How Gazprom turned up the heat on the West

In January 2006, just a month after Ukraine's Orange Revolution, which ousted the pro-Russian leadership in favour of pro-Western reformers under President Viktor Yushchenko, the former Soviet republic suddenly found its gas supply had been switched off by Moscow, which raised prices fourfold overnight.

The cruel midwinter move sent European governments into a tailspin as they realised the inherent vulnerability stemming from their own dependence on Russian gas. The Kremlin promised that Gazprom would honour its contracts elsewhere, and that the shutdown to Ukraine would not have a knock-on effect in Western Europe. France, Italy, Poland, Austria, Hungary, Slovakia and Romania all suffered a dip in gas supplies as a result of Ukraine's disconnection, yet curiously Germany, which depends on Russia for 40 per cent of its natural gas supplies, was not affected. The former German Chancellor, Gerhard Schröder, is chairman of a Gazprom German-Russian pipeline that will carry gas to Europe via the Baltic.

Later that same month, another pro-Western former Soviet republic, Georgia, was the victim of unexplained sabotage to the gas pipeline, which left supplies cut off. The prime suspect was Russia, but Moscow simply accused Georgia of "hysteria" for suggesting that the Kremlin might be using gas as a political weapon. [More]

Gazprom unlikely to change gas price for Georgia

The price of gas for Georgia is projected to remain at $235 per thousand cubic meters in 2008, spokesman for Gazprom Sergei Kupriyanov told Echo of Moscow today. He pointed out that Georgia was already paying this amount for gas supplies from Russia. [More]