Clock ticks down to new Russia-Ukraine gas conflict
Tuesday, 30 December 2008
MOSCOW, Dec 29 (AFP): Time is running out for Russia and Ukraine to reach a last minute deal by midnight at New Year to prevent a Russian cut of gas deliveries to its neighbour and a possible bitter diplomatic conflict.
Instead of awaiting the traditional champagne toasts for New Year, Russian and Ukrainian gas executives have cancelled their holiday plans as the sides try to strike a deal over Kiev's two billion dollars of unpaid gas debts.
Russian energy giant Gazprom has warned it will cut off supplies to Ukraine if the debt is not settled, saying that a new contract needs to be signed by January 1 and no deal can be inked without the money being paid.
Gazprom's board of directors, which is chaired by Russian Deputy Prime Minister Viktor Zubkov, is to hold an extraordinary meeting Monday to discuss the situation.
"I think it's 50-50," Gazprom spokesman Sergei Kupriyanov said in an radio interview Saturday when asked if Russia would cut gas deliveries or if the two sides would clinch a last minute deal.
A cut in deliveries could even hit west European consumers, who receive Russian gas that transits across Ukraine and were affected by a similar conflict in January 2006.
Such a move would intensify tensions between Moscow and Ukraine's pro-Western government already inflamed by Ukrainian support for Georgia in its August war with Russia.
Russia found the sight of Ukrainian President Viktor Yushchenko visiting Tbilisi to give his support during the war hard to swallow and the gas standoff is the consequence, said Russian analyst Alexei Malashenko.
"Putting pressure on Ukraine over gas has become an obsession of Russian politicians," said Malashenko of the Carnegie Centre in Moscow.
According to Kupriyanov, the Ukrainian side has already made clear it cannot pay the debts comprising 805 million dollars for November, 862 million dollars for December and 450 million dollars in penalties for late payment.
Instead of awaiting the traditional champagne toasts for New Year, Russian and Ukrainian gas executives have cancelled their holiday plans as the sides try to strike a deal over Kiev's two billion dollars of unpaid gas debts.
Russian energy giant Gazprom has warned it will cut off supplies to Ukraine if the debt is not settled, saying that a new contract needs to be signed by January 1 and no deal can be inked without the money being paid.
Gazprom's board of directors, which is chaired by Russian Deputy Prime Minister Viktor Zubkov, is to hold an extraordinary meeting Monday to discuss the situation.
"I think it's 50-50," Gazprom spokesman Sergei Kupriyanov said in an radio interview Saturday when asked if Russia would cut gas deliveries or if the two sides would clinch a last minute deal.
A cut in deliveries could even hit west European consumers, who receive Russian gas that transits across Ukraine and were affected by a similar conflict in January 2006.
Such a move would intensify tensions between Moscow and Ukraine's pro-Western government already inflamed by Ukrainian support for Georgia in its August war with Russia.
Russia found the sight of Ukrainian President Viktor Yushchenko visiting Tbilisi to give his support during the war hard to swallow and the gas standoff is the consequence, said Russian analyst Alexei Malashenko.
"Putting pressure on Ukraine over gas has become an obsession of Russian politicians," said Malashenko of the Carnegie Centre in Moscow.
According to Kupriyanov, the Ukrainian side has already made clear it cannot pay the debts comprising 805 million dollars for November, 862 million dollars for December and 450 million dollars in penalties for late payment.