Bulgarian schools and some firms stay shut in gas row

By Anna Mudeva

SOFIA (Reuters) - Thousands of Bulgarians spent a freezing night without central heating, and some companies and schools did not operate Wednesday after Russian gas supplies were halted to southeastern Europe. About 12,000 households in Bulgaria's third largest city of Varna, on the Black Sea, and 3,800 in the northeastern town of Razgrad have been left in the cold because utilities need time to switch to alternative fuels, municipal officials said.

Heating has been sharply reduced in the capital Sofia despite sub-zero temperatures outside, and dozens of schools and kindergartens are not opening in the Balkan country of 7.6 million people.

Russian gas supplies to Europe via Ukraine have been cut because of a price dispute. Bulgaria, the poorest European Union member state, is particularly vulnerable because it is has no access to alternative pipeline routes.

"This is an absurd situation for the 21st century," Economy and Energy Minister Petar Dimitrov told national broadcaster bTV. "Russia and Ukraine must find a quick solution ... as the economies of half of Europe are at risk."

Dimitrov will hold an emergency meeting with big industrial consumers Wednesday to inform them about a schedule of reduced gas supplies.

The disruption forced two fertilizer producers, Neochim and Agropolychim, and brewery Bolyarka to shut down Tuesday.

Glass producer Kitka and several big bread producers halted production Wednesday. Other gas-dependent companies such as metals, chemicals and pharmaceutical producers said they might be forced to close down too.

Bulgaria's employers organisation said losses for business amounted to 500 million levs (247 million pounds) a day as a result of the disruption, hurting further the emerging economy which is already shrinking due to the global economic slowdown.