Russian energy giant Gazprom cut gas supplies 35 per cent to Ukraine on Monday over a payment dispute, according to dpa. The Russian natural gas monopolist informed the Ukrainian natural gas distribution company Ukrtranzgaz by telephone that the taps would be turned down 25 per cent as of 0930 GMT. Gazprom in an afternoon telegramme to Ukraine's government said it was reducing flow another 10 per cent, making the overall volume fall 35 per cent, the Interfax news agency reported. The delivery reduction to Ukraine potentially could pare down gas supplies to European consumers, as Ukraine in previous conflicts with Gazprom has siphoned off gas destined to Europe for its own needs. "We are doing this for the protection of our interests," said Gazprom spokesman Sergei Kuprianov at a press conference in Moscow. The Kremlin-controlled energy conglomerate has argued Ukraine owes as much as 1.5 billion dollars. Ukrainian officials said the reduction would have no effect on Ukrainians consumers, as gas reserves in country would make up the shortfall. "Even if (Gazprom makes a full 30 per cent reduction) our consumers will not feel it," said Valentin Zemliansky, spokesman for the Ukrainian gas company Naftohazy Ukrainy. "We as planned will make up the difference from our own reserves." Gas volumes at two transit points designated by Gazprom for reduced flow registered reduced flow not at the moment of the Gazprom announcment, but by late afternoon, Zemliansky said. Some 80 per cent of Gazprom gas travels to the European Union via Ukrainian pipelines, providing Europe some 25 per cent of its gas needs. Gas supplies for Europe were continuing "in full volume," Kuprianov said.
