Putin warns of gas shutdown to Europe if Ukraine fails to pay

Putin warns of gas shutdown to Europe if Ukraine fails to pay

en.rian.ru

Russia's prime minister warned on Wednesday that natural gas pumped via Ukraine to Europe could be cut off by early July if Ukraine fails to pay for its gas, and urged the EU to intervene.

"During discussions with our European partners, I have called attention to this problem, and asked them not to leave us [Ukraine and Russia] to handle these issues one-on-one. We are warning in advance that if such a conflict arises, it could lead to a full shutdown in our transit in late June..."

(visit the link for the full news article)


Related News Links:
www.itar-tass.com

Here we go again. Not even half a year has passed since the last gas show down between Russia and Ukraine, and it looks like it is imminent again. This is not about Russia pressuring Ukraine politically, but rather Russia expecting to be paid for its gas exports to Ukraine. Ukraine is again behind in payment and owes billions of dollars to Russia, and Russia does not want to subsidise Ukraine.

The problem this time around is not that Ukrainian politicians don't want to pay the Russian gas exporter Gazprom, but that they simply can't. Thats right - Ukraine is virtually bankrupt right now as a nation, however it still requires large gas imports to keep its industries afloat. Ukrainian politicians are not helping matters either, as the country has a lot of corruption and many politicians are skimming money off the top of the gas import and transport business.

So what Russia seems to be doing now is appealing to Europe to assist Ukraine in making their payments on time. Lets see how EU really supports Ukraine and their "democratic" leader.

Russian experts are now saying that the shutdown of gas to Ukraine is almost imminent, and as such Europe may again see decrease in supply as Ukraine "steals" their share. At least it is not as bad as shut down of gas in the winter when it is needed for heating, but this could turn into another ugly political battle.

en.rian.ru
(visit the link for the full news article)

[edit on 3-6-2009 by maloy]

More and more lately, we are seeing Russia flaunt it's strength on the world stage. Their brand of communism is disturbing, to say the least. The glaring divide between the rich and poor classes would put a bad taste in anyone's mouth.

Perhaps a vision of the future of the US should it citizenry, not awake in time.

Originally posted by warrenb
More and more lately, we are seeing Russia flaunt it's strength on the world stage.

Sorry, but you appear to have little idea of what is happening in this gas dispute. This has nother to do about Russia's strength or pressuring Ukraine.

This is Capitalism 101 - if you want to buy and use something from someone then PAY FOR IT. Ukraine is importing and using Russia's gas, and refuses to pay the bill. Russia is demanding the same payments from their poltical allies - Armenia and Belarus - and those countries pay on time and have agreed to have their prices increased as well. If this was about political pressure how would you explain such equal treatment?

Originally posted by warrenb
Their brand of communism is disturbing, to say the least.

Communism? What are you talking about?

These developing news are more about international economy than anything. The main issue is whether the European community is able and willing to come to Ukraine's aid during an economic crisis. Ukraine desperately needs a loan to pay for gas and other budgetary expenses, but as of now no one is willing to provide that loan to them.

This is an almost unprecedented occurance when other relatively wealthy nations can't afford to give a loan to their neighbor and are watching as Ukraine's economy goes down in flames. The issue is that something is at stake for them to here, and if no one helps Ukraine, then we could witness a new failed state. This time it is more than a mere pricing dispute. I Can't believe that Ukraine has difficulty obtaining a loan from even the IMF. The country may have nothing left to do if those loan negotiations fail.

Putin Urges Europe to Help Ukraine Avoid New Gas Halt

OAO Gazprom, the Russian provider of a quarter of Europe’s gas, has the right to demand prepayment for gas from Ukraine should the eastern Europe nation fail to meet a June 7 deadline to pay for May supplies, Putin said. Ukraine also needs to pay for gas to be pumped into storage for the winter, said Putin, who said that would cost $5 billion through October.

“Without pumping into underground storage, Ukraine cannot survive and it will be forced to take gas from export pipelines and you cannot even blame them for that,” Putin said. “I highlighted this problem in talks with our European partners and asked that we shouldn’t be left alone with these issues. We warned in advance that such a conflict could emerge.”

...

Russian President Dmitry Medvedev proposed on May 22 that his country and Europe work together to arrange a loan for Ukraine, which has sought to borrow $16.4 billion from the International Monetary Fund.

www.bloomberg.com...

Originally posted by warrenb
. Their brand of capitalism is disturbing, to say the least. The glaring divide between the rich and poor classes would put a bad taste in anyone's mouth.

Too late, it applies to us as well.

Gaddafi is apparently going to build some refineries in Ukraine. Maybe he'll provide some cash for their gas bill?


May 26 2009

picture source



Ukraine, Libya move on energy deals

Originally posted by Hellmutt
Gaddafi is apparently going to build some refineries in Ukraine. Maybe he'll provide some cash for their gas bill?

Interesting update about the Odessa-Brody pipeline, but the fact of the matter is that that pipeline relies on sufficient shipments of oil from the Caucasus and Caspian Sea in order to be profitable. Ukraine doesn't really have much oil resources of its own. Azerbaijan's shipments and Russian pipeline links are crucial, and without them this deal would mean nothing.

Perhaps Ukraine plans to make itself a major energy transport hub, but that is still years away from being realized as far as petroleum shipments go. In addition to this Russia plans to shift gas transport to Europe from Ukraine to the Nord Stream pipeline. Ukraine would probably be worse off then it is now when that happens.


Also, Ukraine needs $14 billion in order to pay the bills and make necessary prepayments to fill its storage capacity and avoid future shortages. Is Gaddafi going to be able or willing to provide that much to a state whose economy's has virtually failed. There is no guarantee that Ukraine will pay it back.

Ukraine was found guilty for diverting gas which was destined for central Europe, that is why Russia was then demanding for payments since Ukraine pays far less for its gas than any central European nation. This is why the European Commission had sent a body to over see Gazprom and Ukraine.

As always, that euro body was only allowed limited access to Gazprom due to its national importance and was only allowed to view the amount of gas leaving the valves from Gazprom through Ukraine and leading to the distribution points within central Europe, which they found that there was a loss of quantity some were along the transfer lines.

If i was sending 1$ from A to C through B and C ended up receiving .70 cents, well its very obvious what B was doing.

[edit on 3-6-2009 by tristar]

If you dont pay, you dont receive.
Whats so unfair about that to accuse Russia of pushing around its weight?

If governments and corporations have knowingly made wrong choices, resulting in the bankrupting of their countries and abilities... then it is them and them alone who should foot the blame when they cant afford to pay for Gas, Heating, Electricity etc etc.

Europes not doing to well either, so its going to be interesting to see what happens.

because if we bail out Ukraine now, it will occur again in 6 months when they are overdue 'again'

Originally posted by warrenb
More and more lately, we are seeing Russia flaunt it's strength on the world stage.

What country on Earth would allow a precious resource to be stolen? If you were the head of a country - any country - would you allow another country - much less a political rival - to siphon off your gas exports without paying for the service you are providing?

Originally posted by warrenb
Their brand of communism is disturbing, to say the least.

Demanding compensation for services rendered is capitalism.

Originally posted by warrenb
The glaring divide between the rich and poor classes would put a bad taste in anyone's mouth.

Right, because there aren't glaring divides between the rich and poor classes in Western nations, right? The homeless and unemployed are doing just as well as the executives of corporations who have stolen bailout money and taken trips on private jets to private topical islands, right?

Originally posted by warrenb
Perhaps a vision of the future of the US should it citizenry, not awake in time.

The future? We're already there. Socialism has arrived in the United States.

It appears that Russia is currently altering, or perhaps refining, its energy export policies. For its gas exports it is shifting over to requiring advance payments as well as trying to diversify its transport routes (pipelines). There are now talk in Russia that the Nabucco pipeline project, which is meant to lessen Europe's dependence on Russian oil/gas, is unlikely to happen due to no financial backers. So with Nord Stream pipeline under construction (alternative route so Ukraine won't block export to Europe anymore), it appears that Russia will remain as the primary gas supplier to Europe.


As far as oil goes, Russia is now preparing for increasing petroleum prices in the coming year, which will create windfall profits for Russian oil companies and Federal budget. In the short run Russia will slightly lower oil production so that decreased supply pushes the prices upward. Coupled with the world economy getting back on track this could result in rapid price increase for petroleum in a year or so. After prices rise, Russia likely plans to increase oil production and export again over the next few years, making it an even more important energy superpower.


Here is an interesting bit of news on Russia's relations with OPEC:

Russia not to join OPEC any time soon - LUKoil CEO

Russia will not join the Organization of Petroleum Exporting Countries any time soon, the CEO of Russia's leading independent oil producer said Thursday.

"Russia will not be a [OPEC] member in the near future," LUKoil head Vagit Alekperov said on the sidelines of the International Economic Forum in Russia's second city St. Petersburg.

Russia, the largest non-OPEC oil producer, and the 12-nation cartel have differed recently over measures to steady prices during the current economic recession. Russia has benefited from OPEC members' cuts in oil exports, but has not joined the group in reducing output.

"Prices are growing thanks to OPEC efforts, we are happy," Alekperov said.

OPEC has announced three rounds of production cuts since September. Oil plunged from a record $115 per barrel last July to below $40. Prices have strengthened this year, rising to above $68 a barrel on Thursday to fuel expectations that crude will continue its rally.

Russia has been invited to join the cartel, which accounts for 40% of the world's output, but Moscow says it first wants to have a permanent envoy to the organization and to sign a cooperation memorandum with OPEC. In January, however, President Dmitry Medvedev refused to rule out that Russia could join the organization.

en.rian.ru...


What this has to do with original topic of this thread, is that both gas and oil together play a crucial role in Russia's energy policies and future geopolitics of the region. The alteration of Russian energy policy is happening because of the economic crisis, and will in turn influence political events in the region in the coming years.

Here is another article on the political fallout of the economic and gas troubles in Ukraine, and what it means for the current president Yuschenko:

Yanukovych leads poll as possible Ukraine president

A recent public opinion poll gave the head of Ukraine's main opposition party, Viktor Yanukovych, a 10% lead over rivals in presidential elections scheduled for next January, the Unian agency said on Tuesday.

The survey conducted by the independent pollster Public Opinion (Ukraine) Foundation said the former prime minister and Party of Regions leader Yanukovich enjoyed the support of 26.6% of respondents.

Current premier Yulia Tymoshenko and ex-parliamentary speaker Arseniy Yatsenyuk remain his closest rivals with 16.2% and 12.8%, respectively, according to the survey.

President Viktor Yushchenko, who has also announced plans to run for a second term, polled a miniscule 1.9%.

Tymoshenko's ratings have fallen due to her protracted dispute with Yushchenko as many believe it has contributed to the country's current political and economic instability.

Then close allies, Yushchenko and Tymoshenko defeated Yanukovych in the 2004 "Orange Revolution" that followed a contested presidential poll.

Millionaire businessman Yatsenyuk, 34, who also served as economics minister and foreign minister, has enjoyed increasingly growing popularity ratings in recent months.

Direct presidential elections, however, could be cancelled in the ex-Soviet republic as bitter rivals Yanukovych and Tymoshenko are reported to be in coalition talks in an attempt to try and overcome the current political and economic turmoil, with a president being elected through a parliamentary vote.

I do find those numbers for the current president Yuschenko rather amusing: 1.9%. Shows just how pathetic and unpopular his "democratic" policies are. In fact, since becoming president he seems to have made no positive steps as far as Ukrainian economy and democracy go - and only backtracked on important issues. However it is troubling that he may seek to change the constitution in order to try and remain in power. Timoshenko's role in this mess is troubling as well.

I think that Ukraine will again be on the front pages of European press in the following year. There are a lot of critical developments here that may change the course that the country takes. NATO's involvement doesn't make things any simpler.

reply to post by maloy


Do you have a link to this article, maloy?

reply to post by Hellmutt


en.rian.ru...

[edit on 5-6-2009 by maloy]

Russia deserves payment just like everyone else does. I get sick and tired of people bad mouthing Russia because they are uneducated in world affairs. Those people are listening to MSM only and have not educated themselves. Please dont post that filth here.

Good thread and good catch, star for ya.

The author of free energy research will be publishing in Russia.
Another good reason the Illuminati lie about Russia.

The US has just about had a deluge of misinformation for 60 years
and has kept his book out of the public consciousness.

Oil may be of less concern after Russia joins in the free energy
research without suppression.

Gaddafi might have all the oil he wants.
This sound like the old Occidental Petroleum is still involved
in Libya.
Russia goes free energy and sells oil.

reply to post by TeslaandLyne


Russian federation would be among the last countries pursuing free energy. Its economy is heavily dependent on oil/gas exports. As this article actually shows.
So no way will they cut their own money supply. Of course Russian scientists are just as capable as any other to accomplish such a task, but i think that Russian political establishment is not interested in this, to say the least . Another cup of tea with polonium, anyone ???
As for issue itself, Russian games with twisting opponent's hands for resources are well known, so even if (and i think that it is the case) Russian federation is correct now - its previous handling of purely diplomatic tasks by turning off supplies backfires. At least it is not winter, so this could be solved without freezing people all over Europe.

reply to post by ZeroKnowledge


The free energy is their secret, the US will not reveal it.
Russian can sell all the oil it wants.
And buy up all the Czars gold back from the Rothschilds.
Thats the problem.
Russia rich by not using oil and selling it all.
Thats what the Illuminati want, to buy Russian raw materials.
Russia does not want that and the Illuminati are mad at Russia.
When Russia gets the free energy secrets it will sell more oil.

Well it appears that Ukraine does have the money to pay its bill for May.

Ukraine pays for Russian gas consumed in May - Naftogaz

Ukraine’s oil and gas company Naftogaz Ukrainy has paid in full for the Russian gas imported in May, the company’ s press-secretary Valentin Zemlyansky said on Friday.

“The required sum has been entered to Gazprom accounts,” he said.

Earlier, Naftogaz CEO Oleg Dubina said his company would pay on time for the natural gas it received in May, including the amount pumped into the underground gasholders – 2.376 billion cubic meters 646.8 million dollars worth. President Viktor Yushchenko on Friday said that the Oshchada savings bank had disbursed 500 million dollars to Naftogaz to pay for the May supplies of gas.

Gazprom’s spokesman Sergei Kupriyanov earlier on Friday said that the deadline for Ukraine to pay for May gas supplies was June 9.

www.itar-tass.com...

So Ukraine is not totally broke, at least yet. The main question still remains - how will Ukraine come up with funds to pay for filling up its gas reserves before winter. The main fill-ups should take place through June, and the bill would be billions of dollars. Of course now Russia demands prepayment, and Ukraine states that it doesn't have the funds for it.

What happens if Ukraine's gas reserves aren't topped up over the summer? It will not have enough to sustain its industrial and commercial output over the winter, even with continuing imports from Russia. So if Ukraine can't come up with the payment, another crisis this year is imminent.

[edit on 6-6-2009 by maloy]