Russia and Ukraine continue their war on gas, all while Europe suffers without heat in extreme winter weather.

Hello I’m Charlotte Bellis and you’re watching Newsy.com.

After a contract dispute pushed Russia to stop gas flow to Ukraine a week ago, Ukraine has had no gas to deliver to Europe, leaving the continent shivering through severe winter weather.

Russia, Ukraine and the E.U. signed a deal Monday to get gas flowing again, but the regions problems are not yet resolved. Europe says it’s still not seeing any gas.

We’re following coverage of this developing story from FOX News, Ukrainian News, Reuters, CNN, CNBC and France 24.

The dispute is fuelled by allegations that Ukraine is siphoning off Russia’s gas meant for Europe. FOX News has a correspondent in Moscow who explains how Russia will keep a close watch on Ukraine.

“Russia has accused Ukraine of siphoning off gas, of stealing gas in the past. The reason why they’re agreeing to turn it back on again now is that there are international observers in place now in that transit pipeline that goes across Ukraine, that will now watch to make sure that none of that gas is siphoned off. Ukraine of course denying that they ever did that.” (FOX)

Even though monitors are now in place, confirming Ukraine’s taps are on and ready to go, Ukrainian News reports Russia is currently unable to deliver transit gas into Ukraine’s gas transport system.

“Putin informed [European Commission’s President Jose Manuel] Barroso that Russian transit gas, supply of which was temporarily resumed, was not entering Ukraine’s gas transport system. “It is closed,” Putin said.” (Ukrainian News)

Reuters confirmed gas is not flowing and that Russia is declaring force majeure on its European exports. The news agency has Russia’s perspective on the continuing gas debacle, saying it’s all America’s fault.

“We believed yesterday that the door for Russian gas was open but again it’s been blocked by the Ukrainians,” Gazprom Deputy CEO, Alexander Medvedev (Mehd-Yehd-Yehf), said. “It looks like… they are dancing to the music which is being orchestrated not in Kiev but outside the country.” (REUTERS USA)

Reuters confirmed Medvedev was referring to an agreement signed between the U.S. and Ukraine.

CNN backs up the call that it’s Ukraine’s fault.

“[Gazprom] said pressure measurements showed Ukraine’s entry taps are shut… Ukraine’s start-run gas company Naftogaz, confirmed that it had stopped Russian gas flowing into Ukraine. It appeared to blame a procedural fault between the two companies.” (CNN Europe)

CNBC suggests that Russia and Ukraine’s dysfunctional relationship is not about to improve any time soon.

“We should be seeing gas flow return to normal, we hope, within the next two or three days. But whether that’s resolved the long-term situation that we’re going to have to wait and watch. We could be back here next winter.” (CNBC)

France 24 looks into just how serious this dispute has been for Europe and Russia.

“Russia shutting its gas supply has hit many European countries at a time when the continent suffered a severe cold. It also delivered a blow to Russia’s own economy. Analysts say Gazprom is losing more than $100 million dollars a day since it turned off the gas taps.” (FRANCE 24)

How do you think is at fault for the gas shortage? Do you think Russia and Ukraine can repair their tension-filled relationship to get reliable gas flow back to Europe?

We invite you to give us your thoughts on this story at Newsy.com and be sure to check out our sources.

I’m Charlotte Bellis… 

World News

Russia vs. Ukraine - Europe Out Cold

January 13, 2009
Russia and Ukraine continue their war on gas, all while Europe suffers without heat in extreme winter weather.
   
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