New Year celebrations were colder than usual in Ukraine. On Jan. 1, Russia cut off supplies of natural gas over a contract dispute. Frantic negotiations produced a new contract, but the terms outraged Ukraine's Parliament. Ukraine President Viktor Yushchenko was not the only casualty in the affair, however. The gas cutoff also alerted other customers to the dangers of over-reliance on Russian energy suppliers.
Although no government officials will say so aloud, Moscow's credibility has also been badly damaged.
The dispute between Russia -- more accurately, Gazprom, the state gas company -- and Ukraine was already brewing. Under an agreement signed in 2004, Ukraine received gas at prices considerably lower than those paid by wealthier European nations. Adding insult to injury, Ukraine is accused of stealing gas that passes through the country (in pipelines) on its way to other European countries, a charge Ukraine denies.
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