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Russia gas row disruption spreads to Bulgaria
Sat Jan 3, 2009 6:05am EST
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By Guy Faulconbridge and Sabina Zawadzki
KIEV (Reuters) - Russian gas flows to Bulgaria dropped on Saturday in a fresh sign that Moscow's decision to cut off its neighbor Ukraine in a row over pricing was disrupting supplies to some European Union members.
Bulgaria's Bulgargaz operator joined energy firms in Poland, Romania and Hungary in saying they had noted falls in supply, though the main pipeline through the Czech Republic to Germany -- Europe's biggest economy -- was working normally.
Russia has accused Ukraine of stealing gas in transit to Europe but in Kiev, state energy firm Naftogaz hit back by saying Russian gas export monopoly Gazprom had itself reduced supplies to Europe and was using "energy blackmail."
Gazprom halted supplies to Ukraine on New Year's Day, saying Ukraine had failed to pay its gas bill and talks on 2009 gas prices had broken down.
Three years after a similar dispute briefly disrupted supplies, European fears of gas flows dropping off in the dead of winter were once again becoming a reality.
The European Union, which gets a fifth of its gas from pipelines that cross Ukraine, said it would call a crisis meeting of envoys in Brussels on Monday and demanded that transit and supply contracts be honored.
"Energy relations between the EU and its neighbors should be based on reliability and predictability," the Czech presidency of the 27-nation bloc said in a statement on Friday.
The disruptions are likely to undermine Russia's attempts to present itself as a stable energy supplier and add to concern that Moscow is trying to bully its neighbors just five months after the war with Georgia.
Ukrainian President Viktor Yushchenko has angered the Kremlin by trying to join the NATO military alliance.
Europe, where temperatures fell below freezing overnight, has enough gas stockpiled to manage without Russian supplies for several days but could face difficulties should problems last for weeks, analysts said.
EUROPEAN SUPPLIES
Bulgargaz CEO Dimitar Gogov said supply levels have not fallen below a critical level but further reductions could force the company to introduce restrictions for customers.
"The pipeline pressure has dropped and we are getting smaller deliveries as of Saturday morning," Bulgargaz's chief executive Dimitar Gogov told Reuters.
Ukraine's Naftogaz issued a statement saying Russia was responsible for the fall in supplies to Europe and it urged Moscow to restart talks soon.
"The company thinks that Gazprom's position breaches international practices of holding negotiations ... and amounts to energy blackmail," the company said. Continued...
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