Gas dispute: Ukraine closes pipeline
Gas shortage threat looms over Europe
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Wednesday, 07, Jan 2009 10:01
Austria, Slovakia and Czech Republic are the latest countries facing midwinter fuel shortages as Russia's natural gas dispute with Ukraine continues.
Europe relies on Russia for one-fifth of its natural gas but many countries are now finding themselves with their stockpiles diminishing.
The confrontation has escalated over recent days, with energy firms Gazprom for Russia and Nafotgaz for Ukraine engaging in the dispute with their governments watching over them.
Russian prime minister Vladimir Putin authorised the reductions to begin earlier in the week and late yesterday reaffirmed his justification to television viewers.
"Ukraine has stolen gas not from Russia, but from consumers who have bought the product and paid for it," the Reuters news agency quoted him as saying.
Russia is demanding Ukraine pay back the 'stolen' gas but Ukraine denies siphoning supplies from the pipeline.
It has now been forced to close the last pipeline down completely, the Itar-Tass news agency quoted Gazprom's export chief Alexander Medvedev as saying.
The European Union has condemned the consequences of the pricing dispute. A statement issued by the Czechs, who currently hold the EU's rotating presidency, and the European Commission demanded the immediate restoration of gas supplies.
A previous dispute in 2006 was resolved more quickly than the current impasse, which if unresolved could develop into a regional crisis.