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Gazprom tells Ukraine to settle its gas debt
by Daniel J. Graeber
Washington DC (UPI) Apr 02, 2014


EU puts emphasis on Southern Gas Corridor
Washington DC (UPI) Apr 02, 2014 - The Southern Gas Corridor of transit networks is a necessary ingredient for energy security, a joint U.S.-European Union statement said.

European Commission President Manuel Barroso in 2009 said the transit networks envisioned under the system would provide the "building blocks" for regional energy security.

A 2009 move by Russian energy company Gazprom to cut gas supplies through Ukraine because of contractual disputes sparked concerns about Russia's grip on the energy sector. European consumers get about a quarter of their gas needs met by Russia, though most of that runs through the Soviet-era transit system in Ukraine.

EU Energy Commissioner Gunther Oettinger met Wednesday in Brussels with U.S. Secretary of State John Kerry to discuss renewed concerns about energy security in the wake of the Ukrainian upheaval.

"The [joint U.S.-EU Energy] Council reaffirmed the importance of the Southern Gas Corridor to bring gas to Europe," they said in a statement.

Part of the corridor relies on a string of pipeline networks that will tie into the Shah Deniz natural gas field off the coast of Azerbaijan.

Kerry said in a statement both sides had critical work ahead for the sake of European energy security.

"The United States and the EU have a lot of work to do in order to diversify our energy supplies," he said Wednesday.

Russian energy company Gazprom said Thursday its Ukrainian counterpart needs to take "urgent action" to settle its outstanding gas debts.

Gazprom Chairman Alexei Miller met Thursday in Moscow with Andrey Kobolev, the chief executive officer at Ukrainian energy company Naftogaz.

"The focus of the meeting fell on the necessity for Naftogaz of Ukraine to take the urgent action aimed at settling the accumulated debt for the supplied Russian gas," Gazprom said in a statement.

The Russian energy company said it's owed $2.2 billion, including overdue payments for March supplies.

Gazprom in 2009 cut gas supplies to Ukraine because of disputes over debt. The Russian company said recently it would increase by $100 per 1,000 cubic meters, the standard purchase volume, the amount Ukraine pays for gas.

The International Energy Agency last month said there have been no physical disruption in supplies of natural gas running from Russia trough the Ukrainian transit system.

Gazprom, however, said it has "grave" concerns about the working gas capacity left in Ukraine's storage facilities.

"In this situation they need to be replenished right now to satisfy the domestic demand during the forthcoming winter and, accordingly, to enable Naftogaz fulfill its obligations on uninterrupted Russian gas transit to Europe," the Russian company said.

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