WRAPUP 7-Russia opens gas taps, but no relief for Europe

Tue Jan 13, 2009 2:51pm EST
 
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* Pumping station on Russia-Ukraine border opens taps

* EU says little or no gas flowing

* Gazprom declares force majeure on exports to Europe

* Moscow, Kiev trade blame for lack of gas

By Gennady Novik

SUDZHA, Russia, Jan 13 (Reuters) - Russia started pumping gas meant for Europe via Ukraine on Tuesday for the first time in nearly a week, but the European Union said little or no gas was flowing to countries suffering urgent energy shortages.

Russia accused Ukraine of shutting off gas to Europe. But Kiev blamed lack of pressure in the pipeline system and said it could not ship gas without cutting off several of its regions.

The crisis has disrupted supplies to some 18 countries -- some of them totally dependent on Russian gas -- at the height of winter, shutting down dozens of factories in southeast Europe and leaving hundreds of thousands of people without heating.

Bulgaria and Slovakia, two of the hardest hit EU states, were reported to be sending their prime ministers to Russia and Ukraine on Wednesday for urgent talks.

A deal brokered by the EU, which gets a quarter of its gas from Russia, had been intended to get supplies moving on Tuesday, with international monitors in place to ensure that Ukraine was not siphoning off any gas, as Moscow has alleged.

Technicians at Russia's Sudzha pumping station, near the border with Ukraine, opened the gas taps at 10 a.m (0700 GMT).

Russia said flows were partly restarted but then blocked. "The taps on the Ukrainian side are simply closed," said Sergei Kupriyanov, a spokesman for state-controlled gas monopoly Gazprom (GAZP.MM).

Gazprom said it was declaring force majeure on gas exports to Europe, meaning circumstances beyond its control prevented it from meeting its obligations to clients.

Ukraine told the EU there were "technical difficulties" in that the pressure of gas from Russia was too low.

Gazprom is demanding that Kiev hand over $614 million for unpaid gas bills and pay $450 per 1,000 cubic metres of gas in 2009 -- similar to rates paid by EU customers but a big rise on last year's price of $179.5.  Continued...

 

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