Russia Says European Gas Deal is Off
Sunday, January 11, 2009 (5:55 pm)
By Stefan J. Bos, Worthy News Europe Bureau Chief
BUDAPEST, HUNGARY (Worthy News) — Russia said late Sunday, January 11, that a deal to resume the supply of natural gas to Europe is off, crushing hopes of Europeans suffering without heat this unseasonable cold winter.
Russian President Dmitry Medvedev said an agreement on international monitoring of gas transit through Ukraine cannot be implemented until contradictions in the document are cleared up.
Earlier in the day, Ukraine, Russia and the European Union signed an agreement that would enable the resumption of Russian natural-gas supplies via Ukraine to Europe, where at least a dozen people have frozen to death.
But Ukraine attached a handwritten note to the document asking for a declaration to be attached. Several of the clauses in the declaration contradict Russia's position.
INVALID DOCUMENT
After reviewing the declaration, President Medvedev said Russia was forced to consider the signed document invalid. "Those who signed the agreement adding some amendments should realize that this document is invalid," he said on Russian television. "That is why I ordered the government to to fulfill the agreement with the EU signed on Saturday. I asked you Mr. Foreign Minister to inform our European colleagues that they find themselves in a very difficult situation," Medvedev added.
He warned the accord would not be implemented by Russia until the stipulations of the declaration are removed or revoked in any other way by the Ukrainian side.
European Union president, Czech Prime Minister Mirek Topolanek, had mediated the deal. In comments aired by Russia Today television, Ukrainian Prime Minister Yulia Tymoshenko said it would allow international observers to monitor the natural gas flows from Russia.
"Today we have signed an agreement to give access for EU monitors to visit all Ukrainian gas stations and exporting stations from the Russian side," she said.
STEALING GAS
Russian energy giant Gazprom says monitors are needed to ensure all the gas it sends via Ukraine will reach European customers.
Moscow halted deliveries nearly a week ago, saying Ukraine was stealing natural gas, charges Kyiv denies.
But the Russian president's announcement is bad news for Hungary and nearby countries such as Serbia, where Serbian Foreign Minister Vuk Jeremic expressed concern about the situation.
"Serbia depends 100 percent on the Russian gas coming from Ukraine physically," he explained. "And that supply has stopped. Serbia is in a very difficult situation."
Even when gas deliveries resume to Europe, Ukraine will not receive Russian natural gas. Moscow first wants Kyiv to settle alleged unpaid bills of more than $2 billion. Gazprom also demands Ukraine pays $450 per 1,000 cubic meters for future natural gas deliveries, about twice the amount offered by Kyiv.
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