Gas crisis reignited as Russians turn up heat on Ukraine

RUSSIA’S Gazprom state-controlled gas giant has raised the threat of a repeat gas crisis with Ukraine, warning that the ex-Soviet nation was building up its winter gas supplies too slowly and possibly endangering smooth deliveries to Europe.

Gazprom said in a statement that a company meeting chaired by Gazprom chief executive Alexei Miller noted that “gas is being injected at too slow a rate” into underground storage facilities in Ukraine. The company added that it would push Ukraine’s Naftogas company to build up the necessary reserves.

Prompt withdrawal from storage facilities in Ukraine is essential to the smooth supply of natural gas from Russia.

“The creation of necessary reserves in underground storage in Ukraine in time for the start of the winter heating season is of cardinal importance for guaranteeing uninterrupted gas supply to Ukrainian customers and for the fulfilment of Ukraine’s obligations in transporting gas to European states,” Gazprom’s statement said.

Gazprom temporarily cut gas supplies to Ukraine in early January at the climax of a dispute between the two over a sharp price hike, resulting in a brief interruption of supplies to Europe as Ukraine continued to skim gas from the transit pipeline that carries 80% of Gazprom’s European exports.

The fight has prompted the European Union to search for alternate gas supply routes to reduce its dependence on Gazprom, which provides a quarter of the European gas consumption.