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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters You Witness News Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Europe's gas flowing day after Moscow cuts off Kiev Fri Jan 2, 2009 5:29am EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Christian Lowe and Sabina Zawadzki MOSCOW/KIEV (Reuters) - Russian gas kept flowing to European Union states on Friday, a day after Moscow cut off flows to Ukraine in a contract dispute, but importers across the continent were watching for signs their supplies were faltering. Europe gets about a fifth of its gas via pipelines through Ukraine. Moscow said these supplies should be unaffected by the cut-off unless Kiev starts illegally diverting the gas. Russia expected to know later in the day whether this was happening. Energy firms in Germany, France, Poland, Romania, Austria and Italy said on Thursday they had not yet seen any drop in supply. Europe, where temperatures fell below freezing overnight, has enough gas stockpiled to manage without Russian supply for several days, analysts said. After both the European Union and the United States urged a quick solution to the row, Ukraine said its negotiators would fly to Moscow to resume talks that broke down on New Year's eve, but there was no confirmation they had arrived. The row could raise new doubts about Moscow's reliability as an energy supplier and fuel suspicions in the West -- already running high since Russia's war with Georgia last August -- that the Kremlin bullies its pro-Western neighbors. Though Russia denies politics is behind the dispute and says it is about prices and debts, the two ex-Soviet neighbors have clashed over a drive by Ukrainian President Viktor Yushchenko to take his country into the NATO alliance. Ukrainian Energy Minister Yuri Prodan was due to arrive on Friday in the Czech Republic, holder of the EU's rotating presidency, to reassure Europe about supplies, a statement from Ukraine's president said. If talks between Ukrainian state energy company Naftogaz and Russia's gas export monopoly Gazprom do resume, the gulf between their negotiating positions is wide. Alexei Miller, CEO of Gazprom, said on Thursday he wanted Ukraine to pay $418 per 1,000 cubic meters (tcm) of gas, compared with the $179.5 Kiev paid in 2008. Ukraine says the most it can afford to pay is $235. There are also disputes over the amount Russian will pay for the right to ship its gas to Europe via Ukraine, and the $2 billion Gazprom says it has still not received from Kiev in gas arrears. Gazprom charges about $500/tcm to customers in the European Union, though that is likely to fall by up to half this year. Gas prices track oil and crude has plummeted in value. PIPELINE PRESSURE The EU is keen to avoid a repeat of a January 2006 row when Moscow cut off supplies to Ukraine, causing a brief reduction in gas deliveries to other parts of Europe in mid-winter. Gazprom said it was watching for signs that Ukraine was siphoning off gas destined for customers in Europe. Continued... 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