Russian gas reaches Europe again

Russian gas started reaching Europe via Ukraine on Tuesday for the first time since a contract row between Moscow and Kiev cut supplies to about 20 European countries two weeks ago.

• Slovakia, which borders Ukraine, said gas had started arriving, though Kiev said it could be up to 36 hours before supplies reach other parts of Europe, where some countries have been forced to ration supplies to customers.
• “Gas is not only flowing in the direction of Europe but it is flowing to Europe,” Alexander Medvedev, Deputy Chief Executive of the Russian gas export monopoly Gazprom, told a conference call with reporters.
• Ukraine confirmed it was receiving gas from Russia and said it would deliver it to Europe as quickly as possible.
• In European Union member Slovakia — which was badly hit by the cut-off and briefly considered re-starting a Soviet-era nuclear reactor — Economy Minister Lubomir Jahnatek said supplies had started arriving.
• The gas dispute had reflected political tension between Moscow and Kiev, with Russia opposed to formerly Soviet Ukraine’s aspirations to join the NATO military alliance.
• Gazprom said that under the new contract Ukraine would pay $360 (258 pounds) per 1,000 cubic metres of gas in the first quarter of this year, a sharp rise on the $179.5 that Kiev was paying for Russian gas last year.
• The new price is likely to come down later this year as gas tracks falling oil prices, but it could still be a huge burden for a Ukrainian economy struggling with debt and sharp falls in the hryvnia currency.