JKX 2006

Russia's Gazprom to restore European gas supplies on Tuesday UPDATE
MOSCOW (AFX) - Russian energy giant Gazprom will restore natural gas
supplies to European customers on Tuesday, the state-controlled company's deputy
chairman was quoted by Russian news agencies as saying after several European
countries reported shortages.
"We have taken all necessary measures to supply Europe with gas according to
contracts. By tomorrow evening, full supply to Europe in accordance with these
contracts will be restored," Alexander Medvedev, who is also Gazprom's export
chief, said.
Gazprom also said it was ready to restart negotiations with the Ukrainian
side after politically-charged talks between the two countries collapsed,
Russian news agencies cited a telegram sent by the company to Ukraine's
state-owned energy firm Naftogaz as saying.
"We express our readiness for negotiations on regulating relations in the
gas sphere," the telegram said.
"With the aim of preventing a possible energy crisis, provoked by the
illegal siphoning of gas by the Ukrainian side, Gazprom has had to take a
decision on additional supply of gas in the Ukrainian transport system of 95 mln
cubic metres per day," the telegram continued.
"The gas is intended exclusively for consumers outside Ukrainian territory,"
Gazprom said after company officials earlier accused Kiev of "stealing" gas
destined for European customers further downstream.
A fifth of European gas supplies transit through Ukraine from Russia and
several European countries, including France, Germany and Poland, reported
shortages after Moscow shut down natural gas supplies to Ukraine on Sunday in a
bitter price dispute.
The European Union's foreign policy chief Javier Solana has called on both
sides to resume talks, a spokeswoman said, ahead of a meeting of EU energy
officials in Brussels on Wednesday to discuss the crisis.
In Vienna Austrian Minister for Economic Affairs Martin Bartenstein, whose
country assumed the six-month presidency of the EU Sunday, welcomed the Gazprom
announcement.
Saying Medvedev had "guaranteed the full supply would be restored to
European importers within 24 hours," he told the Austria Press Agency, "If what
Gazprom announced occurs, we will see an easing of the situation."
Ukrainian Energy Minister Ivan Plachkov earlier denied Kiev was siphoning
Russian gas bound for Europe but said it would do so if temperatures plunged
below freezing.
On Sunday, Gazprom said it had reduced supply of its gas export trunk
pipeline by 120 mln cubic metres per day -- equivalent to Ukraine's supply.
But Naftogaz said Russia had cut the supply by 187 mln cubic metres.
Russia and Ukraine have been locked in a bitter price dispute for months,
with Moscow asking for 230 dollars per 1,000 cubic metres of its gas and Kiev
calling for a lower price phased in gradually.
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