Russia has pumped the first gas into a new pipeline running under the Baltic Sea to Germany, which will tighten Moscow’s grip on the continent’s lucrative gas markets. The opening of the $10bn Nord Stream pipeline gives Russia its first direct export link to western markets, bypassing Ukraine and other central European countries. Ukraine is locked in the latest of a series of gas-price disputes with Russia’s Gazprom, raising concerns over possible supply disruptions to western Europe similar to those experienced in 2006 and 2009. Nord Stream will initially supply up to 27.5bn cubic metres of gas to Germany, France, the UK, the Netherlands and Denmark, allowing Russia to reduce dependence on Ukrainian pipelines that carry two-thirds of its gas exports to the continent. Completion of a second pipeline will double capacity by 2013. The Nord Stream project was opposed by Ukraine and Poland, which will lose some of the revenues they previously earned for piping gas across their territory. In a controversial move shortly after he left office, former German chancellor Gerhard Schröder became chairman of the Gazprom-led consortium that built the pipeline. Vladimir Putin, Russian prime minister, on Tuesday opened the tap to Nord Stream at a compressor station near Vyborg, north-west Russia. He thanked Mr Schröder for his support – and warned Ukraine that Russia had the upper hand in negotiations. “Like any transit country, [Ukraine] has the temptation to benefit from its position,” Mr Putin said. “Now this exclusive right disappears. Our relations will become more civilised.” Nord stream pipeline map Russia must first pump “technical” gas into the pipeline, raising the pressure to the point where commercial deliveries can begin. The first gas is expected to reach Greifswald on the German Baltic in early November. The project’s technical launch coincides with another Ukrainian price dispute. Kiev wants to lower prices agreed after a bitter dispute with Gazprom in 2009, and also reduce the volume of gas it buys from Russia. Gazprom has refused to compromise unless Naftogaz, Ukraine’s state gas company, agrees to a merger. Russia has tried to use the gas issue to persuade Ukraine to join a customs union and common market.