MOSCOW — Russia’s state gas monopoly halted natural-gas exports to Ukraine on Thursday in a dispute that could interrupt fuel supplies to other European countries.
Despite weeks of negotiations between Gazprom and Ukraine, the two parties were unable to come to terms over Ukraine’s unpaid debts as well as the cost of gas and transit fees in the new year. Gazprom said that with no contract in place for 2009, there were no grounds to continue exporting gas to Ukraine.
Eager to soothe worries about broader interruptions, Russia increased supplies of natural gas to other European customers. About one-fifth of the gas bound for the European Union passes through Ukraine, and analysts say Europe could do without Russian supplies only for several days.
In recent days, Russian officials have warned that Ukraine might siphon off other customers’ gas. Russian Prime Minister Vladimir Putin said Ukraine would face “quite serious consequences” for any supply interruptions to Europe.
Ukrainian officials said the country had enough gas in reserve to keep domestic supplies stable for months, and they pledged to keep the gas lines flowing to Europe. But experts warned that the stoppage of Ukraine-bound gas could create a pressure drop in the pipeline system, causing transit troubles to other countries.
With concern mounting, the EU, the U.S. government and the International Energy Agency urged the two parties to resolve their differences to avoid reducing gas supplies across the continent.
Each side blamed the other for the breakdown of negotiations.
Gazprom said progress was impossible because the Ukrainian delegation wasn’t empowered to sign a new contract. Ukraine blamed Gazprom for suspending talks.
The discussion remained on hold, although Ukrainian officials indicated they expected a deal to be struck before Orthodox Christmas on Wednesday. A delegation from Ukraine’s state-run gas company, Naftogaz, was due in Moscow late Thursday for talks with Gazprom.
The price dispute is playing out against a backdrop of distrust between the two former Soviet neighbors. Since the 2005 Orange Revolution in the Ukrainian capital of Kiev ousted a Russia-backed government and installed pro-Western leaders, relations between the two nations have been tense.
