Thursday, March 6, 2008
Gazprom Restores Ukraine Gas Flow
Russian energy giant Gazprom has agreed to restore full gas supplies to Ukraine, ending a three-day crisis.
Gazprom had cut supplies to Ukraine by half this week, in a dispute over Ukraine's debts to Gazprom (£770m) and a new contract.
The dispute raised concern that gas supplies to Europe would be hit as much of its supply passes through Ukraine.
But Naftogaz said that supplies to Europe had not been interrupted by its disagreement with Gazprom.
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This is important because it shows that Russia has the power to control gas flowing to almost all of Europe since the gas from Russia flows through Ukraine. In the past when Russia has had disagreements with Ukraine, it has cut off the gas lines or slowed the amount running through the pipes, which has impacted all of Europe. Russia has the ability to control the amount of gas and gas exports going through Western Europe in the event of an international dispute.
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