Russia Supplies To South-East Europe Halted

`As of 3.30 a.m. (0130 GMT) supplies ... to Bulgaria as well as the transit to Turkey, Greece and Macedonia have been suspended.`

All supplies of Russian gas via Ukraine to Bulgaria, Turkey, Greece and Macedonia were halted on Tuesday due to a dispute between Moscow and Kiev over gas prices, officials in Sofia said.

Turkish Energy Minister Hilmi Guler confirmed that supplies to his country from a western pipeline passing through Ukraine had been completely cut.

Also affected was Romania where Russian gas supplies were reduced by 75 percent from contracted levels, the state-controlled Transgaz pipeline operator said.

"We are in a crisis situation," Bulgaria's economy ministry said in a statement.

Russia ordered on Monday a reduction in gas flow to Europe via Ukraine, a measure it said was to stop its neighbour from stealing fuel. Ukraine said the move would jeopardise supplies to Europe which is facing freezing temperatures.

The gas row has raised new questions about Russia's reliability as an energy supplier and rekindled Western suspicions -- still fresh after Russia's war with Georgia last year -- that the Kremlin bullies its pro-Western neighbours.

"Russia and Ukraine must find an urgent solution because the energy systems of dozens of countries are at risk," Economy and Energy Minister Petar Dimitrov told national radio.

Sofia said the gas flow to Bulgaria as well as the transit to Turkey, Greece and Macedonia had been suspended as of 3.30 a.m. (0130 GMT).

Turkey's Guler said his country had raised supplies of Russian gas delivered via a pipeline which passes under the Black Sea to 48 million cubic metres per day from 40 million.

A source at Ankara's Iranian embassy said Iran might increase its gas flows to Turkey -- which has started to use liquid natural gas sources and natural gas stores -- to cover the shortfall. Iran supplies about a third of Turkey's gas.

EMERGENCY MEASURES

Bulgaria, which relies almost entirely on Russian gas for its needs, will be worst hit because like Macedonia it has no access to alternative pipeline routes.

The Bulgarian economy ministry told industrial users to switch to alternative fuels such as oil and urged households to start using other means for heating rather than central heating that runs on gas.

Prime Minister Sergei Stanishev called an emergency meeting to discuss the situation.

Bulgaria, where temperatures dropped below minus 15 degrees overnight, started pumping a maximum 4.3 million cubic metres of gas from its sole gas storage facility, the ministry said.

The country currently consumes about 11 million cubic metres of gas a day. Dimitrov said underground reserves were enough to cover needs for a month, depending on consumption.

There was no immediate reaction from Greece, which can access additional supplies from Turkey.

Romania, which receives about a third of its gas from Russia, said it will use more gas from underground storage. It covers 65 percent of its needs with domestic production.