Russian state gas producer OAO Gazprom (GAZP.RS) has started redirecting natural gas volumes bound for Europe from Ukraine to alternative routes such as the Nord Stream pipeline and Belarus' pipeline system, the company said Friday.
Russian state gas producer OAO Gazprom (GAZP.RS) has started redirecting
natural gas volumes bound for
Europe
from
Ukraine
to
alternative routes such as the Nord Stream pipeline and
Belarus
'
pipeline system, the company said Friday.
"We are at the beginning of a big move to redistribute gas transit volumes
from
Ukraine
to
our Beltransgas unit and new subsea pipelines," a Gazprom spokesman said.
Ukraine
's
state oil and gas company Naftogaz said earlier Friday that
Russia
had
almost halved gas transit volumes through
Ukraine
to
Europe
, the
Interfax news agency reported.
"This is only the beginning," the Gazprom spokesman added.
Russia
is a
major supplier of natural gas to
Europe
and
ships up to 80% of its European exports through
Ukraine
's
pipeline system. However, conflicts over the price for transit and for
Ukraine
's
domestic use have led to supply disruptions on several occasions, which has
prompted
Russia
to
seek alternative supply routes.
Last year, Gazprom launched the Nord Stream pipeline under the
Baltic
Sea
to
Germany
and
secured full control of
Belarus
'
gas-pipeline operator Beltransgaz in exchange for a major discount on gas
supplies.
Russia
and
Ukraine
are
locked in talks over a new supply contract with
Kiev
pushing for cheaper gas in order to balance its budget, but in exchange for
lower priced gas
Moscow
is
aiming to gain control of
Ukraine
's
pipeline system.
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