Russian Energy Company Threatens to Pull the Plug During Europe’s Worst Winter.

With Record Low Temperatures in Europe Russian company OAO Gazprom is “toying with” the continent’s gas supplies.

Russia continues to influence energy policy in Europe, highlighted over the past week by disputed negotiations with Ukraine over piping of gas. Europeans are suffering their worst winter in recent history, and the European Union was forced to negotiate simply to get the gas moving again. Russia continues to be able to control gas resources in Europe, making a more balanced delivery strategy critical. The “cold war” with the Soviet Union is long over, but the “gas wars” continue. Energy security has replaced military supremacy in Euro-Russian disputes.

In a repeat of the devastating three day halt of gas supplies in 2006, Gazprom completely halted gas flows this year on January 7 after accusing Ukraine of diverting gas. Ukraine rejects the charge. Just over 80 percent of Gazprom’s customers in Europe receive their gas through Ukrainian pipelines. Gazprom also provides 25% of all Europe’s gas. With the taps turned off, some countries in Europe have had to use quotas.

With gas prices dropping, analysts are quick to point out that the Russian company is attempting to drive up prices by lowering supply. Russia is heavily oil and gas dependent, especially since recent drops in the stock market.