dcsh 2008-2-12 01:16 PM
Gas row overshadows Moscow talks
Gas row overshadows Moscow talks
[size=2] [table=203] [tr][td] [img=203,152]http://newsimg.bbc.co.uk/media/images/44420000/jpg/_44420412_yshchenko_afp203b.jpg[/img] Viktor Yushchenko's visit comes amid a major gas dispute
[/td][/tr] [/table] [b]Ukrainian President Viktor Yushchenko is due in Russia in an effort to improve ties between the two countries.[/b][/size][size=2]His discussions with President Vladimir Putin come amida dispute over gas debts that could see Moscow cutting its gas supplyto Ukraine.[/size]
[size=2]Russian gas monopoly Gazprom said it will reduce supplies to Ukraine if the country does not repay debts of $1.5bn.[/size]
[size=2]Gazprom, which supplies 25% of Europe's gas, said the dispute will not affect supplies to the rest of Europe.[/size]
[size=2]But as most of the company's gas supply to westernEurope passes through Ukraine, concerns remain that the row couldescalate into a repeat of two years ago.[/size]
[size=2]In January 2006, gas shipments to Europe were disruptedafter Russia halted fuel supplies to Ukraine for several days amid afierce argument over price hikes.[/size]
[size=2][b]US concern[/b][/size]
[size=2]Although Gazprom claims the current dispute is purelycommercial, fears have been raised that Moscow might be exploiting itsenergy resources to exert political pressure on its neighbours.[/size]
[size=2]US State Department spokesman Sean McCormack said Washington was monitoring the situation.[/size]
[size=2]"We've made it quite clear in the past our views as tothe use of commercial levers to try to achieve some political purposein the end," he said.[/size]
[size=2]On Monday, Gazprom and the Ukrainian state energycompanies failed to resolve the gas debt dispute during several hoursof talks. [/size]
[size=2]Gazprom extended its deadline for cutting a quarter ofgas supplies to Ukraine until 1500GMT on Tuesday, to allow MrYushchenko to discuss the matter with Mr Putin.[/size]
[size=2]Meanwhile, Ukraine's pro-Western Prime Minister YuliaTymoshenko appealed for calm and suggested that Gazprom's threats wereempty.[/size]
[size=2]She said that Russian First Deputy Prime Minister Sergei Ivanov had informed her "that a cut-off will not take place".[/size]
