Ruusia cuts off gas to Ukraine

This is breaking news on RT as Ukraine fail to make their payment on their gas supplies.

After weeks of worthless foreplay whose outcome was known from the beginning despite just as worthless EU middleman Oettinger assuring everyone a deal was imminent any second now, overnight we got the long-anticipated mutual defection outcome and - as we warned - negotiations between Gazprom and Ukraine/EU fell apart with the Russian energy giant halting supplies to Ukraine unless Kiev prepays any and all gas deliveries from now on. Gazprom said it hadn't received payment for a debt it put at $4.458 billion by the Monday deadline it had set. "Ukraine will receive gas only in the amounts it has paid for," Gazprom said.

Gazprom said on Monday it had filed a lawsuit at the Stockholm arbitration court to try to recover the debt, while Ukraine's Naftogaz said it was filing a suit at the same court to recover $6 billion in what it said were overpayments.

A source at Gazprom said supplies to Ukraine had been reduced as soon as the deadline passed. EU data suggested that volumes were broadly stable as of 0630 GMT (7.30 a.m. BST), but it could take hours for data on Russian gas flows via Ukraine to reflect any reduction in supply in Slovakia or elsewhere.

Any reduction of supply could hit EU consumers, which get about a third of their gas needs from Russia, around half of it through pipelines that cross Ukraine. Earlier price disputes led to the 'gas wars' in 2006 and 2009 and Russian accusations that Ukraine stole gas destined for the rest of Europe.

Russia halts gas supply to Ukraine

Rainbows
Jane

It's really hard to figure out just what the Ukraine's problem is but they have a nasty attitude towards Russia that I don't thing is going to serve them well in the end .Along with getting what would be considered a good price for their gas ,Russia makes up a big chunk of their exports .Times have not been good for them but I think it's going to get terrible .This vid shows a bit of attitude and I think they should be careful what they wish for a reply to: angelchemuel

a reply to: the2ofusr1

Well this didn't help to keep negotiations going either...

Putin is a d**khead' says Ukrainian foreign minister Andrii Deshchytsia

The remarks, made by Andrii Deshchytsia at a rally outside the Russian embassy in Kiev on Saturday, were caught on camera.

Russian foreign minister Sergei Lavrov saw red at the insult, telling a press conference: “In my opinion, this is not an interior minister but a person conniving in riots and open demonstrations of extremism,

Deshchytsia

Rainbows
Jane

This all stinks of a plot. Gas prices are going to be pushed up by this. Petrol prices are going to sky due to Iraq. Why do we in the rest of the world have to suffer in our wallets due to this? I used to enjoy driving and putting on the central heating, now it's just so expensive

a reply to: the2ofusr1

Russia not paid. Ukraine overpaid. The accountants who know the truth are probably dead and the data shredded.

Everyone know in today's world, it's a given right to rip off anyone and everyone.

Same old world monetary stuff, different day. And of course the MIC makes it money as people kill each other over it.

I didn't think that Iraq was selling much oil .Libya's oil has been cut off for some time now .Iran would like to ship oil out but the west has sanctions on them .Looks like Qatar and the Saudi's are looking at making a killing .LITERALLY a reply to: ufoorbhunter

originally posted by: the2ofusr1
I didn't think that Iraq was selling much oil .Libya's oil has been cut off for some time now .Iran would like to ship oil out but the west has sanctions on them .Looks like Qatar and the Saudi's are looking at making a killing .LITERALLY a reply to: ufoorbhunter

How about the US, Russia, and Canada? Aren't they still the world's three largest oil producers? And they're up there for natural gas as well...create your own inflated profits.

a reply to: angelchemuel

You guys might want to read this NY Times Story from way back in March.

Right from the start of this conflict Dozens of western companies have been chomping at the bit to export oil and gas to the Ukraine. DOE the Department of Commerce and the Obama Admin have all been working hand in hand to pass new laws that could potentially open up vast new markets to American companies!

Politics yes, but it still all comes down to making money, and a lot of it!

Edit to add:
If you read the story they make it clear this move was meant to undermine Putin's control---

Hillary Rodham Clinton, the secretary of state at the time, for the purpose of channeling the domestic energy boom into a geopolitical tool to advance American interests around the world.

in short a kind of energy/economic blackmail, yet with a player like ExxonMobil in the thick of things, you get the feeling it's also capturing a big chunk of profits from what is otherwise a closed market

It would make more sense for Canada to refine our own oil then shipping it through a pipe line for exports half way around the world .I could never understand why we would be both exporting and importing oil .It would make more sense to import or export but not the two at the same time . a reply to: the owlbear

a reply to: angelchemuel

Well all this time Ukraine has just been stalling while they were stocking up their underground storage tanks. They just wanted to have enough time to grab what they needed then flip off Russia.Not a good idea,quite a few Ukrainians work in Russia and with exports etc. Ukraine will find they bit off their own noses to spite their faces.

From RT:
Kiev was also late in payments in the winters of 2006 and 2009. Both periods lasted about three weeks, during which Kiev attempted to siphon off supplies for themselves, which left millions of European homes without heat.

en.ria.ru... 0561808/Ukraine-Threatens-to-Siphon-off-Russian-Gas-if-Not-Satisfied-by.html

I suddenly remembered the 'other' pipeline.
South Stream.

The South Stream project is aimed at strengthening the European energy security. It is the key project in the diversification strategy for gas supply routes to the EU. The South Stream gas pipeline will ensure a direct connection between hydrocarbons suppliers and consumers thus raising significantly the energy supply security on the entire European continent.

South Stream pipeline

BUT...it would appear .....

Bulgaria unexpectedly ordered work on South Stream to be suspended on Sunday after holding talks with US Senators, and EU authorities ordered a freeze on the project.

and now because of this.....

Serbia didn’t cite political reasons, but rather said that they can’t complete their part of the project while their is a delay in Bulgaria.

www.darkpolitricks.com...

It would appear neither the US or EU care that Europe are set to freeze this winter........riots anyone???

Rainbows
Jane

If I didn't pay I'd get cut off what's the deal

originally posted by: Denoli
If I didn't pay I'd get cut off what's the deal

Whats the deal? Russia got pissed off when all this started an raised kievs price 80%!!!!!

What would you do if your energy price all of a sudden almost doubled ???

Thats the problem, the ukraine is being extorted for not 'going along with mother russia'

Well Russia told everyone that is what gonna happen. And unlike the western woosies Mr Putin do what he say. He don't just jump up and down throwing a tantrum and cry like the western presidents.

a reply to: starfoxxx

Erm....nooooo.....Russia brought down the price they had previously agreed with Ukraine and extended their first payment due date. Ukraine pay no more than the rest of Europe do.......but they have no compunction about syphoning off gas directed to the rest of Europe who have paid for it.
Please see the links provided by other posters.

Here....have one of these to go with your Jolly Roger and chill....I am


Rainbows
Jane

Well it appears this is going to court in Stockholm. Whether it will be sorted before Deecmber remains to be seen ....

both Gazprom and Naftogaz filed lawsuits against each other at the International Council Commercial Arbitration (ICCA) in Stockholm.

Gazprom said it wanted to recover $4.5bn from Naftogaz while Naftogaz said it was seeking to recover $6bn in "overpayment" for gas since 2010.

Russian Prime Minister Dmitry Medvedev said Ukraine's position "smacks of blackmail".

Ukrainian Prime Minister Arseniy Yatseniuk accused Moscow of blocking the deal to cause supply problems in Ukraine in the winter.

www.bbc.co.uk...

originally posted by: angelchemuel
a reply to: starfoxxx

Erm....nooooo.....Russia brought down the price they had previously agreed with Ukraine and extended their first payment due date. Ukraine pay no more than the rest of Europe do.......but they have no compunction about syphoning off gas directed to the rest of Europe who have paid for it.
Please see the links provided by other posters.

Here....have one of these to go with your Jolly Roger and chill....I am

Rainbows
Jane

Can YOU back up your lies???

"We have to be prepared to ensure that Russia doesn't use energy as a weapon against Ukraine; we can't stand by and let that happen," he said.

Russia raised the gas price for Ukraine by some 80% in April, from $268 per 1,000 cubic meters to $485.5, after protesters ousted a pro-Russian president in February. The Kremlin last week said it wouldn't improve on its offer to apply a discount.

Mr. Oettinger on Sunday night proposed a winter price in line with Gazprom's offer of $385 per 1,000 cubic meters, but a lower price for summer months of $300, an offer he said was rejected by Russia.

Ukranian officials said Ukraine's inventories and imports from Europe via reverse flows through Slovakia would see through to the end of the year. But Gazprom chief Alexei Miller expressed skepticism during a news conference in Brussels about Ukraine's ability to make up the gap.

Russia Raised gas prices when Ukraine didn't bow to mother russia
Your wrong, lay off the jolly rogers..

That's the deal, that is the problem...

Ukraine is being extorted for not following mother Russia plain and simple.

originally posted by: starfoxxx

originally posted by: angelchemuel
a reply to: starfoxxx

Erm....nooooo.....Russia brought down the price they had previously agreed with Ukraine and extended their first payment due date. Ukraine pay no more than the rest of Europe do.......but they have no compunction about syphoning off gas directed to the rest of Europe who have paid for it.
Please see the links provided by other posters.

Here....have one of these to go with your Jolly Roger and chill....I am

Rainbows
Jane

Can YOU back up your lies???

"We have to be prepared to ensure that Russia doesn't use energy as a weapon against Ukraine; we can't stand by and let that happen," he said.

Russia raised the gas price for Ukraine by some 80% in April, from $268 per 1,000 cubic meters to $485.5, after protesters ousted a pro-Russian president in February. The Kremlin last week said it wouldn't improve on its offer to apply a discount.

Mr. Oettinger on Sunday night proposed a winter price in line with Gazprom's offer of $385 per 1,000 cubic meters, but a lower price for summer months of $300, an offer he said was rejected by Russia.

Ukranian officials said Ukraine's inventories and imports from Europe via reverse flows through Slovakia would see through to the end of the year. But Gazprom chief Alexei Miller expressed skepticism during a news conference in Brussels about Ukraine's ability to make up the gap.

Russia Raised gas prices when Ukraine didn't bow to mother russia
Your wrong, lay off the jolly rogers..

That's the deal, that is the problem...

Ukraine is being extorted for not following mother Russia plain and simple.

Naftogaz of Ukraine was offered 385.5$ for 1 thousand cubic meters of natural gas by Gazprom. It is the lowest price for natural gas in Europe. Oettinger has admitted that it is a sound deal.
The offer is still on the table, but Ukraine demands the price to be as low as 268.5$ or they refuse to pay (!). It is absolutely ridiculous.

a reply to: starfoxxx

Oh, I'm sorry....I didn't think I was being aggressive.....but if you don't want to lighten up and just have a chilled discussion, that's fine.....

The reason for the collapse in talks: Kiev wants to pay $268.5 per 1,000 cubic meters of gas - the price it had been offered when Yanukovich was in power - but, in a compromise last week, said it would agree to pay $326 for an interim period until a lasting deal was reached. Moscow had sought to keep the price at the 2009 contract level of $485 per 1,000 cubic meters, but had offered to waive an export duty, bringing down prices by about one-fifth to $385, which brings it broadly into line with what Russia charges other European countries.

In other words, the delta was less than $60, and certainly a "fair" offer to Ukraine considering it is what Europe pays. However, it wasn't low enough for Kiev, which certainly is out of money once again having to spend the bulk of its IMF/EU aid to keep its military armed, and the only logical outcome - one in which the country would no longer receive something for nothing - transpired.

Earlier price disputes led to the 'gas wars' in 2006 and 2009 and Russian accusations that Ukraine stole gas destined for the rest of Europe.

Reuters

Reuters v Wall Street Journal.....I know which I trust more.

Rainbows
Jane

The UK 'Have I got news for you' satirical TV program intro had the Russian gas crisis all wrapped up for years.