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Ukraine’s Naftogaz cut off gas supplies to the Balkans

January 07, 2009
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On Tuesday, January 6, the Ukrainian state company Naftogaz cut off natural gas supplies to Moldova that was transiting via Southern Moldova to the Balkans. On January 1, Russian gas monopoly Gazprom cut off gas supplies to Ukraine in a dispute over debts and pricing.

According to a source at Moldovagaz (Gazprom is the main shareholder of this Moldova-based company), this action of the Ukrainian company will not affect the supply of natural gas consumers in Moldova. "Moldovagaz is supplied with gas through Ananieva-Chernivtsi-Pogoroceni pipeline that is located in the northern part of Moldova and the [Moldovan] consumers will not be hurt," said this source to the Moldovan news agency BASA-pres.

According to Reuters, Naftogaz accused Moldovagaz on Monday of stealing natural gas that was delivered to countries in the Balkans.

"From January 1, consumers in Moldova have begun to use gas from a transit pipeline crossing Moldovan territory," Naftogaz representatives have stated.

Same representative of Moldovagaz said that accusations of Naftogaz on theft of gas by Moldovagaz are unfounded and said that this situation was caused by the dispute between Gazprom and the Ukrainian company.

On January 7, at an extraordinary meeting of the Moldovan government, Prime Minister Zinaida Greceanîi has appealed to consumers to continue saving energy. She also addressed the accusations voiced by Neftegaz and some Ukrainian officials.

"The situation is not simple, but remain under control. The Republic of Moldova does not steal gas, as some Ukrainian officials stated, on the contrary, we meet all contractual commitments and Moldova must not suffer as a result of disagreements between Ukraine and Russia", Moldovan Prime Minister Greceanîi was cited in a communiqué of the Government’s press service.

Several European countries - Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey - will be affected by halt in gas shipments from Russia through Ukraine. Some countries have announced a drop in supplies of natural gas imported from Russia, following this dispute between Moscow and Kiev. Thus, Croatia has announced that its deliveries have decreased by 7 percent, Bulgaria - by 10-15 percent, and Greece – by 33%. But Turkey has increased by 17% its import of gas directly from Gazprom - via the Black Sea - to compensate for declining supplies transiting Ukraine.