RPT-Q+A-New factors drive Russia-Ukraine gas rhetoric

Wed Nov 11, 2009 6:34pm GMT
 
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(Repeats to add link to graphic on pipelines)

By Sabina Zawadzki

KIEV, Nov 11 (Reuters) - Europe is bracing itself for the possibility of another New Year gas row between Russia and Ukraine, which last year led to supply cuts, leaving hundreds of thousands out in the cold and grinding some industry to a halt.

A contract signed after January's three-week standoff should have clarified gas relations between the two countries and ensured there were no more rows about prices and supplies. This year, Ukraine has paid all its bills on time.

But analysts say the potential for a dispute ahead of a Ukrainian presidential election on Jan. 17 exists and, if it happens, it will be sparked purely by political motivation.

WHY SHOULD EUROPE CARE?

Europe receives about 20 percent of its gas from Russia flowing through pipelines running across Ukraine. Some southern and eastern countries are almost entirely dependent on the gas.

Russia cut gas supplies to Ukraine and, later, onwards to Europe as of Jan. 1 over a gas pricing dispute.  Continued...

 

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