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Gas cuts to Ukraine will not affect EU, Brussels officials say

Business Materials 3 March 2008 16:52 (UTC +04:00)

( dpa ) - The European Commission said Monday it had received assurances from Russian energy giant Gazprom that its reduction of gas supplies to Ukraine would not affect consumers in the European Union.

"Gazprom has today informed us of its reduction of gas supplies to Ukraine as a response to unresolved commercial disputes between the companies of both countries," a spokesman for the EU executive said.

"Gazprom have assured the European Commission that gas supplies to the EU will not be affected," the spokesman added.

The comment came in response to concerns that the about 25 per cent cut by Gazprom might affect consumers in EU member states. In previous disputes, Ukraine siphoned off gas destined to Europe for its own needs.

A row over gas pricing in late 2005 led to a 48-hour reduction in gas volumes to Europe, causing retail price spikes as far away as France.

Some 80 per cent of Gazprom gas travels to the EU via Ukrainian pipelines.

The commission called on the two sides to find a "quick and definite solution" to the latest commercial dispute.

And while it did not expect EU supplies to be altered in the immediate future, it said it might call an urgent meeting of its gas coordination group should the situation degenerate.

Speaking in Moscow, Gazprom spokesman Sergei Kuprianov said gas supplies to Europe were continuing "in full volume."

The Kremlin-controlled energy conglomerate says Ukraine owes as much as 1.5 billion dollars, but Ukrainian Prime Minister Yulia Tymoshenko argues that the debt has been paid in full.

The issue is likely to be raised by commission officials on Thursday, when Tymoshenko visits Brussels.

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