Germany warns gas shortage imminent

By Isabel Gorst in Moscow, Roman Olearchyk in Kiev, Delphine Strauss in Ankara and Chris Bryant in Berlin

Published: January 6 2009 10:45 | Last updated: January 6 2009 19:21

E.on, the German energy group, warned that Russian gas deliveries to Germany , Gazprom’s biggest foreign buyer, via Ukraine could collapse altogether by late on Tuesday afternoon.

As reductions in Russian gas supplies spread deep into Europe on one of the coldest days of the winter, Naftogaz, Ukraine’s state gas company, said it would resume gas talks in Moscow on Thursday, raising hopes of a compromise in the dispute.

Oleg Dubyna, chairman of Naftogaz, said: “I have spoken with [Gazporm chief executive Alexei] Miller. I will fly to Moscow on January 8 to continue talks.”

Italy’s industry ministry said Italy would increase gas imports from other sources after Russian deliveries fell by 80 per cent.

Bulgaria and Turkey said gas supplies through a pipeline running south from Ukraine halted altogether on Monday night.



Bulgaria, which is 100 per cent dependent on Russian gas, instructed industrial gas users to switch to alternative fuels and urged households to use other forms of heating.

Alexander Medvedev, the deputy chief executive of Gazprom, arrived in Berlin for talks with the German government. Mr Medvedev, who is on a whirlwind tour of Europe in an effort to shore up support for Gazprom, is also expected to meet a delegation from the European Union in Berlin.

Brussels on Tuesday called for the immediate resumption of gas supplies to Europe and urged the two sides to resume talks immediately. “Without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities to the European Union, gas supplies to some EU member states have been substantially cut,” the EU said in a statement.

Gazprom had blamed Ukraine for unilaterally breaking off negotiations of a gas deal on new year’s eve, dashing hopes of a last-minute resolution that could have averted the gas crisis.

Michael Glos, the German economics minister, on Tuesday urged the two sides to resume talks earlier, warning that Russia’s reputation as a gas supplier and Ukraine’s reputation as a transit route were at stake.

A Naftogaz spokesperson said it was up to Gazprom to decide whether to resume normal supplies of gas ahead of the talks.

Bohdan Sokolovsky, an energy adviser to Ukraine’s president Viktor Yushchenko, welcomed the resumption of gas talks. “I very much hope the Russian side sees the need for a compromise and ends this pattern of ultimatums and forceful tactics,” he said.

Slovakia said it would call a state of emergency as gas Russian gas supplies dipped by 70 per cent.

PGNiG, Poland biggest gas distributor, said it was cutting gas supplies to industrial users, as a reduction in Russian deliveries that began late last week grew.

Lech Kaczynski, the Polish president, invited his Ukrainian counterpart to Warsaw for talks about the gas crisis next week.

Vladimir Putin, Russia’s prime minister, on Monday ordered Gazprom to cut supplies to Ukraine, hours after Kiev took steps to annul a long-term contract signed with Russia in 2006 governing the transit of gas to Europe.

Gazprom urged Ukraine to return to gas talks that broke down on December 31 after the two sides failed to agree on gas pricing and transit terms for 2009.

Vadim Karasyov, a political adviser to Mr Yushchenko, said the dispute had gone so far that it was “less clear what agreement could be reached and what the losses and gains would be for each side”.