Ukraine - Gazprom spat continues, Ukraine may be cut out of supply line

The row over natural gas supply between Russian Gazprom and the Ukraine continues, with the Russian gas supply giant accusing the Ukraine of nicking extra gas to the tune of 438.3 million cubic meters intended for Europe during the recent bitter cold snap. The figure comes from an unnamed Gazprom source, and the Ukraine continues to deny the accusation, saying the country used gas reserves to maintain supply to Europe at agreed levels.

Gazprom chief Alexey Miller met Russian President Dmitry Medvedev to discuss gas supplies to Europe and planned new routes. During the meeting Medvedev ordered Gazprom to continue negotiations with the Ukraine. Gazprom's Miller said that every effort had been made to maintain supplies to Europe, but “On some days, up to 40 million cubic meters of gas were stuck in Ukraine. No doubt that it inflicted both financial and reputation damage on Gazprom. Meanwhile, there is no efficient mechanism to control the behavior of Naftogaz Ukrainy in such a situation.” Now the Russian gas monopoly is suggesting cutting the Ukraine out of European supply routes, by adding new gas lines and increasing capacity in existing streams. “South Stream to full capacity, Nord Stream with additional lines and our existing capacity through Belarus and the Black Sea will reduce Ukraine’s importance for transit to zero,” said Gazprom spokesman Sergei Kupriyanov, quoted by Bloomberg, in an e-mailed statement yesterday ( February 22 ). OAO Gazprom is a Russian Gas distribution monopoly and a major supplier of natural gas to Europe. The company runs several major pipelines from Russia into Northern and Southern Europe, and plans extensions and new pipelines in the coming years. Liam Lever, liam@romania-insider.com