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Low Probability of Russia’s Ceasing Gas Supplies to Ukraine: Experts

Business Materials 8 February 2008 20:07 (UTC +04:00)

Ukraine, Kiev, 8 February /corr. Trend Z.Novozotovski / The probability, that Gazprom will cease the gas supply to Ukraine from 11 February as stated by the Russian monopolist, is very low.

"Disconnection will not take place. Most probably this is a reaction of Gazprom to the statement by the Ukrainian Government regarding White Stream Project, as well as regarding the possible price increase for transit of the Russian gas via the territory of Ukraine," Constantine Lesninchiy, the Managing Director on Sales and New Markets of the Ukrainian Investment-Financial Group 'Sokrat' reported to Trend .

Earlier, the Prime Minister of Ukraine, Yulia Timashenko, highlighted his intention to construct a White Stream Gas Pipeline in co-operation with the European Union, which will connect the Central Asia with the EU countries via Black Sea and Ukraine.

The expert stated that Gazprom's position in this regard will be very keen. He did not exclude that, however, it will increase the price for the gas being imported to Ukraine in a medium-term perspective.

The Director of the Energy Programs of 'HOMOS' Center, Mikhail Gonchar, considers that Gazprom technically can not cease gas supplies to Ukraine, and its statement on this issue is only for the threatening purpose.

"If such steps are taken by Gazprom, there will be a boomerang and it will come back to itself. I think that in this situation, Gazprom will risk, as well as will again support its reputation of a structure which is non-transparent and uses its resources as an arm," Gonchar said.

According to the statement by Gazprom, till 7 February, Ukraine had run up $500mln debt for 1.5bln cu.m of gas imported, but still has not paid for the same.

Taking into consideration that the supplies of the Russian gas to Ukraine are not envisaged with the balance of Ukraine for 2008, Gazprom demands the Ukrainian side to, without delay, create legal grounds for it, sign relevant contracts and acts, and also pay off all its debts, to ensure their continuation.

It is not done, Gazprom promises to cease the Russian gas supply to Ukraine. 'Neftogaz of Ukraine' considers groundless, the accusations of the Russian Gazprom of unapproved gas choice of the Ukrainian companies.

On 8 Feb, the First Deputy Chairman of 'Neftogaz of Ukraine', Igor Didenko, left for Moscow to hold talks with Russian Gazprom regarding the regulation of the conflict on gas supplies to Ukraine.

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