Q&A: The stormy relations of Russia, Ukraine over gas - (Reuters: Putin)
(Reuters) - Russia broke off talks with Ukraine on Tuesday after Kiev angered the Kremlin by asking the European Union to modernize its gas pipeline network, which supplies one fifth of Europe's gas.
The following is a factbox on the main issues in gas ties between Ukraine and Russia.
WHAT IS AT STAKE?
* Big powers such as Europe, Russia and the United States are jostling for leverage over Ukraine's pipelines, which carry just more than one fifth of the gas the European Union consumes.
A gas dispute between Russia and Ukraine left many European Union customers without gas for nearly two weeks in the depths of winter this January.
WHAT CAUSED THE LATEST SPAT?
* European officials on Monday welcomed a Ukrainian plan to modernize its gas network to increase capacity. Russia is dismayed that it was not included in the discussions.
* Prime Minister Vladimir Putin threatened to review ties with the European Union and officials warned that the risk of gas supply disruptions would rise if Russian interests were ignored.
* Ukrainian Prime Minister Yulia Tymoshenko said the overhaul of the gas transit system was not aimed against Russia and officials in Kiev says talks had also taken place with Moscow.
HOW MUCH GAS GOES THROUGH UKRAINE?
* Russia's gas export monopoly Gazprom will export about 120 billion cubic meters (bcm) of gas to Europe via Ukraine in 2009, according to a contract signed in January.
The contract with Gazprom says Ukraine will import 40 bcm of gas, although because of falling formation, Ukraine says it only needs 33 bcm of Russian gas out of a total of 56 bcm of gas it says it will use this year.
* Last year, Ukraine imported 49 bcm of gas for its own use at a cost of about $8.6 billion, according to Ukraine's state gas company, Naftogaz.
WHAT DOES RUSSIA WANT?
* Russia's Gazprom says it wants to be involved in modernizing Ukraine's gas network and that if it played a role in managing the network then gas supplies to Europe would be more secure.
* Ukraine has rejected the idea of a joint Russian-Ukraine consortium to operate the pipelines, which Kiev says are a strategic asset.
The following is a factbox on the main issues in gas ties between Ukraine and Russia.
WHAT IS AT STAKE?
* Big powers such as Europe, Russia and the United States are jostling for leverage over Ukraine's pipelines, which carry just more than one fifth of the gas the European Union consumes.
A gas dispute between Russia and Ukraine left many European Union customers without gas for nearly two weeks in the depths of winter this January.
WHAT CAUSED THE LATEST SPAT?
* European officials on Monday welcomed a Ukrainian plan to modernize its gas network to increase capacity. Russia is dismayed that it was not included in the discussions.
* Prime Minister Vladimir Putin threatened to review ties with the European Union and officials warned that the risk of gas supply disruptions would rise if Russian interests were ignored.
* Ukrainian Prime Minister Yulia Tymoshenko said the overhaul of the gas transit system was not aimed against Russia and officials in Kiev says talks had also taken place with Moscow.
HOW MUCH GAS GOES THROUGH UKRAINE?
* Russia's gas export monopoly Gazprom will export about 120 billion cubic meters (bcm) of gas to Europe via Ukraine in 2009, according to a contract signed in January.
The contract with Gazprom says Ukraine will import 40 bcm of gas, although because of falling formation, Ukraine says it only needs 33 bcm of Russian gas out of a total of 56 bcm of gas it says it will use this year.
* Last year, Ukraine imported 49 bcm of gas for its own use at a cost of about $8.6 billion, according to Ukraine's state gas company, Naftogaz.
WHAT DOES RUSSIA WANT?
* Russia's Gazprom says it wants to be involved in modernizing Ukraine's gas network and that if it played a role in managing the network then gas supplies to Europe would be more secure.
* Ukraine has rejected the idea of a joint Russian-Ukraine consortium to operate the pipelines, which Kiev says are a strategic asset.
