Russian Gas on Its Way to EU Countries via Ukraine

By Diane Smith
13:59, January 20th 2009
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Russian Gas on Its Way to EU Countries via Ukraine

A gas crisis which has become a post-New Year’s Eve “tradition” has ended Tuesday morning as Russian gas export monopoly Gazprom announced that gas pumps to Ukraine were switched on. The giant gas exporter also said the fees for the gas which passes through Ukraine will rise for Europe in 2010 to $2.5 per 1,000 cubic metres per 100 km.

The current price is of $1.7 per 1,000 cubic metres per 100 km. The new future fees were announced by Gazprom Deputy Chief Executive Alexander Medvedev.

The new flow of gas will not only warm Europe again after 12 freezing days, but have already warmed the relations between Russia’s Czar Prime Minister Vladimir Putin and Ukraine’s Prime Minister Yulia Timoshenko.

Mr. Putin scored a double win with this move. He showed Europe that Russia is still a big, influential player in the region and at the same time strengthened Timoshenko’s position while weakening her rival, President Viktor Yushchenko. The latter is pushing for Ukraine to join the EU and NATO, a move which infuriated Mr. Putin.

The gas is expected to make it to the countries that need it in about 36 hours, the time it takes to travel through Ukraine pipeline networks. Ukraine officials confirmed that their country is receiving the Russian gas and said it will be delivered to the European countries as soon as possible.

Slovakia, a neighbor of Ukraine, was the first country who reported that the gas supplies have arrived through the Velke Kapusany station, although just a small quantity, said Economy Minister Lubomir Jahnatek.

The gas shipments were blocked on January 7 by Russia due to a fierce dispute with Ukraine over prices.



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