Tuesday, January 20, 2009

Russian natural gas began to flow to Ukraine on Tuesday after a suspension of nearly two weeks that left large parts of Europe, with cold and dark, highlighting the vulnerability and dependency of the continent against the Russian fuel.


Russian gas monopoly Gazprom began pumping gas to Ukraine at about 10:30 Moscow (0730GMT), said spokesman Boris Sapozhnikov by telephone from the station to measure Sudzha. Executives at other stations on the Ukrainian-Russian border, Pisarevka, also confirmed that it was getting gas.


Officials noted that the supplies could take 36 hours to cross Ukraine, which is the size of France, and to reach European customers. Europe gets about a fifth of its natural gas from Russia.


Russia suspended supplies on January 7 while the dispute with Ukraine over prices for 2009 and on accusations that Ukraine was stealing gas intended for Europe.


More than 15 nations in the Balkans and Eastern Europe were left fighting for alternative energy sources, with factories closed and millions of people shivering in unheated homes. Bulgaria and Slovakia, in particular, depend almost entirely on Russian gas.


Many questioned whether Russia and Ukraine could be reliable suppliers of energy and criticized by both nations in Europe have "hostage" during his contractual dispute.


Late on Monday, the two nations settled its lawsuit with the Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko, who witnessed the signing of an agreement between the heads of Gazprom and the Ukrainian company Naftogaz.


The agreement further states that Ukraine will receive gas at 20% discount on the average price this year in Europe, which Russia says is $ 450 per 1,000 cubic meters.


However, it is expected that natural gas prices for Europe to fall sharply this year due to reduced oil prices. For half the summer, Ukraine could be paying $ 150 per 1,000 cubic meters, said Ronald Smith, a strategist of Alfa Bank in Moscow.

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