Russian/Ukrainian gas crisis deepens

Exports of Russian gas to Europe via Ukraine appear to have completely stopped amid a dispute over gas supplies between the two countries. Heating systems shut down in some parts of central Europe, as outdoor temperatures plunged to -10C or lower. Russia and Ukraine have blamed each other. Russia's gas company Gazprom has accused Ukraine of shutting off the final pipeline carrying gas to Europe, but Ukraine's Naftogaz said that would be impossible, since the taps are in Russia. The EU says it wants its own monitors to check the flow of gas. The EU depends on Russia for about a quarter of its total gas supplies, some 80% of which is pumped through Ukraine.

The list of countries that have reported a total halt of Russian supplies via Ukraine includes Romania, the Czech Republic, Slovakia, Bosnia-Hercegovina, Bulgaria, Croatia, Greece, Hungary, Macedonia, Serbia, and Austria. Italy said it had received only 10% of its expected supply. The row comes amid a cold snap across Europe that is likely to push up demand for gas. Bulgaria says it has sufficient supplies for just a few more days.

Europe's need for gas is likely to increase. Economic growth, when it resumes after the current recession, will mean more demand for electricity. Gas accounts for about a fifth of the EU's electricity and the share is likely to grow, partly because gas produces less by way of greenhouse gas emissions than coal or oil. The EU does have other suppliers, including Norway and Algeria by pipeline, and Qatar and Algeria, again, by ship. But Russia, with the world's largest gas reserves and an extensive network of pipelines to Europe, is likely to be increasingly dominant.