Russia was coming under growing pressure last night to resolve its dispute with Ukraine over gas prices after supplies to Europe became increasingly disrupted, writes Kitty Holland
In Ireland the chairman of the Commission for Energy Regulation, Tom Reeves, warned that threats to gas supplies are likely if the dispute is not resolved. He said the State's supply was linked to supplies on the continent.
"The dispute can't really be allowed to continue," he said on RTÉ's Morning Ireland programme.
The Russian state-owned energy company Gazprom switched off the supply to Ukraine on Sunday after a bitter, politically charged dispute over gas prices. Kiev has refused to accept a fourfold price rise dictated by Moscow. A drop in deliveries to western Europe sent through the same pipeline network was noticed within 24 hours.
Gazprom has accused Ukraine of siphoning off about $25 million (€21 million) worth of natural gas from transit supplies destined for western Europe, but most EU countries are blaming Russian president Vladimir Putin for the crisis.
Last night Gazprom appeared to bow to international pressure by increasing transit supplies flowing through Ukraine by the amount allegedly siphoned off.
Bord Gáis, meanwhile, has moved to reassure consumers that there will be no threat to supply or a price increase in the short term.
However, the UK remained on alert over potential gas price rises with Energy Minister Malcolm Wicks admitting that UK supplies could be hit.
German's Economy Minister Michael Glos called on Moscow to compromise in its feud with Ukraine. "Russia has the presidency of the G8 and therefore has to act responsibly," he said.
Five EU countries yesterday confirmed that the amount of gas arriving from Russia had fallen dramatically. Germany, Austria, Poland, Hungary, and Slovakia all reported a sharp drop in supplies, with Hungary saying its gas deliveries had gone down by 40 per cent.
"This situation cannot be accepted. Russia is mixing its foreign policy with its policy for gas supplies," Poland's Deputy Prime Minister Ludwik Dorn said.
In Washington, the US State Department said it was concerned that the gas stoppage created "insecurity in the energy sector in the region and raises serious questions about the use of energy to exert political pressure".
Russia took over the presidency of the G8 nations on Sunday, and President Putin has promised to make energy security a cornerstone of his leadership.
Moscow attempted to shift all blame for the conflict to Kiev. Gazprom deputy chairman Alexander Medvedev said that since delivery of gas had stopped, Ukraine had siphoned off 100 million cubic metres from pipelines crossing the country.
Ukraine has denied that gas had been taken.
Andrei Illarionov, a former senior Kremlin adviser who resigned last week, claimed yesterday that Gazprom had no legal right to stop gas flows to its neighbour. He said a price of $50 per 1,000 cubic metres had been fixed for five years in 2004. Moscow now wants $230. - (Additional reporting Guardian service)
