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The struggle to reduce dependence on Gazprom
Ian Traynor, The Guardian
The fresh eruption of the gas wars between Russia and Ukraine exposes Europe's vulnerability to the Kremlin's energy policies and highlights the dilemmas posed by Europe's attempts to wean itself off dependence on Gazprom. The giant Russian monopoly is the world's biggest producer and exporter of gas while Europe is the world's biggest market and Gazprom's biggest buyer, with Germany taking the lion's share.

On gas, Europe and Russia are locked in an umbilical relationship. But for years European policymakers have been trying to devise strategies that would diminish the dependence on Russia, which supplies about a quarter of Europe's gas and about half of its imports, some 80% of that via Ukraine.

The problems raised by Europe's need for Russian gas are compounded by Gazprom's almost total control of the delivery systems, principally pipelines...
(2 January 2009)

Jitters across EU as Russia cuts Ukraine fuel supply
Tom Parfitt, The Guardian
Europe and America urged a rapid solution to Russia and Ukraine's new "gas war" last night amid fears that supplies to European client countries could be affected.

Russia cut deliveries to neighbouring Ukraine early yesterday, the culmination of a long dispute over unpaid bills and prices for this year's supply. Ukrainian gas officials were swiftly dispatched to Moscow to try to keep negotiations alive after Russia's Gazprom monopoly reduced pressure in the pipeline network, which also carries about 80% of Russian gas consumed by other countries in Europe.

Negotiations faltered as the two sides searched for a way to resolve to the stand-off, which echoes a dispute in January 2006. Gazprom says it is owed more than $2bn for gas shipped last year, including $600m in fines which Ukraine says it is not yet prepared to pay.

Ukraine says it has paid $1.5bn for supplies in November and December, but Gazprom said it had not received the money from RosUkrEnergo, an intermediary company....
(2 January 2009)

Russian gas row may cost UK customers
Simon Bowers, The Guardian
Hopes of deep cuts in heating bills for British homes before the winter is out were evaporating yesterday after Russia turned off the gas supply to neighbouring Ukraine over alleged payment arrears, raising concern about the security of supplies throughout Europe.

Pipelines that cross Ukraine carry about a fifth of the European Union's gas needs and politicians across the continent yesterday urged the two sides to resolve their dispute as quickly as possible.

"We urge both parties to treat this as a commercial matter and seek agreement through negotiation," said Britain's Department of Energy. "All existing commitments to supply and transit must be honoured," said the Czech deputy prime minister, Alexandr Vondra, hours after the republic took over the EU presidency....
(2 January 2009)