Ukraine payment averts gas cut-off

UKRAINE PAID in full for recent deliveries of Russian gas yesterday, apparently averting the danger of another dispute between…

UKRAINE PAID in full for recent deliveries of Russian gas yesterday, apparently averting the danger of another dispute between Moscow and Kiev and disruption to EU fuel supplies.

Kremlin-controlled energy firm Gazprom confirmed receipt of the payment just hours after Russian prime minister Vladimir Putin had warned that Russia would cut supply to Ukraine tomorrow if the money failed to arrive.

Ukraine is a transit country for one-fifth of the gas used by the EU.

Mr Putin made his threat after Ukrainian security agents loyal to Ukrainian president Viktor Yushchenko tried to search the offices of the country’s pipeline operator.

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On Wednesday, they raided the headquarters of state gas firm Naftogaz, which is controlled by Ukrainian prime minister Yulia Tymoshenko. The two politicians have become bitter rivals since jointly leading the 2004 Orange Revolution. “If as a result of law enforcement actions and arrests of a number of officials there will be no payment [for Russian gas deliveries], it will lead to the stoppage of our energy deliveries to our customers in Ukraine as well as customers in Europe,” Mr Putin said.

Gazprom cut the gas flow to Ukraine over unpaid bills on January 1st, and subsequently cut shipments to the EU because Kiev was allegedly siphoning it off en route.

The crisis lasted almost three weeks, depriving millions of eastern Europeans of heating.

The Ukrainian security service says its raids are part of an investigation into Naftogaz’s alleged theft of gas intended for transit to the EU. Naftogaz rejects that claim and says the inquiry is a politically motivated attack by Mr Yushchenko on a company run by allies of Ms Tymoshenko, who intends to stand against him in presidential elections due before next January.

She is well ahead of him in opinion polls. The leaders’ feud has continued to deepen despite the economic crisis.

Daniel McLaughlin

Daniel McLaughlin

Daniel McLaughlin is a contributor to The Irish Times from central and eastern Europe