Russia Cuts Off Gas To Ukraine

The Russian natural gas monopoly Gazprom has cut off all fuel sources to the Ukraine. The cause of the gas cuttoff was a dispute in pricing. The president of Ukraine called the Action by the gas giant "unacceptable".



A gas giant like Gazprom supplies gas to all of Russia and countries surrounding this icy, frigid region. In this region, most of this gas is used for cooking and keeping warm during the frigid winters. Many Ukrainian homes will be cold for the winter.

[edit on 1-1-2006 by Nerdling]

[edit on 1/1/2006 by TheRanchMan]

[edit on 2-1-2006 by asala]

Very sad that in countries like Russia and Ukraine gas is a life and death issue.

Countries should not be allowed to play with the lives of people like that.

In this case it could bring disastrous results.

It "will" bring disastrous results. It seems that president Putin is wanting more than ever to bring back the days of Communist Russia, or was that the plan all along which many Russian military officers who defected to the west have been telling us for so long?

Although not too glamorous, this issue could be one of the most serious and potentially far reaching of recent times.

Russia supplies 30% of Ukraine's gas, and about 25% of Western Europe's needs.

25% of Western Europe's needs!!!

Russia effectively has the power to hold the whole European continent to ransom if it so desires.

Current events must surely hit home to energy policy planners in Europe how urgent it is to devise stand alone, long term, strategies now, in order to neutralise any possible future disruption that could be exerted by a
near-monopoly fuel supplier.

BBC

time for regime change in russia me thinks, about time too.

I must admit I find the current 'spin' on this story hilarious if somewhat tragic.......and wildly hypocritical given the way ordinary customers are treated in our markets here in the 'west'.

I must admit I found it rather amusing that the USA has felt moved to make petty trouble-making comments supportive of the old soviet 'client state' system as opposed to seeing one and all face the rigors of the 'markets'.
How the world turns, eh?

I'd love to see how the various 'western' governments (especially the USA's) would react if the ordinary customers took this kind of line with their energy suppliers.
Should we all "demand" that the energy price rises seen recently be phased in over several years?!
Given the way home heating oil (something less glamorous than the price of petrol/gas in the headlines and which has been completely ignored but here at least it has gone from a low of around £85 per 900litres to a current £310) has shot up in recent years that would have been a luxury I'd have liked.

Yeah right.

The Ukrainians appear want to move towards a more 'western' kind of political 'stance'.......and ever-more away from Russia.
Great.
Good for them.
Their free political choices and all that.

However that comes with a 'price' (as they should know given their history with Russia).
That price being that Russia sees no reason why she should supply them with their gas at the previously favourable and enormously 'knocked-down rate'.

Why should they?

The Ukrainians were paying around $55 - $57.5 per 1000 cubic metres of gas......far below the market rate.
The Russians want to charge the Ukrainians the market rate ($220 - $239 per 1000 cubic metres).

The Ukrainians think they have sufficient stocks to withstand this reduction in supply and so have refused to agree to pay the 'market rate'.
Hence the Russians have cut their supply.

Whilst it is true that it would appear there may be some unintended knock-on effects from reducing the gas pressure in the pipelines (and that it might be the case that the Ukraine may actually be stealing gas from those gas lines that cross their territory) there is actually no current 'threat' of any kind to "western Europe's"! gas supplies.

Nor should there be either, that is IMO typical of the current hysteria in the energy markets.

Ukraine has insisted that Russian proposals - which would see the cost of importing Russian gas quadruple to between $220 and $230 per 1,000 cubic metres - are unacceptable.

Ukraine says it is happy to pay market rates, but wants price increases to be phased in gradually over several years.

news.bbc.co.uk...

........and what kind of unthinking madness is it that would casually suggest that the legitimate desire of a supplying country to see it's customer country pay the international market rate for a fuel as grounds for a 'regime change', huh?



[edit on 2-1-2006 by sminkeypinkey]

From Sminkey's link -

It has argued that Belarus, a close ally of Russia, will pay just $46 per 1,000 cubic metres for gas after a recent agreement, while both Georgia and Armenia are also paying less.

I suppose that this fact, along with the suspicion that Russia's actions may be tied to the upcoming Ukrainian elections, has upset some people.

BTW, Yuschenko's face seems to be a lot better these days!!!!

[edit on 2-1-2006 by KhieuSamphan]

If the Ukraine doesn't want to pay the price for natural gas that Gazprom demands, then why should Gazprom have to supply the Ukraine with natural gas?

A 400% increase in prices isn't really "fair" imo, if the increase unfounded, but life isn't always fair. Take it or leave it.

There's a pre-existing thread on this topic: www.abovetopsecret.com...

Please add you comments to that thread. Closing this one.
.