Ambrosio Spinola
12-31-2005, 10:59 PM
http://news.monstersandcritics.com/europe/article_1072633.php/Russias_natural_gas_ultimatum_to_Ukraine_runs_out
Moscow/Kiev - The ultimatum from Russia's state-run gas concern Gazprom to the Ukraine over natural gas ran out at midnight Saturday, raising the spectre that the company could shut down the supply valve as early as 0700 GMT Sunday.
A Ukrainian official late Saturday said Ukrainian President Viktor Yuschenko rejected a last minute overture by Russian President Vladimir Putin to mediate on gas prices.
No concrete concessions had arrived in Moscow out of Kiev by midnight - the deadline set by Gazprom, according to the Interfax news agency early Sunday morning in Russia.
Gazprom insists Ukraine pay 230 dollars per 1,000 cubic metres - the world price - and have threatened to turn off all natural gas supplies to Ukraine if Kiev fails to sign a contract by 10 a.m. on January 1. Ukraine, which currently pays 50 dollars, says it won't pay more than 80 dollars per 1,000 cubic metres.
Putin suggested late Saturday afternoon in a televised discussion with Gazprom staff that Ukraine pay 50 dollars for the first three months of 2006, and 230 dollars thereafter. Ukrainian government spokesmen Valentin Mondrievsky said Kiev was prepared to pay full price, but wanted a longer grace period than three months, and a price lower than 230 dollars.
Late Saturday, Urkaine's Energy Minister Ivan Platschkov said a contract would be sealed in the first quarter of 2006. 'The gas will flow,' he reassured the public in remarks.
A shutoff of the Gazprom flow to Ukraine could have a potentially disastrous effect on European natural gas markets, as more than 80 per cent of Russian natural gas exports to Europe travel through Ukrainian pipelines.
The danger of economic problems in the event of a shut-off is worst in Slovakia, Hungary, Poland, and the Czech Republic, which depend on Russia for between 70 and 100 per cent of their natural gas supplies. Overall Russia supplies one-third of the continent's natural gas needs.
Moscow/Kiev - The ultimatum from Russia's state-run gas concern Gazprom to the Ukraine over natural gas ran out at midnight Saturday, raising the spectre that the company could shut down the supply valve as early as 0700 GMT Sunday.
A Ukrainian official late Saturday said Ukrainian President Viktor Yuschenko rejected a last minute overture by Russian President Vladimir Putin to mediate on gas prices.
No concrete concessions had arrived in Moscow out of Kiev by midnight - the deadline set by Gazprom, according to the Interfax news agency early Sunday morning in Russia.
Gazprom insists Ukraine pay 230 dollars per 1,000 cubic metres - the world price - and have threatened to turn off all natural gas supplies to Ukraine if Kiev fails to sign a contract by 10 a.m. on January 1. Ukraine, which currently pays 50 dollars, says it won't pay more than 80 dollars per 1,000 cubic metres.
Putin suggested late Saturday afternoon in a televised discussion with Gazprom staff that Ukraine pay 50 dollars for the first three months of 2006, and 230 dollars thereafter. Ukrainian government spokesmen Valentin Mondrievsky said Kiev was prepared to pay full price, but wanted a longer grace period than three months, and a price lower than 230 dollars.
Late Saturday, Urkaine's Energy Minister Ivan Platschkov said a contract would be sealed in the first quarter of 2006. 'The gas will flow,' he reassured the public in remarks.
A shutoff of the Gazprom flow to Ukraine could have a potentially disastrous effect on European natural gas markets, as more than 80 per cent of Russian natural gas exports to Europe travel through Ukrainian pipelines.
The danger of economic problems in the event of a shut-off is worst in Slovakia, Hungary, Poland, and the Czech Republic, which depend on Russia for between 70 and 100 per cent of their natural gas supplies. Overall Russia supplies one-third of the continent's natural gas needs.