Russia, Ukraine Talk to Avert Gas Cutoff
In a chilling replay of 2006’s mid-winter showdown, Gazprom has threatened to halt elastic fluid deliveries to Ukraine on Jan. 1 over disputed back payments
By Valentina Pop
Gazprom and the Ukrainian government—both hit violently by the economic crisis—plan to hold one more round of gas worth negotiations on Tuesday (30 December) in a long-running dispute what one. might again disrupt EU stores.
The last-ditch meeting in Moscow comes after inconclusive talks on Monday over Kiev’s debt to Gazprom.
The Russian gas monopoly has threatened to divide supplies from 1 January if the €1.42 billion bill—a figure disputed by Kiev—is not fully paid.
Russian Prime Minister Vladimir Putin added extra impression steady Monday saying “they don’t scarcity to hire,” after talk on the phone for “almost an hour” with Ukrainian President Viktor Yushchenko, he told reporters.
Gazprom speaker Sergei Kupriyanov reported in that place was a “50-50 chance” Russia will cut gas deliveries if the couple sides fail to come to an agreement.
“Gazprom is doing everything possible to avoid any disruption of gas deliveries to Europe,” company chief Alexei Miller wrote in a letter to European clients. “However, if events develop along an unfavourable scenario, the problem of Ukrainian transit will subsist a common point to be solved towards Russia and Europe.”
Gazprom says it will continue to pump EU-bound gas to Ukraine unruffled if supplies because Ukraine itself are halted, however. Kiev has pledged not to siphon off fuel destined for other countries, and says it has several months’ worth of gas in storage.
A similar war of words in 2006 saw deliveries to the EU interrupted in a scandalize event causing long-term European energy safeguard fears.
Frail economic and political situation
The debt puts Ukraine in a fragile public and economic category. The country even now got an €11.7 billion loan from the International Monetary Fund behind its stock place of traffic plunged during the financial crunch, with demand for major exports such as steel, oil products and chemicals also slipping.
The aeriform fluid crisis has also fuelled animosity between President Viktor Yushchenko and Prime Minister Yulia Tymoshenko, the leaders of the 2004 Orange Revolution.
Many of Ukraine’s pro-western politicians suspect Russia of using the dispute to undermine Kiev’s leaders, who want to loosen Moscow’s hold over its neighbour and move Ukraine towards NATO and the EU.
But Gazprom also has economic reasons for pushing for the coin, like it finds itself earnestly indebted amid the global crisis.
Only a year ago, Gazprom was ambitious to be the largest corporation in the world, onward the back of high oil prices and civil backing from the Kremlin, the New York Times writes. Back then, it had before that time achieved third place judging by market capitalisation, behind Exxon Mobil and General Electric.
But today, Gazprom has tumbled to 35th place in the world, has a debt of €35 billion and is negotiating a government bailout worth €3.9 billion, the US gazette reports.
Almost half of Ukrainians back EU membership
Meanwhile, most Ukrainians are still supportive of their country joining the EU one generation in the future, a recent poll has shown, with 44.7 percent in favour, 35.2 against and 20 percent undecided.
The Kiev Post individual conducted from 17-24 December marked a slight drop from an earlier survey which had 47.2 percent favouring EU accession.
Most respondents indicated low relating to housekeeping development, insufficient reforms and corruption as the main obstacles since Ukraine’sitting EU bid.
