Gas crisis in Ukraine

2006-01-01 18:57

Kiev - Ukraine's state energy company, Naftogaz, confirmed that it had registered a reduction in gas supplies from Russia on Sunday, said reports, citing company spokesperson Eduard Zaniuk.

Ukraine's emergency situations ministry said a special crisis centre had been set up to deal with the effects of the reduction, which was prompted by Kiev's refusal to accept a steep increase in the price it paid for Russia's gas.

An energy ministry official said three plants providing heating for homes in the regions of Donetsk and Kharkov in eastern Ukraine had been warned about possible cuts in supplies.

The official said: "They need to be ready to replace gas by coal and only use a small amount of gas to improve incineration."

Cataclysm

Ukrainian Prime Minister Yury Yekhanurov said last week that Ukraine should be "ready for any cataclysm", but insisted, "the people will feel nothing".

Ukrainian officials had said large industrial enterprises in Donetsk and Odessa might face disruption, but ordinary people would not feel the effects of the cuts because Ukraine could fall back on underground reserves and alternative sources of gas.

According to official figures, Ukraine consumed an average of 283 million cubic metres of natural gas a day, with 60 million produced in Ukraine, 118 million coming from the Central Asian state of Turkmenistan and the rest from Russia.

'Everything depends on weather conditions'

Yekhanurov had also said his country had a contractual right to take 15% of the gas transiting Ukraine's territory on its way to western Europe - a possibility that had raised concern in Europe, which imported 20% of its natural gas needed from Russia via Ukraine.

An energy expert from the Razumkov Centre, Volodymyr Saprykin, said: "It's likely there will be deductions" by Kiev from the gas supply destined for Western Europe.

Another expert, Petro Burkovsky from the School of Political Studies said everything would depend on weather conditions.

Burkovsky said: "If temperatures are above zero, Ukraine can hold out until the end of winter without any deductions.

"But if it freezes, the situation is more serious... and Ukraine can take gas starting in January."

- AFP