Gas wars erupt again

2009 starts with a sense of deja vu as Russia and Ukraine once again battle over gas supplies.

Russia's gas giant Gazprom has this morning turned off the gas taps to the country over unpaid bills as it did back in 2006.

It is difficult to pin the blame on the Russians this time as Gazprom has gone out of its way to resolve the issue and has been open about it.

It appears that the Ukrainians simply don't accept the new price that they have to pay for gas.

Western Europe will be watching with baited breath whilst this latest dispute runs its course with the threat of supplies being disrupted.

So now doubt we will be hit by more price increases in the coming months.