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ZENGAS - Sun, 01 Jan 06 :

sure it will affect Ukraine. But Britain is already paying the highest for Gas I believe in Europe. Germany will definitely have to raise if it continued after 2 - 3 months.


EUROPEAN DISRUPTIONS?

Gazprom spokesman Sergei Kupriyanov said exports to Ukraine had been cut by 120 million cubic metres a day -- equivalent to Ukraine's total daily imports.

He said 360 million cubic metres a day were being shipped as normal via Ukraine to other countries, and if supplies to western Europe were disrupted, Ukraine would be to blame.

"The Ukrainian authorities were determined to have a conflict from the start, and from January 1 to ... start stealing gas from European consumers," Kupriyanov said.

Eighty percent of Russian gas exports to western Europe pass through Ukraine.

The Ukraine Naftogaz statement, contradicting Gazprom's figures, said the volume of gas reaching Ukraine from Russia had been cut by 187 million cubic metres a day.

Russia's NTV television -- owned by Gazprom -- quoted Alexander Nemudrov, a Gazprom official at a pumping station in Slovakia, as saying gas flow out of Ukraine was already falling.

That suggested Ukraine was making up for its shortfall by drawing gas intended for other countries. Gazprom officials in Moscow said they would not know definitely if that was the case until later on Sunday.

The biggest European importers of Russian gas are Germany, Italy and France, which would have to draw down reserves of gas stored underground or seek alternative supplies if there was a major supply disruption.

Moscow is seeking a rise in the price of gas it sells to Ukraine to $230 (134 pounds) per 1,000 cubic metres from the current $50 -- a level that reflects Soviet-era subsidised rates. Ukraine agrees in principle but wants a transitional period.


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