. Energy News .

Ukraine cuts Gazprom import volumes
by Staff Writers
Kiev, Ukraine (UPI) Jan 13, 2012

disclaimer: image is for illustration purposes only

Ukraine says it will unilaterally cut the volume of gas it imports from Russia's state-owned Gazprom, escalating the long-running Kiev-Moscow gas price feud.

Ukrainian Minister of Energy and Coal Industry Yuriy Boyko declared Wednesday in Kiev his country will only import enough gas to sustain the national economy -- some 27 billion cubic meters in 2012, Ukrainian National Radio reported.

That's only half of the amount Ukraine is contractually stipulated to buy under a long-term contract that runs until 2019, Gazprom Chief Executive Alexei Miller responded in Moscow.

Gazprom pegs its long-term gas export prices to those of oil, and under those terms the Ukrainian utility Naftogaz is currently paying about $400 per 1,000 cubic meters -- almost twice as much as it was at the start of 2011.

Boyko's announcement of unilateral cutback in imports raised fears ongoing negotiations on a new gas deal could be undermined and prompt Kiev to again switch off its transit tap linking Gazprom to its European customers, as it did in 2006.

Kiev contends Naftogaz is sinking in debt in part because of the terms of the 2009 gas deal with Russia and claims it is one of the most expensive in Europe.

Boyko said the negotiations will continue "until an acceptable model for the Ukrainian economy is found," adding he will report to Parliament on the talks' status Jan. 13 as scheduled.

Miller, appearing in Moscow with Russian President Dmitry Medvedev, asserted Ukraine has a "take-or-pay" clause in its contract and claimed imports had already fallen by nearly 67 percent since the New Year, Interfax reported.

"Ukraine made such a statement without having reached agreement with the Russian side, and we have made no such changes in the contract," Miller said.

"So far, our Ukrainian friends are only talking, but no specific proposals have been made," he added. "We can hope that some sort of specific proposals will be made in the near future."

Ukraine last month was importing 100-110 million cubic meters of gas per day, but the daily levels have fallen steadily since then, Interfax said. By Monday they had fallen to 33.3 million cubic meters.

Purchases by Ukrainian chemical manufacturer OstChem had plunged by almost 83 percent from 23 million cubic meters to only 4 million cubic meters per day.

A new round of negotiations over the gas price is set for this month.

Should no agreement be reached and transmission links to Europe be shut off as a result, both Ukraine and Russia could be at a disadvantage toward Europe this time around, The New York Times reported.

That's because European consumers now have more access to natural gas on the spot market as well as to alternative sources of liquefied natural gas, Graham Freedman of energy consultants Wood MacKenzie told the newspaper.

"Russia now faces real competition from LNG and from shale gas, which the Europeans have access to," he said. "It should be worried."

Related Links
Powering The World in the 21st Century at Energy-Daily.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Japan backtracks on Iran oil embargo
Tokyo (AFP) Jan 13, 2012
The Japanese government on Friday began backtracking on its pledge to join Washington's drive to strangle Iranian oil exports as top figures insisted no decision had yet been made. Just 24 hours after the country's finance minister indicated Tokyo was falling into line with US demands, the premier and his foreign minister both signalled a significant retreat. The US is trying to ramp up ... read more

EPA Web tool shows greenhouse gas culprits

China urges global energy cooperation

S. America energy demand drives investment

New FERC Ruling Provides Relief To Besieged Power Grids

Ukraine cuts Gazprom import volumes

Rice's 'quantum critical' theory gets experimental boost

Saudi oil output 'stretched to the limit'

Iran warns Gulf states not to make up for oil ban

Spain's Gamesa wins Chinese wind turbine contract

Mortenson Starts Construction of Rim Rock Wind Project

SA Opposition wind policy threatens $3 billion investment

Natural Power launches WindManager in the US

Here comes the sun

Private investments in renweables jump

Philippines pushes renewable energy

Trina Solar Announces Complete Large Rooftop Solar Solution

Thousands protest against nuclear power in Japan

Japan probes radioactive apartment block

Rio Tinto completes takeover of uranium miner Hathor

Quake hits eastern Japan; nuclear plant stable

US looks ahead after ethanol subsidy expires

Good parents are predictable when it comes to corn

Algae for your fuel tank

Fast Track Alternative Fuel Project

China launches Ziyuan III satellite

Spying on Tiangong

China's space ambitions ally glory with pragmatism

Why The X-37B Is Not Spying On Tiangong

Cut back on soot, methane to slow warming: study

Dramatic Links Found Between Climate Change, Elk, Plants, and Birds

Team finds a better way to gauge the climate costs of land use changes

European mountain vegetation shows effects of warmer climate


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement