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   Europe, US uneasy after Russia cuts Ukraine gas supply

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1/1/2006 7:45 pm

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Yahoo News

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News

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Entered 1/2/2006, Updated 1/2/2006

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MOSCOW (Reuters) - The United States said Russia's halting of gas supplies to Ukraine raised questions about use of energy as a political weapon, and European countries voiced concern their supplies could be hit at the height of winter. Russia, taking over the G8 chairmanship for the first time this month aiming to promote itself as a reliable energy source, cut its neighbor's gas supplies on Sunday. Moscow said it had no choice but to act after Kiev refused to sign a new contract that would have jacked up prices fourfold, ending the preferential treatment of Soviet days. The Kremlin describes the dispute as a purely commercial matter. But Kiev sees an attempt to undermine its pro-Western government and says cutting Ukrainian supplies will undermine deliveries passing through the same pipeline complex to Europe.


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