Russian gas flow to Europe halted through Ukraine

Wed Jan 7, 2009 1:30pm GMT
 
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By Dmitry Zhdannikov and Pavel Polityuk

MOSCOW/KIEV (Reuters) - Russian gas flows to Europe through Ukraine shut down completely on Wednesday, reducing power to industries and homes in south-east Europe and disrupting supplies to major economies.

The shutdown, triggered by a price dispute between Moscow and Kiev, hit gas supplies as far West as France and Germany as Europe faced freezing mid-winter temperatures.

"Russia, which supplies 80 percent of its gas to Europe through Ukraine, has left Europe without gas. There is zero transit," said Valentin Zemlyansky, a spokesman for Ukrainian state energy firm Naftogaz.

Russian gas export monopoly Gazprom blamed Ukraine for the closure, and said it was raising supplies to the European Union and Turkey via alternative routes.

Despite those measures, the Ukraine shutdown cut Russia's supplies to Europe -- which depends on Russia for a quarter of its gas supplies -- by half.

Austria, the Czech Republic, Slovakia, Poland and Romania said their supplies were halted, joining a growing list of countries which have seen the flow of gas via Ukraine cut off. Some said they were getting Russian gas through other routes.

Several countries have taken emergency measures to eke out dwindling fuel reserves by switching to other energy sources.

The International Energy Agency said Bulgaria, Romania, Greece and Turkey would have difficulty providing electricity and heating if the cold weather and gas disruptions continued next week.  Continued...

 
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