Russia warns Europe of gas supply cuts over Ukraine debt

[dipsydoodle]

Source: Reuters

(Reuters) - President Vladimir Putin warned European leaders on Thursday Russia would cut natural gas supplies to Ukraine if it did not pay its bills and said this could lead to a reduction of onward deliveries to Europe.

In a letter to the leaders of 18 countries, he demanded urgent talks with Europe on pulling Ukraine's economy out of crisis but made clear his patience was running out over Kiev's $2.2 billion gas debt to its former Soviet master.

His comments were Russia's most explicit threat to cut off gas to its neighbor, a move that could worsen a dispute over Moscow's annexation of Crimea that has resulted in the worst East-West crisis since the end of the Cold war in 1991.

"...Gazprom is compelled to switch over to advance payment for gas deliveries and in the event of further violation of the conditions of payment will completely or partially cease gas deliveries," Putin said in the letter, sent to European leaders including German Chancellor Angela Merkel, whose country is the largest consumer of Russian gas in the 28-nation EU.

Read more: http://www.reuters.com/article/2014/04/10/us-ukraine-crisis-russia-gas-idUSBREA3913C20140410

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Edited : Reuters changed both their header and the narrative.

and add :

Putin Says Further Violations by Ukraine Will Compel Russia to Cut Off Gas.

MOSCOW, April 10 (RIA Novosti) – Russian energy giant Gazprom will be compelled to switch over to prepaid gas deliveries to Ukraine or completely cut off natural gas supplies, should the country further violate its terms of payment, Russian President Vladimir Putin wrote Thursday in an open letter to 18 European leaders.

“Gazprom is compelled to switch over to advance payment for gas deliveries, and in the event of further violation of the conditions of payment, will completely or partially cease gas deliveries,” Putin explained, saying this was undoubtedly an extreme measure.

Talk of a gas cutoff came as Ukraine again defaulted on its gas debt in March, swelling past the November record of $1.45 billion.

Putin explained that Gazprom’s decision to switch to upfront payments for gas stemmed from Ukraine’s inability to pay its debts, despite unprecedented price cuts that Kiev had been recently enjoying.

“I would like to draw your attention to the fact that in March there was still a discount price applied, that is [the price was] $268.50 per 1,000 cubic meters of gas. And even at that price, Ukraine did not pay a single dollar,” the president said.

http://en.ria.ru/russia/20140410/189148364/Putin-Says-Further-Violations-by-Ukraine-Will-Compel-Russia-to.html

[cosmicone]

1. When one stops working for food

for the sake of feeling like a part of uppity Europe, one has to pay for one's burger, fries and cola.

[another_liberal]

2. What ingrates those Russians are! After all NATO has done to them . . .

This is so unexpected, unreasonable and uncalled for!

After the NATO countries have been nice enough to incorporate numerous former members of the Warsaw Pact into their alliance, build missile defense systems near Russia's borders, arm Russia's opponents with the latest weapons, station troops and military advisers in territory formerly part of the Soviet Union, blame Russia for the Western-engineered crisis in Ukraine and threaten crippling economic sanctions against Russia if her government doesn't accept the violent overthrow of Ukrainian President Yanukovich (a Russian ally) and abandon the ethnic Russians of Crimea (who recently voted overwhelmingly to join the Russian Federation).

In spite of all that good will the West has clearly shown, Russia is now demanding the coup-installed, "interim government" in Kiev must actually pay for goods Russia has already delivered them on credit! If they don't, those hard-hearted Russians are not going to deliver to them any more such goods (also on credit).

How can anyone even begin to deal with such a nefarious people as the Russians?

(sarcasm, if you hadn't guessed)

[DeSwiss]

3. There you are.....

- K&R

[dipsydoodle]

4. lol

Great picture.

[DeSwiss]

5. We've got to find customers for all that Canadian.......

....shale oil and gas we'll be helping to transport to..... somewhere, right? I mean separating existing European customers from there current oil and gas provider can only help the cause.

- We should never forget who's running this thing.......

[dipsydoodle]

7. One tanker = 50 million cars

across a year. Doing the rest of the maths in relation to Europe annual usage would help some realise what a tragic idea that is.

[freshwest]

6. IMO, this is an ongoing financial crisis for Ukraine that the West cannot fix, because it's not just

about past debt which they are defaulting on, but about delivering gas from now on. The pressure on Ukraine is so intense, it's bound to lead to more internal conflicts.

Putin is playing chess and not going for the short term. I doubt the billions matter in an economy like Russia. I don't see Russia as being dependent on the West for anything, with all Russia's natural resources. JMHO.

What does Russia expect and what is it pushing for... is it money, is it respect or is it more territory? Could this crisis have been avoided by not giving into the Maidan? Was it worth resisting? What is all this turmoil worth to Russia and the West?

BTW, I know the answer I may end up with is '42,' but I keep wondering is history is repeating and who is right and wrong there. Could be that all sides are?

Still doing my best to try to achieve that Nirvana-like state of total disinterest...

[DeSwiss]

8. History always repeats......

...until we stop his-story.

- When the Soviets attempted to setup shop in our neighborhood in 1961, we almost ended it all. The same chess game. It never ended....


Whoever is winning at the moment will always seem to be invincible. ~George Orwell