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Natural Gas Wars: Gazprom cuts supplies to the Ukraine

Posted March 6, 2008

"Russia’s state-owned oil monopoly… threatened to cut natural gas supplies to the former Soviet satellite by half, a move that has disturbing implications for the rest of Europe." — Jason Simpkins

by Jason Simpkins, Money Morning

Baltimore – (TFN):  OAO Gazprom (OGZPY: Pink Sheets), Russia’s state-owned oil monopoly upped the ante in its ongoing dispute with Ukrainian policymakers Tuesday, when it threatened to cut natural gas supplies to the former Soviet satellite by half, a move that has disturbing implications for the rest of Europe.

Gazprom reduced natural gas deliveries to Ukraine by one-quarter Monday, saying the country has failed to pay $600 million in gas bills for the year. Gazprom also said that Ukraine’s state energy company, Naftogaz Ukrainy, failed to sign contracts for the supply of gas this year. Gazprom has refuted accusations from Naftogaz that the reduction of natural gas supply from Russia was closer to 35%.

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After Ukrainian officials failed to turn up for planned talks aimed at ending the pair’s supply dispute, Gazprom threatened to cut supplies by another 25%, reducing the total amount of natural gas to the Ukraine by half.

"Due to the lack of progress in negotiations and Naftogaz’s failure to sign gas supply contracts - including for January and February - gas supplies to Ukraine will be reduced by an additional 25% …" Read on to learn more.
 

Read other articles about Gazprom’s battle to conquer Europe:

Natural Gas Wars: Gazprom wins in Hungary, again

Russia vs. the Ukraine: Gazprom always wins

Energy Investing: Buy Gazprom before the (other) election
 

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