmidt is a Board member of Gazprom only reinforces the fact that Germany and other countries are dangerously out of touch.
james murphy, London,
I agree with Marie the EU should apply pressure on Ukraine. Their application to join should be considered carefully or not at all.
Russia has every right to cut supplies, after all it's a business deal at the end of the day. So get the bill paid and gas flowing again.
gabrielle andrews, Worthing, Sussex
In this way two Slavian-rooted states are going to prolong a winter holidays in European countries.
Konisbay, Nukus, Karakalpakstan
This should, at last, convinve western european governments that the Russian government cannot be trusted as either a military of political force and that all measures should be taken to ensure that alternative fuel supplies are developed, including nuclear.
David Leslie, Perth, Scotland
It's simple - Russia has shown for whatever reason to be an unreliable supplier of energy. Every Country should bear this in mind when entering into contracts for energy supply with Russian companies. France's long standing policy of relying on nuclear power looks very sensible now.
Neill, Maidstone, UK
I am puzzled at the attack on UK by someone whose country has only recently recognised that destroying great swathes of Hardwood Forests contributes to Global Warming.
The UK in fact gets about 10% of its supplies from Russia and is as shown above currently exporting gas to Belgium.
Alex Beech, Anstruther, Scotland
Better get those nuclear power plants built as quickly as possible!... The Russians have got us by the short & curlies
Jeff, Someset,
For those of you who derive some satisfaction from the idea of Brits freezing in their homes, the UK is not reliant on Russian gas - most of our supply comes from Norway. Do your homework and aim your spiteful little remarks elsewhere.
Sophie, London,
It was the biggest mistake ever to supplied some years ago thousand tons of grain to the oh so poor russians. Now they are back in their role of power.
Anton, Vogelwaarde, The Netherlands
Lewis, when were you last "tyrannized by the Former Republics of the Soviet Union"?
If you want to fight the Russians please do so via Alaska. I would rather take this as a prompt to source other supplies of energy. Russia may learn that if you don't look after your customers, someone else will.
Simon, London,
I can't believe you guys were sooo stupid as to give a Russian company this much control over your energy supply? Please, tell me again how we ought to be more like you? But wait a second while i turn the thermostate down, it's a little warm in here my brilliant European cousin's. Stay warm guys:)
Ed Small, Greenville, North Carolina, usa
I have very little sympathy for Europe, especially the UK where obsolete and inappropriate neo-classical economics principles drive policy. We are 3 or so years into a major multi-faceted energy crisis that needs an intelligent global response based on all the evidence, not just voodoo economics BS
Rod Campbell-Ross, Sydney, Australia
You countries have no one else to blame but yourselves. After so many years you conned yourselves to believing you could trust the political mandarins in Moscow. Explain to your democratic electorate!! Why are you so stupid to rely so heavily on energy supplies from one source for your people?
Jonthan T-M, Malta,
Those Socialist Europeans shouldn't worry about it being too cold. They are always crying about global warming, so how could they possibly be cold?
From the mouth of a Dane (Living in the U.S. of A)
dia mortensen, New York, USA
Why doesn't EU make Ukrane pay for the gas...?
Marie, Syracuse, USA
Reinforces Turkey's EU bid as an alternative route for Central Asian energy, after all much of the gas in the pipes come from there via Russia.
Ariel Everard, Beijing, China
Why is Russia characterized as tyrannical when it is simply exercising its free-market right to control the sale of its own products? Whose fault is it that other countries have become completely dependent on their gas? Can military force really be justified?
Joe Harenski, Pittsburgh, USA
Lewis, please don't take up diplomacy, War is not the way to solve problems with fuel, surely Iraq has at least taught us that!
Emma, London, England
This should be interpreted as an "Act of War". I believe that NATO should mobilize its forces and prepare to attack the Ukraine and /or Russia. At the very least put forces on the ground to reopen the Pipeline. How long are we going to be tyrannized by the Former Republics of the Soviet Union?
Lewis Zelvin, Sacramento, USA
One can only assume that once the monitors are in place, the gas will start flowing again. It would be too expensive to cheat for whoever is cheating.
Sergei, Moscow, Russia