Europe fine amid Ukrainian gas row

BRUSSELS, Jan. 2 (UPI) -- European energy markets are more capable of handling any potential disruptions stemming from the debt row between Ukraine and Russia, supplies show.

Russian energy giant Gazprom disrupted gas supplies to Ukraine Jan. 1 over $2 billion in arrears. Ukraine hosts 80 percent of the Russian natural gas bound for Europe. A 2006 debt row disrupted European supplies briefly.

European markets had braced for the row by keeping storage facilities at capacity, while a mild winter and economic conditions eased demand concerns, the Financial Times said.

Gazprom said Thursday it would increase transits across Ukraine to Europe, while Ukraine's Naftogaz said it had enough gas in reserve to manage the disruption as negotiations continue.

Several European gas firms, from the Italian Eni to the German E.ON, reported adequate supplies Friday as importers report at least four months' worth of gas in storage.

Europe is looking to diversify its energy sector away from Russia, leaving Moscow, as well as Gazprom, at a financial disadvantage.