Tuesday, March 04, 2008

Gas: Russia cuts gas supplies to Ukraine

In an escalation of its ongoing dispute with Ukraine, Gazprom has cut supplies by 25%.

Gazprom alleges Ukraine owes the Russian gas giant around $600 million for gas already supplied. Also in dispute is a company through which gas is imported to Ukraine.

The reduction is not expected to have the same negative effect on Western Europe, as the 2006 crisis that caused shortages across Western Europe.