European customers report resumption of Gazprom supplies

European buyers of Gazprom’s natural gas today said they were receiving full supplies after the Russian monopoly increased shipments through Ukraine.

This followed a chorus of protest over Russia’s decision to cut off supplies to its neighbour.

The resumption of normal flows was reported by Hungary, Austria and Slovakia, among others, and came as officials with OAO Gapzrom and its Ukrainian counterpart, Naftogaz, were scheduled to resume talks over the pricing dispute later today, Ukrainian state-run television quoted Ukrainian Foreign Minister Borys Tarasiuk as saying.

Gazprom halted deliveries to Ukraine on Sunday because Kiev had refused to meet its demands for a four-fold price increase. The state-controlled company said then that it would continue shipping full supplies to its European customers, about 80 per cent of which goes through pipelines crossing Ukraine.

Despite that promise, within hours of the reduction of gas going into the pipes, other countries began reporting pressure fall-offs. Russia yesterday said that Ukraine was stealing gas at a rate of 95 million cubic metres a day; Ukraine denied that and said that it was the reduced amount of gas in the pipes that made the pressure too low.

Today, Gazprom spokesman Sergei Kupriyanov said Ukraine had skimmed 223.5 million cubic metres of gas intended for Europe on Sunday and yesterday, Russian news agencies reported.

An number of European countries yesterday anxiously called on Russia and Ukraine to work out the dispute soon. About one-quarter of Europe’s gas comes from Russia – 80 per cent of that via Ukraine – and the stand-off raised fears of serious gas shortages as Europe suffers a particularly cold winter.

Gazprom moved yesterday evening to contain the damage after a day of rebukes from Europe – which Moscow apparently had not expected amid its loud and uninterrupted criticism of Kiev – and pledged to send an additional 95 million cubic metres per day through Ukraine.

“We have taken all necessary measures for Europe to receive gas in the full quantity. Full connections with Europe will be restored,” said Gazprom deputy chairman Alexander Medvedev, according to Russian news agencies.

Austrian petroleum giant OMV AG said its natural gas imports from Russia had been restored 100 per cent. “We are receiving full service from Russia,” OMV general director Wolfgang Ruttensdorfer told Austrian television.

Slovak state gas company workers in the transit centre at Velke Kapusany, on the border with Ukraine, said supplies had been restored to their full level overnight, Russia’s Gazprom-owned NTV television reported. Some 60 per cent of Gazprom’s gas supplies through Ukraine transit Slovakia.

In Hungary, Sandor Kantor, a spokesman for MOL Rt., said the disruption was likely over while Slovenia said its supplies were back to normal.

Yet the gas fight has reawakened European fears over Russia’s reliability and potential for belligerence – criticism that comes as the country assumes the chairmanship of the Group of Eight, a position it wants to use to boost its international prestige.

The dispute has thrown a new spotlight on Ukraine’s dependence on Russia even as it seeks to break out of Moscow’s orbit of influence and become a member of the European Union.

Ukraine’s Westward aspirations since President Viktor Yushchenko took office a year ago have irritated the Kremlin. Ukraine’s Foreign Ministry alleged that the gas fight was aimed at wrecking Kiev’s economy.

Ukraine denies it is diverting gas intended for others. Ukrainian Deputy Foreign Minister Anton Buteiko said his country was sending on the European gas even though there was no contract with Russia and Gazprom was not paying transit fees.

“And when one does not pay dues, that’s something that can be described as smuggling,” Buteiko told TV5.

Russia last year shipped about 25 billion cubic metres of gas to Ukraine, around one-third of the country’s total consumption. Plachkov said that with the Russian cut-off, Ukraine was relying on its own reserves and on deliveries of about 120 million cubic metres a day from Turkmenistan, which is shipped through Russian pipelines to Ukraine.

Medvedev said, however, that Russia was not sending on any Turkmen gas.