Ukraine President Seeks U.S., EU Support in Russian Gas Dispute

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By Daryna Krasnolutska

Jan. 2 (Bloomberg) -- Ukrainian President Viktor Yushchenko sought support from U.S. President George W. Bush, the European Union and leaders of seven other countries after Russia cut off gas supplies.

Yushchenko wrote to the leaders of the U.S., Austria, Germany, Italy, France, the Czech Republic, Slovakia and Hungary, as well as to European Commission President Jose Barroso, explaining the natural gas dispute, according to a statement on the president’s Web site.

Ukraine also sent a delegation, which includes Energy Minister Yuriy Prodan and Deputy Foreign Minister Kostyantyn Yelisyeyev, to the EU to explain the situation. They have met with officials from the Czech Republic, which took over the EU’s rotating presidency yesterday, and have left for Bratislava.

Russian state-run gas monopoly OAO Gazprom, supplier of a quarter of Europe’s gas, yesterday cut deliveries to Ukraine after both countries failed to reach agreement on gas prices and transit fees for this year. Ukraine, which depends on Russia for 71 percent of its gas needs, carries 80 percent of Russia’s European exports of the fuel across its territory.

Ukraine rejected a Russian demand it pay $250 per 1,000 cubic meters of natural gas, compared with the current $179.50, while Russia rejected a Ukrainian demand to increase the transit fee. Russia paid Ukraine $1.70 to pump 1,000 cubic meters a 100 kilometers (62 miles) in 2008 and insisted on keeping the price unchanged, as per a contract which runs to 2010.

To contact the reporters on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net;

Last Updated: January 2, 2009 09:27 EST