Russia,Ukraine must end gas row, clarify prices: IEA

Russia cut off the gas to its neighbour Ukraine on Thursday after a contract dispute but increased supplies to other European states.

Russia,Ukraine must end gas row, clarify prices: IEA

Russian gas export monopoly Gazprom should settle its payment dispute with Ukraine without putting European gas supplies at risk and be more transparent about its pricing, the International Energy Agency (IEA) said on Thursday.

Russia cut off the gas to its neighbour Ukraine on Thursday after a contract dispute but increased supplies to other European states to try to reassure customers worried about possible disruptions.

"Commercial disputes, such as the current dispute between Gazprom and Naftogaz of Ukraine, should be settled by normal dispute resolution mechanisms and in a manner that does not impact on third-party gas customers," the IEA said in a statement.

The intergovernmental organisation which acts as energy policy adviser to 28 member countries, repeated its call for greater transparency in European gas transit and sales, particularly what part RosUkrEnergo -- Gazprom's 50/50 intermediary gas venture with two Ukrainian businessmen -- played in the supply of Russian gas to Europe.

"Where intermediary agencies are involved, the gas flow and pricing arrangements should be much more transparent, including transit costs," the IEA said. Moscow and Kiev say they will honour their contracts to supply gas to European customers, who analysts say have enough reserves to manage without Russian supplies for a few days, but Ukraine losing its gas supplies could impact flow rates to Europe for technical reasons.

Reuters
Last Mod: 01 Ocak 2009, 16:44
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