Germany warns of Russian gas shortfalls

FRANKFURT (Reuters) - German energy firms warned on Tuesday there could be gas shortages in Europe's biggest economy if the dispute between Moscow and Kiev lasted much longer and sub-zero temperatures endured.

"Even our possibilities will reach their limits if these drastic cuts in shipments last and if temperatures continue to stay at very low levels," E.ON Ruhrgas Chief Executive Bernhard Reutersberg said.

Germany, which receives more than 40 percent of its gas from Russia, has been hit by a cold spell, with temperatures in some parts of the country reaching their lowest levels in almost 30 years on Monday night.

E.ON Ruhrgas and BASF's Wingas said they were seeing reductions to gas flows on Ukraine's transit routes to Germany and were turning to gas reserves, alternative shipping routes and other supplier countries.

This was the first sign that a deepening trench between Russia and Ukraine was affecting natural gas supply to Germany, after the government in Europe's biggest economy said on Monday it was still receiving 100 percent of ordered volumes.

Parts of south-east Europe had already been left without much Russian gas due to the ongoing row between Russia and transit country Ukraine over debts and prices.

Market leader E.ON Ruhrgas said it expected gas transit into Germany from Ukraine via Waidhaus on the Czech-German border to stop entirely in the course of Tuesday and warned that alternative measures would not be sustainable in the long term.

E.ON supplies two thirds of German gas, relying as its sector peers mainly on a mix of Russian and North Sea pipelines and the company said it could compensate shortfalls.

"Despite the reductions in shipments, E.ON Ruhrgas can safeguard supply to its customers due to preemptive measures, a broad procurement portfolio and ready storage facilities," E.ON Ruhrgas's Reutersberg said.