Moscow, Kiev Trade Angry Accusations
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Russia and Ukraine traded angry accusations in their energy war yesterday, escalating the conflict sparked when Moscow halted gas supplies to its neighbor over the weekend.
Both countries ignored European Union calls to resume negotiations. The E.U. imports a quarter of its total gas consumption from Russia, 80% of which passes through Ukraine.
Russia sought to shift the blame for the crisis on to its neighbor, accusing it of “stealing” gas that flows through a pipeline in its territory destined for the rest of Europe.
With Russia’s reputation as a reliable supplier of gas in question, the state-controlled monopoly, Gazprom, has repeatedly assured Western consumers that they would not suffer from the dispute.
However, many European countries reported substantial drops in the amount of gas they were receiving.
Russia reduced Ukraine’s share of the gas on Sunday after its refusal to accept a fourfold increase in prices.
Gazprom yesterday notified Ukraine that it would be sending additional supplies through the pipeline to compensate for the shortfall suffered by the rest of Europe.
“With the aim of preventing a possible energy crisis, caused by Ukraine illegally taking gas, Gazprom has taken the decision to deliver additional gas into the gas transport system of Ukraine,” it said.
“We stress that the additional delivery of gas is not designed for Ukrainian consumers but is meant for delivery to consumers outside the borders of Ukraine.”
Ukraine angrily rejected the charge that it was stealing supplies, saying it was using only its own reserves and supplies from Turkmenistan.
President Yushchenko’s government accused Russia, with whom relations have markedly deteriorated since the 2004 Orange Revolution, of a vindictive plot.
“A scenario aimed at creating economic pressure and blackmail has started,” the Ukrainian foreign ministry said in a statement.”It aims in the end at destabilizing Ukraine’s economy and disrupting Russian gas supplies to consumers in Europe.”
Both countries stand to lose much from the dispute, at whose heart lies a row over Russian subsidies to the former member of the Soviet Union. A continued gas shutoff could cripple Ukrainian industry. Ukraine also argues that the price increase would send its economy into freefall.
Mr. Yushchenko has asked for a smaller increase phased in over five years to cushion the economy from shock.
Moldova, another former Soviet country that has sought closer ties to the West, announced yesterday that Russia had halted its gas supplies after it refused to accept a doubling of prices.