Russia to Demand Upfront Payment From Ukraine For Gas.

[dipsydoodle]

Source: Ria Novosti

GORKI, October 29 (RIA Novosti) – Russia has piled the pressure on Ukraine with ominous warnings Tuesday that it could begin demanding upfront payment for natural gas deliveries unless outstanding debts are settled.

Calls for advance payments for gas by Russian Prime Minister Dmitry Medvedev come against the backdrop of persistent acrimony provoked by Ukraine’s efforts to develop deeper economic and political ties with the European Union.

Gazprom chief executive Alexei Miller demanded an immediate resolution on the issue of Ukraine’s unpaid August gas bill, which he said amounts to $882 million.

“The signal that we are in effect getting from our Ukrainian colleagues is that the situation with payment for gas from Ukraine is going to get worse,” Miller told a government meeting presided by Medvedev.

Read more: http://en.ria.ru/russia/20131029/184409393/Russia-to-Demand-Upfront-Payment-From-Ukraine-For-Gas.html

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UPDATE 2-Russia's Gazprom demands Ukraine pay off overdue gas bill.

MOSCOW, Oct 29 (Reuters) - Russian gas export monopoly Gazprom demanded Ukraine pay an overdue gas bill "urgently" on Tuesday, saying it was extremely concerned about the debt, reviving fears of a new "gas war" between the neighbours.

Russia and Ukraine waged two such wars over gas prices in the winters of 2006 and 2009, with Moscow halting deliveries not only to Ukraine but to the rest of Europe, forcing some in the European Union to try to find alternative sources of energy.

Gazprom CEO Alexei Miller said Ukraine had been given until Oct. 1 to pay for August natural gas deliveries, but no payment had been received so far.

He told journalists Gazprom had paid Ukraine $1 billion up front for gas transit though its territory to Europe in order to allow Kiev to purchase gas for storage and to secure shipments to Europe over the winter.

http://uk.reuters.com/article/2013/10/29/russia-ukraine-gas-idUKL5N0IJ0AE20131029

[Sand Wind]

1. Russia is and was always a bad neighbour. Nt

[dipsydoodle]

2. That isn't the case in with respect to this issue.

Ukraine is paid transit fees for routing to Europe. They then either / both don't pay for their supply or as has happened in the past syhpon off some the European supply. If as is planned Gazprom / BP build a North Sea pipeline the issue for Europe could be overcome devoid of Ukraine's antics.

[LisaL]

3. It's Russia's fault that Ukraine didn't pay its bill?

[pampango]

4. Ukraine's drift towards the EU has angered Putin. There have been several trade disputes

between Russia and Ukraine recently.

Russia accused of trade war against Ukraine

Source: Associated Press August 15, 2013

KIEV, Ukraine (AP) — Ukrainian politicians are accusing Russia of waging a trade war as a way to pressure the country against signing a cooperation pact with the European Union.

Late last month Russia banned popular Ukrainian confectionary products from its stores, citing safety concerns. This week, Moscow imposed tough restrictions on scores of other products.

Ukraine's government has shied from openly criticizing Russia, a big trade partner, but a business group says the restrictions amounted to a "complete halt of Ukrainian exports." Hundreds of cargo train cars were reportedly stuck at the Russian-Ukrainian border.

Ukrainian opposition leader Arseniy Yatsenyuk said Thursday "this trade war has reached a threatening scale." Analysts see the move as an ill-disguised threat aimed at dissuading Kiev from signing a free-trade and political association agreement with the EU.

Read more: http://bigstory.ap.org/article/russia-accused-trade-war-against-ukraine

Ukraine–European Union relations http://en.wikipedia.org/wiki/Ukraine%E2%80%93European_Union_relations

http://www.democraticunderground.com/1014566023

[freshwest]

5. A billion for transit, nearly a billion owed. I'm mystified on the accounting there.

Seems like Ukraine has a good deal there. Russia is giving them natural gas for free, along with a profit for going through their territory to sell their natural gas to Europe. No idea how much Europe is paying for the natural gas from Russia via Ukraine. Something odd is going on there. Maybe Ukraine should charge enough to pay for what they use in their own borders. IDK.