PRZOOM - /newswire/ -
Warsaw, Poland, 2006/01/01 - Following recent price dispute between Gazprom and Ukraine, Russia's natural gas monopoly reduced and in some transit routes halted gas distribution. Hungary today stated that it had already been affected by minor slowdown..
[PRZOOM FirstCall] - Gazprom had given Ukraine a deadline to agree paying 5 times it previously paid for natural gas, which accounts for about a 1/3 of the consumption in the country of 47M inhabitants.
On last Saturday, Russian President Vladimir Putin said Ukraine could continue paying the old price of $50 per 1,000 cubic meters for the 1st quarter, but only if Ukraine agreed by the end of the day to agree paying a new price of $230 starting on second quarter 2006.
Gazprom spokesman Sergei Kuprianov said that such dispute could had been avoided as Ukraine refused numerous offers including a $3.5B loan.
Few energy specialists stated on Sunday that Russia natural gas sales represents 15% of the total natural gas consumption of the European Union. Only Ukraine very neighbors may be affected by gas slowdown.
Ukraine shares borders with Russia (1,576 km), Slovakia (97 km), Hungary (103 km), Moldova (939 km), Poland (526 km), Romania [south] (169 km), Romania [west] (362 km), and Belarus (891 km).
The Russian joint-stock company Gazprom (gazprom.com) was established in February 1993 in compliance with the Decree of the President of the Russian Federation dated 5 November 1992, and the Resolution of the Council of Ministers, the government of the Russian Federation, dated February 17, 1993. The major shareholder of the Company is the state having 38,37% of the shares (as of September 1, 2002).
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