Russia, Ukraine Resume Talks After Gas Crisis

Russia, Ukraine Resume Talks After Gas Crisis
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Τετ, 12 Μαρτίου 2008 - 05:16
The state gas monopolies of Russia and Ukraine resumed talks in Moscow Wednesday on a payment dispute that led OAO Gazprom (GAZP.RS) to slash natural gas supplies to Ukraine last week, an official said.
The state gas monopolies of Russia and Ukraine resumed talks in Moscow Wednesday on a payment dispute that led OAO Gazprom (GAZP.RS) to slash natural gas supplies to Ukraine last week, an official said.

"The talks have started," a spokesman for Ukraine's Naftogaz, Valentin Zemlyansky, told AFP. A spokesman for Russia's Gazprom declined to comment.

The European Union has expressed concern over the stand-off, which bears some similarities to a 2006 price row that led Russia briefly to cut off gas to Ukraine, disrupting supplies in several European countries.

Europe relies on Russia for around a quarter of its gas supplies, and some 80% of those imports come through pipelines that cross Ukraine. There have been calls in E.U. capitals to reduce Europe's reliance on Russian gas.

In the current dispute, Russia wants Ukraine to pay back alleged unpaid debts for gas imports in 2008, while Ukraine wants to get rid of an opaque system of intermediaries for gas payments to Russia.

Gazprom reduced gas supplies to Ukraine by 25% on March 3 and by an additional 25% on March 4 in a bid to pressure Kiev but was forced to back down after Ukraine warned it could divert gas earmarked for Europe.

Gazprom and Naftogaz announced the resumption of supplies on March 5.

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