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Ukraine is halting natural gas imports from Russia over price “aggression” before the world’s biggest exporter of the fuel cuts supplies, raising the risk of disrupted flows to Europe.
Ukraine will stop buying gas this month until a price agreement is reached, Energy Minister Yuri Prodan said in Kiev today. Russian President Vladimir Putin is scheduled to meet advisers and cabinet members to discuss energy cooperation with the neighboring country, which owes more than $2.2 billion for gas supplies through March.
About 15 percent of Europe’s supplies flow through Ukraine’s pipelines from Russia, making the country a linchpin in the continent’s energy security. Ukraine, which buys half its gas from Moscow-based OAO Gazprom, is seeking alternative supplies, including imports from Europe. Putin has used gas as a tool to pressure the government in Kiev to abandon attempts to reorient the economy toward the European Union.
“Europe can relax until September,” Alexander Paraschiy, an analyst at Concorde Capital in Kiev, said by phone. “If Poland and Hungary begin gas deliveries to Ukraine soon, like last year, Ukraine can survive without Russian gas and transit to Europe won’t suffer.”
Xcathdra
Ukraine Rejects Russian Gas Imports Before Putin Energy Meeting
Ukraine is halting natural gas imports from Russia over price “aggression” before the world’s biggest exporter of the fuel cuts supplies, raising the risk of disrupted flows to Europe.
Ukraine will stop buying gas this month until a price agreement is reached, Energy Minister Yuri Prodan said in Kiev today. Russian President Vladimir Putin is scheduled to meet advisers and cabinet members to discuss energy cooperation with the neighboring country, which owes more than $2.2 billion for gas supplies through March.
About 15 percent of Europe’s supplies flow through Ukraine’s pipelines from Russia, making the country a linchpin in the continent’s energy security. Ukraine, which buys half its gas from Moscow-based OAO Gazprom, is seeking alternative supplies, including imports from Europe. Putin has used gas as a tool to pressure the government in Kiev to abandon attempts to reorient the economy toward the European Union.
“Europe can relax until September,” Alexander Paraschiy, an analyst at Concorde Capital in Kiev, said by phone. “If Poland and Hungary begin gas deliveries to Ukraine soon, like last year, Ukraine can survive without Russian gas and transit to Europe won’t suffer.”
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An interesting turn of events...
Since the Russian energy sector accounts for 25% of Russia's revenues I am curious about the impact this is going to have on those figures. The EU supports Ukraine's decision to end the shipments from Russia with Slovakia and Ukraine in talks to work out the technicalities for a reverse pipeline.
The energy sector has been discussed in a few threads with each side of the coin giving their opinion. Now that we have something more definitive a few questions -
Thoughts / speculation on what Russia's response might be on canceling the agreement?
Thoughts / speculation on Russia's response, if any, towards Slovakia?
With Russia ending the cheap natural gas discounts for Ukraine and sending the price of NG thru the roof do you think Ukraine is within its right to end the agreement?
Do you think Russia was within its rights to set the huge increase in price?
Do you think Russia acted appropriately by using NG as an economic weapon (Russia says they want this, EU or Ukraine tells them no, so Russia interrupts the supply heading to Ukraine/Europe)?
Xcathdra
Slovakia and Ukraine in talks to work out the technicalities for a reverse pipeline.
The energy sector has been discussed in a few threads with each side of the coin giving their opinion. Now that we have something more definitive a few questions -
Thoughts / speculation on Russia's response, if any, towards Slovakia?
With Russia ending the cheap natural gas discounts for Ukraine and sending the price of NG thru the roof do you think Ukraine is within its right to end the agreement?
Do you think Russia was within its rights to set the huge increase in price?
Do you think Russia acted appropriately by using NG as an economic weapon (Russia says they want this, EU or Ukraine tells them no, so Russia interrupts the supply heading to Ukraine/Europe)?
cosmicexplorer
I thought I just read an article that stated their price was the same as everyone else got (although it was higher than before)...ill try to find it.
Russia canceled discounts it had offered to Kiev, raising the price to $485 per 1,000 cubic meters in two steps this month from $268.50 in the first quarter. Gazprom has said Ukraine may be moved to advance payments over its debt and will have to pay for deliveries to avoid a supply cut.
HanzHenry
the Slovakia pipeline may be the victim of 'natural disaster', a plane may 'accidentally' crash into it, ...
HanzHenry
Ukraine is within their right IF the agreement isn't in breach by either side.
HanzHenry
Russia played kinda dirty (US style) in gouging.
HanzHenry
what isn't a weapon these days?
strawburry
Hope they remember to pay their almost 2 BILLION dollar BILL for USED gas.
strawburry
Good thing Russia has a Northern Pipeline and Southern Pipeling comming online next year.
I think Ukraine just cut off their nose despite their face, cut off the hand that fed them.
I honestly don't think Russia care about Ukraine and Gas supplies to them anymore, this is obvious by the North and South pipelines in the works for years.
Xcathdra
strawburry
Hope they remember to pay their almost 2 BILLION dollar BILL for USED gas.
Any chance Ukraine can submit a bill to Russian for all of the military assets Russia took when they invaded Ukraine?
strawburry
Good thing Russia has a Northern Pipeline and Southern Pipeling comming online next year.
I think Ukraine just cut off their nose despite their face, cut off the hand that fed them.
I honestly don't think Russia care about Ukraine and Gas supplies to them anymore, this is obvious by the North and South pipelines in the works for years.
Correct me if I am wrong but those 2 pipelines run through EU / NATO countries. What if those countries end the pipeline? What then?
Xcathdra
Discussing the reverse pipeline in the media, only to have it destroyed, would be a PR nightmare for Russia.
Then let me ask - Why should the current Ukraine government pay for any of it when Putin refuses to acknowledge them as the lawful government?
Of course.. the US and other nations to the same thing. The underlying issue though was Russian stopping Ukraine Ngas, and by extension, affecting a large chunk of Europe.
strawburry
Hope they remember to pay their almost 2 BILLION dollar BILL for USED gas.
Good thing Russia has a Northern Pipeline and Southern Pipeling comming online next year.
I think Ukraine just cut off their nose despite their face, cut off the hand that fed them.
TritonTaranis
strawburry
Hope they remember to pay their almost 2 BILLION dollar BILL for USED gas.
Good thing Russia has a Northern Pipeline and Southern Pipeling comming online next year.
I think Ukraine just cut off their nose despite their face, cut off the hand that fed them.
I think it's the other way round tbh
Ukriane is close enough to the Middle East to buy cheaper liquified gas via the Black Sea while being bailed out by the IMF and the EU
As for the northern and southern pipelines you forgot the EU will also be sourcing it's gas from elsewhere also, so Russia needs to find another customer and build some more pipelines
strawburry
TritonTaranis
strawburry
Hope they remember to pay their almost 2 BILLION dollar BILL for USED gas.
Good thing Russia has a Northern Pipeline and Southern Pipeling comming online next year.
I think Ukraine just cut off their nose despite their face, cut off the hand that fed them.
I think it's the other way round tbh
Ukriane is close enough to the Middle East to buy cheaper liquified gas via the Black Sea while being bailed out by the IMF and the EU
As for the northern and southern pipelines you forgot the EU will also be sourcing it's gas from elsewhere also, so Russia needs to find another customer and build some more pipelines
Sourcing gas from elsewhere, such as?
Last news spin was ships steaming gas from the US to EU's gas aid. We all know thats, bovine methane.
Where else? Perhaps some other country will just buy Russia's gas and sell it on rebranded to EU
You forget one major factor, LOGISTICS.
EU gas consumption is not going down anytime soon, in fact, it is not going down at all, it is RISING.
edit on 9-4-2014 by strawburry because: (no reason given)
strawburry
Europe won't end their dependance on Russia's energy any time in the next 30 years, if you think a few ships of liquified gas from the US to Europe is going to fix it, omg please, get me a chair im gona fall laughing.
strawburry
1) you dont have enough ships, and if you did, the price of shipping would be too high and consumers wont pay the price hike.
2) you dont have the processing capacity for it
3) you cant even fuel yourselves
4) Shale gas yeah, thats going down a treat, as long as its in somebody elses back yard, in this case, sure, drill shale gas in the US as long as its not in my country
You're off your rocker and lost a grip on reality if you buy those political sound bites of the US gona fill the EUs gas needs.
HanzHenry
PR, that is not of any concern to Russia, as they view the PR from 'our side' as propaganda, and 'their side' of PR will not care. That is the problem with breakdown of diplomacy. It becomes basically a shouting match with 2 opposing views. Neither cares what the other feels or thinks.
HanzHenry
Ukraine is already in debt for previous energy. I compare it to my ISP, when i forget to pay i lose the promo discount and after a certain period they cut service until a payment is made.
HanzHenry
Europe is enabling the US in surrounding Russia and China due to payoffs of some type. Russia is like "ok, let me remind you we are not a doormat. You want to align with the US in their moves against us? Fine, then you are against us you no longer get the friend treatment"
strawburry
Sourcing gas from elsewhere, such as?
strawburry
Last news spin was ships steaming gas from the US to EU's gas aid. We all know thats, bovine methane.
strawburry
Where else? Perhaps some other country will just buy Russia's gas and sell it on rebranded to EU
strawburry
You forget one major factor, LOGISTICS.
EU gas consumption is not going down anytime soon, in fact, it is not going down at all, it is RISING.
edit on 9-4-2014 by strawburry because: (no reason given)