UPI: Putin again employs natural gas as diplomatic weapon

Russia has returned to threats of curtailment of natural gas shipments to Ukraine, and European gas prices rose on the prospect this week.

The Russian natural gas company Gazprom cited increased risks associated with shipping its product to Europe, and Tuesday suggested it would stop shipments to Ukraine over a long-running dispute over payments. Gazprom chief Alexei Miller warned as disruption of gas supply to Ukraine could have consequences for the rest of Europe. Tuesday Naftogaz, Ukraine's gas company, said only 47 million cubic meters of gas were delivered in February; 114 million cubic meters were expected.

Gazprom claimed Natfogaz had not prepaid for direct shipments of gas to rebel-held areas in eastern Ukraine, where the Ukrainian army is battling pro-Russian separatists. On London's commodity markets, futures prices for natural gas jumped as much as 3.8 percent as a result.

Despite the aspects of a contract dispute, last week Gazprom began delivering gas to the rebel-held areas after gas lines were damaged in the military conflict, charging the Kiev government a "humanitarian" fee for deliveries. The move suggests Russian natural gas is part of a larger geopolitical strategy, more than a mere disagreement with a customer.

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