Putin warns of gas shutdown to Europe if Ukraine fails to pay, page 1

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.”

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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.

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.

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.

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.