Russian gas monopoly Gazprom cut supplies to Ukraine by at least a quarter on Monday over what it said were unpaid debts, just hours after the company chairman, Dmitry Medvedev, won Russia's presidential election. Gazprom pledged its exports to Europe would not be affected A quarter of Europe's gas supplies pass through Ukraine.
Gazprom has threatened to cut gas supplies during previous pricing disputes with former Soviet neighbours Ukraine and Belarus, but this is only the second time it has acted on the threat after a landmark cut in the New Year of 2006.
That brief disruption reduced supplies to Gazprom's west European customers, making them wary of any hint of a new row. The new reduction comes as Europe's heating season is nearing its end, unlike in 2006 when it came in the middle of winter.
"Gazprom is a reliable gas supplier, but we cannot and won't supply gas without payment," said Gazprom spokesman Sergei Kupriyanov. He said deliveries had been reduced by 40 million cubic metres a day.
Ukraine's state energy firm, Naftogaz, confirmed supplies had been reduced. It gave a figure of 46 million cubic metres a day, revised from an earlier report of 38 mcm, as it said Gazprom had slashed the supplies by a further 10 percent later on the day.
"Naftogaz has just received another notice from Gazprom saying gas flows have been cut by a further 10 percent. This amounts to reductions of 46 million cubic metres per day," Naftogaz spokesman Valenttyn Zemlyansky told reporters By comparison, Gazprom supplies Europe with around 410 mcm a day and Ukraine gets 135 mcm a day.
EUROPE NOT TO BE AFFECTED:
The European Commission said Gazprom had told it that flows to the European Union would not be harmed. "Gazprom have assured the Commission gas supplies to the European Union won't be affected," the EU executive body's spokesman told a regular briefing.
Poland's dominant gas group PGNiG said it had not noted any fall in pressure in its natural gas pipeline carrying Russian gas via Ukraine. It said it did not expect the dispute to last longer than a week or two and if a supply disruption did occur, it had stored gas to last it through the end of March.
Medvedev, 42, who is Gazprom's chairman and First Deputy Prime Minister, won over 70 percent of the vote in the presidential election on Sunday and will be the youngest Russian leader since Tsar Nicholas II when he is sworn in on May 7.