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 has disputed the price it pays for gas from Russia’s Gazprom , provoking 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 more than two-thirds of its gas exports to the continent. Completion of a second, parallel pipeline will double capacity by 2013.