Russia today withheld natural gas supplies to Ukraine for a second day with no sign of the row being settled.
Oil prices were retreating in Asia following pledges by Russia and Ukraine to keep supplies flowing to the rest of Europe. No interruptions outside Ukraine were reported.
In 2006, customers as far away as Italy and France were affected by a similar cut-off. Russia supplies the European Union with a quarter of its gas.
Russia suspended gas shipments yesterday after Ukraine failed to pay 600 million dollars (€430 million) in penalties for late payment of its gas bill.
The two countries are also negotiating over gas prices for 2009, as well as transit fees due to Ukraine. Ukraine’s pipelines carry 80 per cent of the gas Russia sells to European Union.
AP
