Good Move

The Czech ambassador to Russia made statements today signaling that the EU will begin looking to diversify its gas providers after the most recent dispute between Russia and Ukraine.  He also said the two nations risk losing the EU's confidence in Russia and Ukraine as political and economic partners.  

The ambassador cited the proposed Nabucco pipeline as an alternative -- a $7- to $8-billion dollar project that would bring Central Asian oil to Europe, circumventing Russia.  The project is slated to begin in 2010, though it faces some major challenges and depends on the acceptance of Turkmenistan, an uncertain partner.  

Second Attempt

Russian and Ukrainian officials have agreed to meet for talks over the ongoing gas dispute between the two nations. The meetings will be held on Saturday in Moscow, but some express grave pessimism over the outcome

"(An agreement) is practically impossible," says Slovak Prime Minister Robert Fico.  "The conditions laid by one and the other side are so contrasting that this simply cannot work."

Gas Spat Continues

The European Commission is warning of legal action towards Russian state-owned Gazprom and Ukrainian Naftogaz if the two do not move quickly towards a solution in their dispute over gas shipments.

Both sides seem to be waiting for the other to admit defeat, says a BBC correspondent.

Just When You Thought it Was Over

Just when it looked as if the dispute between Russia and Ukraine over European gas shipments was solved, Russia claims that Ukraine is not sending the resumed gas flow westward into Europe.  Ukraine called on Russia to stop "blackmailing" them.  

The latest is a symptom of the lack of trust between the two countries, says one BBC reporter.  

EU monitors in Russia said the gas flow released was "very limited."

Eastern Gas

The NY Times reports that a deal has been struck to resume gas supplies between Russia and Europe via Ukraine and to send European monitors to the area today. 

Russia says, barring any future obstacles, the pipes will open tomorrow morning.  Still, the agreement does not address the demand by Russia that Ukraine begin paying higher prices for gas close to market value.  

Russia has been selling the gas to the Ukraine at a discount to help that country develop, but now says Ukraine has reached a level of development that requires it pay near-market-value prices. Ukraine maintains this would bankrupt the country's fragile economy.

Passing Gas

Gas shortages have reached intense levels across much of Eastern and Western Europe today, stemming from a dispute between Russia -- a major supplier to the region, and Ukraine -- the major transit point for that supply.

The dispute focused on details of a contract between Russia and Ukraine, which prompted Russia to shut off supplies through Ukraine (whom it accused of stealing gas en route) on New Years Day. Ukraine says Russia was manipulating the pumps.

Europe is startin' to feel it.

Gas Problems

Russia and Ukraine are at it again. Russia cut off the flow of gas to the Ukraine on New Years Day, citing a $1.6 Billion bill. Russia is accusing Ukraine of stealing 25 million cubic meters of gas, disturbing its flow to European markets. Ukraine, in turn, says the shortage came from Russia's "technical manipulations."

European nations have been hesitant to get involved. While Europe gets a quarter of its gas supply from Russia -- Ukraine being the primary route -- they say they have enough reserves to cope with any interruptions for the time being.