Russia s state-run natural gas monopoly Gazprom on Sunday halted deliveries to Ukraine in a price dispute and later accused the country of stealing gas that goes through Ukraine on its way to Western Europe. Gazprom supplies about half the gas consumed in European Union countries. Most of that goes through pipes that cross Ukraine and the dispute has raised worries of widespread supply disruptions throughout much of the continent. Ukraine is taking some for itself said Gazprom spokesman Sergei Kuprianov. Gazprom says the only gas being put into pipelines headed for Ukraine is intended for European customers. Gazprom has demanded that Ukraine more than quadruple the price it pays for Russian gas which accounts for about a third of the gas used in the country of 48 million people. It argues that its new price of 230 US dollars per 1000 cubic metres is in line with world market prices it paid 50 US dollars last year. Ukrainian officials say such a huge leap would cripple the country s economy which relies strongly on energy-intensive heavy industries. Ukraine has not objected to abandoning the cheap price it had been paying but wants the increase phased in gradually. Ukrainian President Viktor Yushchenko on Sunday denounced Russia for imposing economic pressure on Ukraine. Relations between Russia and Ukraine have been stiff and chilly over the past year since Yushchenko came to power over a Kremlin-backed candidate and vowed to move the country out of Russia s sphere of influence and more closely integrate it with the West. Gazprom last week agreed to sell gas to Belarus Ukraine s neighbour for 47 US dollars per 1000 cubic metres and ex-Soviet republics in the Caucasus for about 110 US dollars. Supply problems to Europe could undermine Western trust in Russia s natural gas industry one of the keystones of the country s economy and tarnish Russia s stint as chairman of the Group of Eight which formally started Sunday. A Foreign Ministry statement issued in Moscow on Sunday said Russia would strictly fulfil its supply commitments to Europe and that responsibility for any possible... problems for European countries caused by the actions of Kiev will lie with Ukraine. Ukrainian officials have said previously that its transit arrangements would allow it to siphon off up to 15 percent of the gas moving through the country. Russia says that would be outright theft. On Saturday Russian President Vladimir Putin said Ukraine could continue paying the old lower price of 50 US dollars per 1000 cubic metres for the first quarter of 2006 but only if Ukraine agreed by the end of the day to start paying the new price of 230 US dollars in the second quarter of the year. Kuprianov said Ukraine formally refused the offer.

• published: 16 Sep 2013
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