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Moscow cuts gas supplies to Ukraine
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Wed, Mar 05, 2008
The Straits Times
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MOSCOW - IN A sign that little will change with a newly elected president, Russia has slashed natural gas supplies to Western-leaning Ukraine, while police in Moscow have roughed up opposition protesters who denounced the polls as a farce.
Gas supplies were cut by a quarter to Ukraine on Monday after Russian gas monopoly Gazprom accused it of failing to negotiate over a US$600 million (S$830 million) debt.
Yesterday, Russia said it would cut supplies by 50 per cent after Ukraine failed to resume talks.
Monday's cut came just hours after Gazprom chairman Dmitry Medvedev won the Russian presidential election with the support of his mentor, President Vladimir Putin.
| While it was thought that Ukraine could handle the 25 per cent cut as spring is just around the corner, yesterday's increase led to Ukraine's gas company Naftogaz initially suggesting it might divert gas earmarked for Europe to make up for its shortfall.
'Naftogaz can only guarantee uninterrupted transit (of gas) to European consumers as long as it does not threaten Ukraine's energy security,' the company said.
Ukranian Foreign Minister Volodymyr Ogryzko promised during a visit to Warsaw that his government would 'do everything' to ensure that gas deliveries to the EU continued 'normally', and Naftogaz later said it could cope with the reduced supply.
The row echoes a 2006 price dispute when Gazprom cut off all of Ukraine's gas, triggering shortages across Europe.
Russian-Ukrainian tensions and Gazprom's tough stand towards Russia's neighbours have sparked nervousness in EU capitals over Europe's growing reliance on Russian gas supplies - almost all of which come through Ukraine.
Mr Putin and Mr Medvedev have increased the Kremlin's control over Gazprom and have used it to help energy-rich Russia expand its economic and political influence abroad.
Monday's action seemed to suggest Mr Medvedev will continue Russia's tough stance towards Ukraine, which is seeking closer ties with the West, including Nato membership.
He won Sunday's presidential election by a landslide and has vowed to pursue the foreign and domestic agenda of his predecessor. That was nowhere more evident than on Monday in Moscow.
Demonstrators who took to the streets to protest against the election were roughed up and carted off in buses by throngs of riot police. More than 100 activists were detained.
Mr Medvedev, 42, who will be inaugurated on May 7, has vowed to make Mr Putin, 55, his prime minister, enabling the forceful leader to maintain strong influence.
ASSOCIATED PRESS, AGENCE FRANCE-PRESSE, REUTERS
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