UK: Power shift

Russia’s warning about gas shortages in the EU comes right Opec-style cartel with other major producers

Britain was given a sharp reminder of the dangers to its energy supplies yesterday when Gazprom warned that western Europe could be hit by gas shortages. The Russian gas provider said a long-running row with Ukraine could disrupt supplies this winter.

The fears were raised 24 hours before Russia hosts a meeting of the world’s major gas suppliers to set up an Opec-style production cartel that could push up the price of energy in Britain and elsewhere. Energy experts warned that the two events demonstrated that Russia was using energy as a political weapon, and argued Britain should accelerate its switch to renewable power in order to reduce its dependence on unpredictable carbon fuel suppliers.


Russia triggered fears of an energy “cold war” two years ago and again last year when it threatened to cut off gas first to the Ukraine and then to Belarus. This time Russia is threatening Ukraine over an alleged $2bn of arrears. Although Russia exports a relatively small amount of gas to Britain, such difficulties could push up prices for alternative supplies from Norway or elsewhere. Viktor Zubkov, who is Russia’s first deputy minister as well as chairman of Gazprom, said: “We cannot rule out that the position of the Ukrainian side and certain steps, which are linked to gas transit through Ukrainian territory, could lead to a disruption of supply stability to Europe.”

The Moscow company said it offered to let Kiev redeem its debt by allowing Gazprom to offset it against transit fees for next year. “So far no solution has been found because of the non-constructive position of the Ukrainian side,” Zubkov said. About 80% of Russian gas exports to Europe flow through Ukraine, which insisted it would ensure the transit of supplies to European Union countries next year. “Ukraine is ready to give guarantees of uninterrupted gas supplies in 2009 to European gas consumers,” said Oleksander Shlapak, chief economic aide to the Ukrainian president, Viktor Yushchenko.

The promise did little to reduce tensions. Andris Piebalgs, the EU energy commissioner, indicated he was ready to travel to Moscow early in the new year for emergency talks with the Russians and said he was “very worried”. Meanwhile, a loose grouping of gas producers, known as the Gas Exporting Countries Forum, is to meet in Moscow tomorrow to sign a charter to formalise the organisation, officials at the Russian energy ministry said.

Guardian