Russia will resume delivery of natural gas to the European Union today after a dispute with Ukraine led to a six-day halt.
Russia’s OAO Gazprom, supplier of a quarter of Europe’s gas, suspended transit flows through Ukraine on Jan. 7 after accusing the country of taking gas for its own use. Jose Barroso, president of the European Commission, said an agreement allowing shipments to be measured was approved by all sides.
Gas prices in the U.K., Europe’s biggest market, slid 10 percent Monday as Gazprom pledged to restore supplies once independent monitors were in place at pumping stations. Last week, after Gazprom turned off the taps, prices surged 24 percent.
The cutoff had disrupted supplies to at least 20 European countries, with the Balkans the hardest hit. It also renewed calls for the EU to diversify its sources of energy away from Russia. Ukraine denies Russia’s charges.
Gazprom, Russia’s gas export monopoly, said transit flows could start at 8 a.m. central European time. Deliveries may reach European consumers between 14 and 16 hours later, Ukraine’s Deputy Prime Minister Hryhoriy Nemyria said.
It’s “not the end of the saga,” said Alfa Bank chief strategist Ronald Smith by telephone from Moscow Monday. “What you’re going to see now is Russia and Ukraine talking again about gas prices, with Ukraine in a materially weaker bargaining position.”
