By Dmitry Zhdannikov and Pavel Polityuk
MOSCOW/KIEV (Reuters) - Russian gas supplies to Europe through Ukraine shut down completely on Wednesday, leaving growing numbers of European Union member states without Russian fuel in freezing mid-winter temperatures.
The shutdown, triggered by a price dispute between Moscow and Kiev, halted flows to a dozen countries and disrupted supplies to big economies including Germany, France and Italy.
"Russia, which supplies 80 percent of its gas to Europe through Ukraine, has left Europe without gas. There is zero transit," said Valentin Zemlyansky, a spokesman for Ukrainian state energy firm Naftogaz.
Russian gas export monopoly Gazprom blamed Ukraine for the closure, and said it was raising supplies to the European Union and Turkey via alternative routes.
Despite those measures, the Ukraine shutdown cut Russia's supplies to Europe -- which depends on Russia for a quarter of its gas supplies -- by half.
Some countries have taken emergency measures to eke out dwindling fuel reserves by switching to other energy sources.
In Bulgaria, thousands of households spent a freezing night without central heating because utilities need time to switch to alternative fuels, municipal officials said. Schools were shut and some companies were closed on Wednesday.
Czech importer RWE Transgas said the main transit pipeline from Russia to the Czech Republic and western Europe was halted from midnight.
Austria, Slovakia, Poland and Romania also said their supplies were halted, joining Hungary, Bulgaria, Turkey, Macedonia, Greece and Croatia who announced on Tuesday that supplies of Russian gas via Ukraine had shut down.
Europe's heavy dependence on Russian energy -- and its vulnerability to supply disruption -- was highlighted when Moscow reduced volumes to Ukraine on January 1 after failing to reach agreement with Kiev over debts and gas prices.
STOCKPILES FALL
The Czech Republic, which holds the EU presidency, said on Tuesday the Union was considering holding a summit with Russia and Ukraine but would prefer to stay on the sidelines.
With gas stockpiles in Europe falling with each day the disruption continues, and sub-zero temperatures driving up demand, there is no sign Moscow and Kiev are closer to resolving their row over pricing and transit fees.
Ukraine's Naftogaz chief Oleh Dubyna said he would go to Moscow on Thursday to hold talks with Gazprom CEO Alexei Miller, but both sides continued to trade blame.
"I consider it necessary... to immediately resume the uninterrupted transit of Russian gas to European consumers in the volumes that were being transported before December 31," Ukraine's pro-Western President Viktor Yushchenko wrote in a letter to Russian President Dmitry Medvedev late on Tuesday.
In a separate letter to European Commission chief Jose Manuel Barroso, Yushchenko asked the EU to use all efforts to start talks to end the crisis, which has further dented investor confidence in his country.
The EU has turned down requests to mediate, saying it is a commercial dispute to be solved by Kiev and Moscow, but sent a mission to meet Ukrainian officials on Monday. Pressure on the Union to act is likely to increase if the dispute continues.
The EU has a limited ability to act and it has failed to reduce its use of Russian energy because of internal divisions and the lack of alternatives. Some member states have bilateral energy deals with Russia, undermining hopes of a united front.
The cost of protecting Ukrainian debt against restructuring or default rose to 54.75 percent on an upfront basis, meaning an investor buying protection for $10 million (6.7 million pounds) of Ukrainian debt must pay $5.475 million plus $500,000 a year for five years.
CENTRAL, EASTERN EUROPE BEAR THE BRUNT
So far eastern and central Europe have borne the brunt of the row, with Bulgaria cutting or suspending supplies to industrial users. Two fertiliser companies halted production.
Budapest airport said on Wednesday it would switch to oil from gas heating.
The euro zone's major economies have so far escaped any significant economic repercussions, but France has reported a drop in supplies and an Italian industry ministry spokesman said Italy has begun tapping its stockpiles of natural gas.
German energy provider E.ON Ruhrgas said drastic cuts and a prolonged cold spell could cause shortages. High energy users like aluminium, glass and metals makers could be hurt by a lengthy crisis.
The shutting down of gas supplies via Ukraine has supported gas prices in Britain, although they eased slightly on Wednesday after forecasts of milder weather.
Benchmark U.S. crude futures were slightly weaker at around $48 a barrel, but winter heating fuel was trading higher as the shortage of gas in many European countries led to fuel switching.
(Additional reporting by Christian Lowe; Writing by Dominic Evans; Editing by Timothy Heritage)
