Russia Cuts Gas Supply to Ukraine

MOSCOW-Russia made good on its threat to cut off all natural gas supplies to Ukraine on Thursday-but the two uneasy neighbors took great pains to make sure their contract dispute would not leave Europe short of gas just as winter set in. Overshadowing their confrontation was the specter of 2006, when a similar dispute interrupted gas shipments to many European countries for three days. But both Russia and Ukraine now have strong interests in proving to Europe they can be reliable energy partners, and they assured other European nations they would not be affected.The cutoff was being closely watched in the European Union, which depends on Russia for about a quarter of its gas-with some 80 percent of that delivered through pipelines controlled by Ukraine."I believe we are close to accepting a compromise solution," Ukrainian President Viktor Yushchenko said in a statement Thursday. He said he expected talks to resume in the next day or two and to be concluded by Orthodox Christmas on Jan. 7.White House spokesman Gordon Johndroe urged both sides to keep in mind the humanitarian implications of any interruption of gas supply in the winter."The predictable flow of energy to Ukraine and the rest of Europe under market-based, transparent conditions is essential for stability and reliability in regional and global energy markets," Johndroe said in a statement from Washington.Russia's gas monopoly Gazprom shut off gas supplies after talks broke down over Ukraine's payments for past shipments and a new price contract for 2009.In 2006, much of the blame for the supply disruption fell on Russia, which was accused of using its energy resources as a political weapon to punish Ukraine's Western-leaning government. European countries then began to question Russia's reliability as an energy partner and look for ways to diversify their supplies.On Thursday, Gazprom said it had boosted natural gas deliveries through other pipelines to Western Europe....
By LYNN BERRY and MARIA DANILOVA, Associated Press Writer
Maria Danilova reported from Kiev, Ukraine. Associated Press Writer Robert Wielaard contributed reporting from Brussels.


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