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Russia cuts gas to Ukraine


Published Jan 2, 2006
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A war of words has started between Russia and Ukraine after Moscow's state-owned energy company Gazprom has cut off deliveries of natural gas to Ukraine amid a pricing dispute.

Russian company has accused Ukraine of diverting about US$25 million worth of Russian gas intended for customers in other European countries.The Kiev government denied the charge.

The cut off deliveries of natural gas has effected most of European countries as Central European countries rely on Russia for gas and Gazprom supplies about one-quarter of the gas consumed in Europe.

As most of that goes through pipes that cross Ukraine, the dispute is likely to effect throughout much of the continent.

Austria, Poland, Hungary and Slovakia have reported huge drops in Russian gas imports following Moscow's decision to switch off the supplies.

The United States has also expressed concern over Moscow's decision to cut gas supplies.

U.S. State Department spokesman Sean McCormack said in a statement issued from Washington that "such an abrupt stop creates insecurity in the energy sector in the region and raises serious questions about the use of energy to exert political pressure."




   

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