Russia/Ukraine

Gazprom files suit against Ukraine on gas battle

Article published on the 2009-01-03 Latest update 2009-01-03 16:54 TU

The arrow of a pressure gauge points to zero at an Ukrainian gas compressor station in the village of Boyarka near the capital Kiev on Thursday.
(Photo: Reuters)

Russian gas supplier Gazprom announced on Saturday that it would be filing a lawsuit against Naftogaz Ukraine in the Stockholm arbitration court to ensure uninterrupted transit of Russian gas to European territory. Several EU states, including Poland and Hungary, have suffered from gas shortages, after Russia turned off supplies to the Ukraine on Thursday in a row over payment.

Gazprom has since accused the Ukraine's Naftogaz of stealing from the pipes. The Ukraine denies illegally siphoning gas that was destined for other countries.

But is siphoning really occuring? "Apparently in these kind of disputes, it is kind of difficult to make a formal judgement, especially with both parties making opposite statements," said Andrei Grachev, a Russian analyst. The lack of impartial observers is an obvious issue, he said.

"But I don't see any interest for Russia to do that," said Grachev, who said that it would be more in the interests of Ukraine to get the "European Union's support and solidarity, especially at the beginning of winter." 

On Friday, Gasprom's  deputy chairman Alexander Medvedev said he could no longer depend on the Ukraine as a transit route to European Union countries, and would look to alternatives.

Medvedev is expected to arrive in Prague Saturday for talks with the EU over the gas dispute between Russia and the Ukraine.