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You are here:  Home / Business News / Russia prepares to cut gas to Europe

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Russia prepares to cut gas to Europe

Published: Dec. 30, 2005 at 4:52 PM
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MOSCOW, Dec. 30 (UPI) -- Ukraine and Europe braced for Russia to cut off natural gas this weekend after Kiev rejected a nearly five-fold increase in the commodity's price.

Moscow-controlled OAO Gazprom informed Ukraine recently that the cost of its natural gas, which is piped into Ukraine on its way to western Europe, will rise Sunday from $50 per 1,000 cubic meters, a price still paid by Kremlin-compliant Belarus, to $230, The New York Times said.

Ukrainian President Viktor A. Yushchenko agreed to pay more but said his young democracy cannot immediately afford such a dramatic price hike. He appealed Friday to Gazprom to keep talking about how to gradually bring his nation's fuel bill into line with those paid by Western European countries instead of shutting down the pipeline that feeds Ukraine and Western Europe.

But Gazprom said no and invited TV crews to film it Sunday cutting off gas to Ukraine.

Besides diplomatic options, Ukraine also could use gas in storage or raise revenues by increasing the rent it charges the Kremlin for the use of a strategic Black Sea port, Russia's only warm-water port.



© 2005 United Press International, Inc. All Rights Reserved.
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