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European gas woes (4:00) | PRI's The World
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European gas woes (4:00)


January 8, 2009
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The World's Gerry Hadden reports on the continuing natural gas crisis in Europe. Several nations are facing heating problems because Russia's natural gas supplies to the continent have been shut down over a dispute with Ukraine.


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This text below is a phonetic transcript of a radio story broadcast by PRI's THE WORLD. It has been created on deadline by a contractor for PRI. The transcript is included here to facilitate internet searches for audio content. Please report any transcribing errors to theworld@pri.org. This transcript may not be in its final form, and it may be updated. Please be aware that the authoritative record of material distributed by PRI's THE WORLD is the program audio.


LISA MULLINS: I'm Lisa Mullins and this is The World. Ukraine and Russia are locked in a battle. The two countries are feuding over how much Ukraine should pay for Russia's natural gas. This dispute has closed off the pipelines that transport Russia's gas westward and westward is Europe. So this is a big problem for Europe. The continent depends on Russia for 25 percent of its gas. Well, today European officials struggled to broker a deal, but for now Europe remains in the cold. The World's Gerry Hadden has this update.

GERRY HADDEN: It was an acrimonious day in Brussels as Russian and Ukrainian officials met separately with European Union leaders then with each other. Each side blamed the other for Europe's loss of Russian gas. The head of the Ukraine delegation, Grigory Nemyria, called on Russia to resume shipments to Europe.

GRIGORY NEMYRIA: I'm afraid that Gazprom erratic behavior against EU consumers and Ukraine is destroying demand in the only export market for Russian gas; in effect killing the goose that lays the golden egg.

HADDEN: Most Russian gas destined for Europe must first pass through Ukraine. In Brussels early today Russia's ambassador to the EU, Vladimir Chizhov, said Russia could only resume shipments to Europe if Ukraine meets strict conditions.

VLADIMIR CHIZHOV: The condition number one is stop stealing gas which does not belong to you, that is gas which has been bought by European countries and those countries are expected to receive it.

HADDEN: Ukraine denies it has been siphoning off gas paid for by its European neighbors. The deadlock is causing great concern for Eastern countries such as Bulgaria. Bulgaria depends on Russia for more than 80 percent of its gas. Two Bulgarian towns now have no gas at all. In the Capital, Sofia, residents like Deanna Hristrova say even they can't hold out for long. She says, "As you can see we are already suffering from the gas crisis. It's hard; it's very cold outside and inside too. The central heating has almost stopped," she says. "And we're trying to keep warm by electric heater, but it's not the same."
Bulgaria's President Georgi Parvanov is apparently so alarmed that he is suggesting something controversial, flipping the switch on an old nuclear reactor from the Soviet era. He said, "We should immediately start preparing to restart the third unit of the Kozloduy Nuclear Power Plant. Since we're in a crisis situation we have a right to do so. I hope that our European partners will understand," he said, "and will not oppose our demands." Parvanov is anticipating objections from the EU because the nuclear plant in question was considered one of the most dangerous in the world. Bulgaria was forced to close it as a condition of joining the EU in 2004. Santiago San Antonio heads a European nuclear lobby group. He says there was good reason the EU called for the plant's closure.

SANTIAGO SAN ANTONIA: In the former Soviet Union, the objective was the number of items that you could manufacture. They didn't know anything about quality assurance or quality controls. That is why sometimes they had problems, not only with the nuclear power plants, with the old nuclear power plants, but also with the cars and the planes and some other equipment.

HADDEN: Ramping up old, outdated nuclear reactors is not the answer European leaders seek, not even in the short term. Instead they proposed sending observers to monitor key transit pipelines leading into and out of Ukraine. Ukraine and Russia seem to agree on that point. Alexei Miller is Chief Executive of Russia's state-controlled gas company Gazprom. He says, "Our agreement with our European partners is that as soon as international monitors appear at Ukraine's gas installations and confirm that they are beginning the mechanism of monitoring and control, Ukraine must resume the transit. And I am certain that the effective result of such a mechanism will produce 100 percent delivery of Russian gas for European customers." The Europeans say they can send observers as early as tomorrow, but even if the gas does begin to flow westward again the fundamental dispute over gas prices between Russia and Ukraine remains. And so perhaps, does the damage to the two countries reputations as reliable energy partners. For The World, I'm Gerry Hadden.

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