Tuesday, January 6, 2009

Ukraine and Russia will hold talks to end their bitter dispute over natural gas that Russia has cut supplies to six countries, said the head of the Ukrainian gas company on Tuesday. Meanwhile the authorities in Eastern Europe warned of an imminent emergency.

Bulgaria, which receives almost all its gas from Russia, said it will seek the reopening of a nuclear power plant after two towns were left without supplies.


The head of Naftogaz, Oleh Dubina announced that travel to Moscow on Thursday. He said he made the decision after speaking with Alexei Miller, CEO of Gazprom, Russia. The Russian state monopoly did not comment at this time.

Ukraine and Russia fought a dispute over pricing and payments due, and Russia cut supplies to Ukraine on January 1 but promised to supply its other European customers.


The energy dispute escalated on Tuesday when other countries reported a total breakdown.

Bulgaria, Greece, Macedonia, Romania and Turkey reported a lack of transmission of Russian gas for Ukrainian pipelines. Croatia said it would temporarily reduce the supply to industrial customers and Bulgaria said that gas was only "a few days."


Dimitar Gogov, director of Bulgargaz of Bulgaria, said the reserves were sufficient to supply the industry for a few days, and President Georgi Parvanov said Tuesday that Bulgaria will immediately begin preparations to reactivate a unit of the Kozlodui nuclear power plant .

Two 440-megawatt reactors were closed on 1 January 2007 under an agreement with the European Union. But Parvanov said it could be reactivated within the terms of the treaty with the EU, which allows its use in the event of an acute energy shortage.


In Brussels, the European Union described as "completely unacceptable" sudden gas cuts for some of its members.

In a statement accompanied by severe, the EU complained that the gas had been cut without "a warning and a clear contradiction with the assurances it gave the most important Russian and Ukrainian authorities to the European Union."


On Monday the EU had said that the dispute would not affect consumers in the coming weeks. But the sudden cut in the last days increased pressure to find a solution.

Ukraine reported that the Russian state company fell to third gas shipments to Europe, causing cuts.


Gazprom for its part accused Naftogaz, the Ukrainian state gas company, for the sharp drop in supplies. Russia had said it would reduce to 20% sending gas to Ukraine to compensate for what he described as the diversion of gas by Kiev.

"The responsibility of the possible changes in transmission of gas and reduction of supply to European consumers dependent on Naftogaz, Gazprom said.


The company distributes gas to Romania, Transgaz, said Ukraine stopped pumping gas through pipelines that supply these countries at about three o'clock (0100 GMT) Tuesday.

The Turkish energy minister, Hilmi Guler, confirmed the cuts and said the country was trying to compensate with other sources including another Russian gas pipeline passing through the Black Sea.


Russia supplies to Europe nearly a quarter of gas, of which 80% is sent to Ukraine.

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