Gazprom Appeals to Ukraine to Renew Negotiations over Gas Supply Conflict

World | January 4, 2009, Sunday // 00:00

The Russian energy monopoly "Gazprom" appealed to the Ukraine early on Sunday morning to renew negotiations to solve the problem with Russia's natural gas supply to the country.

The appeal has been issued by the company's Managing Board Deputy Chair Alexander Medvedev.

"Since December 31, the Ukraine has refused to negotiate with us and prefers to illegally drain the gas pipes destined for European consumers, violating its duties and responsibilities as a transit country," Medvedev stated.

"We appeal to the Ukraine to refrain from such illegal actions and to the Ukrainian representatives to return to Moscow to negotiate a final agreement for natural gas supply that would be acceptable to both sides in the conflict. We are prepared to meet with the Ukrainians immediately," the "Gazprom" Deputy Chair continued.

On Thursday, January 1, Russia and its energy monopoly Gazprom officially cut off supplies of natural gas.

Ukraine owes the energy giant about USD 2 B for past natural gas deliveries while it disputes the new price set by Gazprom for 2009 deliveries, which is more than double the price from 2008 - increasing from USD 100 per 1,000 cubic meters to USD 250.

The European Union (EU) is monitoring the developments very closely due to fears that this would become a repetition of the 2006 situation when Moscow again cut off gas supply to the Ukraine, and Kiev began draining Russian natural gas from pipes passing through the country and destined to consumers in the EU.

Currently Romania, Hungary and Poland have reported drops of about 30% in supply, according to Euronews. Bulgaria has also reported a 10-15% fall, and have said Turkey, Greece and Macedonia, which rely on Bulgarian transit routes, were also being affected.

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