RPT-WRAPUP 1-Bulgaria says Russia gas supply via Ukraine halted

Tue Jan 6, 2009 3:15am EST
 
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* Bulgaria: "We are in a crisis situation"

* Kiev says more disruption to hit Europe in hours

* Russia says forced to reduce flows to stop Ukraine stealing

* EU delegations to meet Russian, Ukrainian officials

By James Kilner and Pavel Polityuk

MOSCOW/KIEV, Jan 6 (Reuters) - Supplies of Russian gas via Ukraine to Bulgaria, Greece and Turkey stopped flowing on Tuesday because of a dispute between Moscow and Kiev over gas prices, officials in Sofia said.

Russia on Monday ordered a reduction in gas flow to Europe via Ukraine, a measure it said was to stop its neighbour stealing fuel and which Ukraine said would jeopardise supplies to Europe as it faces freezing temperatures.

The gas row has raised new questions about Russia's reliability as an energy supplier and rekindled Western suspicions -- still fresh after Russia's war with Georgia last year -- that the Kremlin bullies its pro-Western neighbours.

KNOCK-ON EFFECT

Russian gas export monopoly Gazprom (GAZP.MM) cut all supplies for Ukraine's domestic use on New Year's day in a row over gas prices -- creating a knock-on effect for Europe which receives one fifth of its gas from pipelines through Ukraine.

"As of 3.30 a.m. (0130 GMT) supplies ... to Bulgaria as well as the transit to Turkey, Greece and Macedonia have been suspended," Bulgaria's Economy Ministry said in a statement. "We are in a crisis situation."

There was no immediate confirmation from Turkey, Greece or Macedonia of a halt in supplies. Turkey has an alternative route for importing Russian gas, under the Black Sea.

South-east Europe and the Balkans receive their Russian gas from a pipeline which passes from Ukraine via Bulgaria, so officials in Sofia are likely to be the first to see signs of a cut-off.

In Kiev, Ukrainian state energy Naftogaz firm said Russia had cut gas supply via Ukraine to Europe to about a third of its normal flow. "This means that in a few hours Europe will face a problem with gas supplies," said a Naftogaz spokesman.  Continued...

 
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