The Market Update
EU to Hear Ukraine's Side to Gas Dispute
The Associated Press
01/05/09 - 05:38 AM EST
KIEV, Ukraine -- European Union officials are due in Kiev to discuss the natural gas cutoff by Russia that has led to supply disruptions in Europe.
Presidential energy adviser Bohdan Sokolovsky says the delegation is coming Monday to hear Ukraine's point of view on the dispute.
Russia's state-controlled gas giant Gazprom cut supplies to Ukraine on Jan. 1 over pricing disagreements and an outstanding debt.
Ukraine has continued shipping Russian gas to Europe through its pipelines, but some countries have reported a drop in supplies. Ukraine and Russia blame each other for the shortfalls.
Ukraine has enough supplies to last for weeks. But it says that a continuing cutoff will lead to major delivery disruptions in Europe in less than two weeks.
The price of a barrel of oil rose 44 cents on Monday to $46.78 as a ground offensive by Israeli troops against Hamas militants in Gaza heightened tensions in the oil-rich Middle East, and as traders grew concerned about the spat between Russia and Ukraine.