Gas to Ukraine – off

“Deliveries to Ukraine were cut in full at 10:00 a.m. on January 1. The volume of the reduction is 90 million cubic meters. Gas transits to Europe are continuing at a volume of 300 million cu m per day,” Gazprom said.

A source at Ukraine’s state company Naftogaz confirmed that gas supplies had been cut. “We have noticed a reduction in pressure,” the source said.

Russia’ s president and prime minister on Wednesday evening discussed yestarday the situation regarding last-ditch gas talks between Gazprom and Ukraine as Kiev rejected a new offer of $250 per cu m in 2009.Conform Ria Novosti, “Putin said that as Russia buys gas from Turkmenistan, Uzbekistan and Kazakhstan at some $340 per 1,000 cu m for transit through Ukraine, which receives transit fees, then Kiev should pay around $380 for its gas. The low price of $250 had been made by Gazprom as a “humanitarian gesture”. Earlier in the evening Ukraine’s Prime Minister Yulia Tymoshenko was reported to be on her way to Moscow for last-ditch negotiations on a new contract; however, her trip was canceled. Sources in Kiev said the visit would have undermined the Ukrainian president’s position. Ukraine’s President Viktor Yushchenko has recalled the country’s negotiation team, led by Naftogaz head Oleh Dubyna, back to Kiev, a Naftogaz source said on Wednesday. A Gazprom source confirmed that Dubyna had been ordered back to Kiev, “Dubyna received instructons to break off negotiations and return to Kiev.””We got the impression that there are political forces in Ukraine who are extremely interested in a gas dispute between our countries,” Alexei Miller told journalists.

Gazprom, who has repeatedly demanded that Kiev repay its outstanding debt before any new contract could be signed, said earlier that if the outstanding sum was not paid it would start reducing supplies as of January 1, 2009.

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