Thursday, January 8, 2009

The rifts behind Europe's gas row

The rifts behind Europe's gas row

By Gabriel Gatehouse BBC News, Kiev
Ukrainian Prime Minister Yulia Tymoshenko and President Viktor Yushchenko - photo 25 December 2008
Moscow says Ukraine's political splits are standing in the way of a deal

Russian and Ukrainian officials have met to try to resolve the latest round of their dispute over payments for Russian gas, but the rhetoric still remains bitter and trenchant, in public at least, as Moscow blames Kiev, and Kiev blames Moscow.

The Russians say that they had no alternative but to turn off the taps to Ukraine because Kiev was "stealing" gas and blocking the network of pipelines that crosses the country.

Hryhoriy Nemyria, the Ukrainian deputy prime minister, who is leading his country's delegation to the EU called those allegations "lies".

Speaking to the BBC before leaving for Brussels, he said there was nothing his country could do to restart supplies of gas.

"If there is something to transit, of course Ukraine was and is committed to ensure the uninterrupted transit of Russian gas to Europe," he said.

What shape an eventual deal takes may well depend on who blinks first under EU pressure

"But if there is no gas at all, then that speaks for itself."

Both sides have said they want independent monitors to come in to verify their claims.

But beyond the argument over who is to blame there are a number of fundamental issues that are unlikely to be fully resolved in the long term, even if the gas supply to other European countries is restored for now.

Poor relations

First of all there is the question of price. The current crisis was triggered largely by the failure of Kiev and Moscow to agree on how much Ukraine should pay for the gas it gets from Russia in 2009.

Gas pipeline in Bosnia
South-east Europe has been badly affected by the cut in supplies
Last year, Kiev paid $179.50 (

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