Hopes Russia will restore gas supplies to Europe

There was cautious optimism last night that Russian gas will begin flowing into Europe again next week following agreement on monitors in both Russia and Ukraine.

Arrangements were being made to provide emergency supplies to the worst affected countries where industry has had to be shut down and heating to homes cut off or rationed despite sub-zero temperatures.

But nobody could say with certainty if the on-going negotiations being brokered by the European Commission and the Czech presidency will definitely lead to Russia turning on its gas and when this would happen.

Over 20 monitors, mostly gas industry experts and EU officials, flew to Kiev and Berlin yesterday, ready to take up duty.

They are to see exactly what quantity of gas Russia is sending through the Ukrainian gas transportation system, the largest in the world, and how much of it is being released to European countries that have already paid for it.

Russia has accused Ukraine of siphoning off gas for its own use as part of the dispute over this year’s price increase.

Russia said that once the taps are open, they can have the gas flowing in about 30 hours while Ukraine said it would take another 12 to 36 hours to transit it to the EU border.

The Czech prime minister, Mirek Topolanek, began negotiations with the Ukrainian president Viktor Yushchenko in Kiev and today is to meet his Russian counterpart, prime minister Vladimir Putin to negotiate the restoration of supplies.

The EU’s Gas Co-ordination Group met in Brussels yesterday with experts from Gazprom and Naftogaz to identify the elements of the dispute between the two parties that has deprived 100,000 Europeans of gas and about 35% of its gas imports.

The EU has moved from a position where it refused to become involved in what it insisted was a commercial dispute between the two companies, but a commission spokesperson said yesterday they will help them reach a longer term agreement on the core issues.

Energy Commissioner Andris Piebalgs warned both sides, “Europe needs reliable partners. A commercial dispute cannot have such disproportionate consequences.

“Gas supplies to the EU have to be restored immediately”.The Gas Group pointed out that the situation showed that every country in the EU needs to have its gas networks linked up to allow one country to help out another and to set up an EU emergency plan to be activated automatically if supply is disrupted in any one country.

Energy ministers, including Minister Eamon Ryan will attend an extraordinary meeting on Monday to consider recommendations.

Here, Bord Gáis said the price of wholesale gas to Ireland had increased as a result of the dispute, but that this would not be passed on to consumers.