Russia Halts Natural Gas Sales to Ukraine

[Clara T]

Russia Halts Natural Gas Sales to Ukraine
Sunday January 1, 2006 5:17 PM
By JIM HEINTZ
Associated Press Writer

MOSCOW (AP) - Russia's natural gas monopoly halted sales to Ukraine in a price dispute Sunday and began reducing pressure in transmission lines that also carry substantial supplies to western Europe.
Ukraine's natural gas company Naftogaz acknowledged the reduction by Russia's Gazprom.

``Gas is not flowing at all through some transit routes, which can lead to a fall in pressure in all the pipelines and limit the overall supply of gas to Ukraine and Europe,'' said Naftogaz spokesman Eduard Zaniuk.
However, he said, ``for the people and municipal services there will be enough gas.''

Gazprom had given Ukraine a deadline of midnight Saturday to agree to pay quadruple the amount it previously paid for Russian gas, which accounts for about a third of the consumption in the country of 48 million people.

http://www.guardian.co.uk/worldlatest/story/0,1280,-5516205,00.html

[Deja Q]

1. And to think, if those were American corporations,

they'd all band up to charge 8x the rate. Higher demand = higher prices, you know.

[ugarte]

2. Ukraine wants a free ride

They want Russia to subsidize their integration into Europe. Why should Russia do that? Let Ukraine pay the same rates as Europe.

[Flaxbee]

3. Ukraine wants it both ways...

they want the subsidized prices they'd get if they were part of the old "Soviet sphere" but total and complete independence.

Putin offered subsidized gas thru the end of the first quarter 2006 to get everyone through the winter, but Yushenko refused b/c the prices would go up (something every other country is urging Russia to do) in April.

[baby_bear]

4. I don't agree with you guys

Putin is trying to make it impossible for Yushchenko to be re-elected.
Yshchechenko is a thorn in Putin's side. Putin wants to hurt the Yukraine
populace in the pocket but make it seem like Yushchenko's doing.

Putin is up to no good at all here.

b_b

on edit:
<snip>
The dispute comes a year after the Orange Revolution brought a pro-Western government to power in Ukraine, and ends a decade of post-Soviet subsidies in the form of cheap energy that allowed Moscow to retain some influence over the former Soviet republics.

</snip>
from http://www.nytimes.com/2006/01/01/international/europe/01cnd-russia.html?hp&ex=1136178000&en=82193cd751007f52&ei=5094&partner=homepage

[oblivious]

5. The price seems a bit high (almost 4x Turkmenistan's price??)

Gazprom fails to clinch Turkmen gas deal

ASHGABAT - Weekend talks between Russia's Gazprom energy giant and the Central Asian state of Turkmenistan, one of the firm's key gas suppliers, ended without agreement on price levels for the coming year, Turkmen media said on December 12.

Turkmen President Saparmurat Niyazov last month announced that he was increasing gas charges to Gazprom for next year from $44 per 1,000 cubic meters (35,000 cubic feet) to $60 per 1,000 cubic meters, a 37-percent increase. He pointed to increased costs resulting from increases in the cost of extraction equipment on the international market. Gazprom signed a 25-year framework agreement with Ashgabat in 2003 in order to help it meet rising European demand.
http://www.metimes.com/articles/normal.php?StoryID=20051213-082027-5867r

[oblivious]

6. US prices: $15 vs Russia's new price of $230? I don't understand.

Natural gas, which briefly topped $15 per 1,000 cubic feet earlier this month, has been under pressure lately amid forecasts of mild weather in much of the United States. On Friday, natural gas futures settled at $11.225, up 83 percent on the year.
http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20060101/BIZ/601010355/1005

[Paulie]

7. It's in cubic METERS, not FEET

Got to watch your units of measure. :)

One cubic meter equals 35.3 cubic feet

$11.225 x (35.3 x 1000) = $396.24

It's still a bargain.......

[oblivious]

10. Thanks. But that turkmenistan gas is still incredibly cheap at $60.

But then if Russia gets away with this, I guess that $60 won't last long.

[occuserpens]

14. Thanks a lot for the info!

$230 instead of $400 - not bad at all!

[54anickel]

8. Russian gas row reignites nuclear debate

http://www.guardian.co.uk/frontpage/story/0,16518,1676593,00.html

A Russian gas supply crisis last night triggered warnings that UK householders will face further significant price increases during 2006. Growing unease about future energy security in Britain also led to calls for a quick decision on a new generation of nuclear power stations. Analysts predict that, as things stand, by 2020 almost 70% of Britain's electricity generation will be reliant on gas imported from countries such as Russia.

Many homeowners began the new year yesterday with a 14.5% hike in their bills but British Gas said a 40% increase in wholesale prices since September made further rises inevitable.

snip>

British Gas lost 1 million customers in 2004 and a further 670,000 in 2005 on the back of a 14.2% rise in bills from September 2005, plus a 12.4% hike in September 2004. There was also a 5.9% rise in January of that year.

snip>

The consumer group, energywatch, warned suppliers that there was "no excuse" to use the Russian problems as a reason to unleash another round of price rises during 2006. "We don't draw very much gas at all, well none, from that part of the world and there are lots of other sources of gas for us. However, it might put a bit of pressure on prices there and, sadly, the gas and oil companies are always looking for excuses to ramp up prices," energywatch's chief executive, Allan Asher, told the BBC.

"It would be the fear, uncertainty and doubt that causes the problem , not physical supply," he added, expressing fears that wholesale prices could rise by 15% this year.

more...

[cal04]

9. Ukraine seeks dialogue to settle gas dispute

Ukrainian President Viktor Yushchenko is calling for fresh talks with the Russian Government to resolve an energy crisis.
Russian gas supplies to Ukraine have been cut off because last-ditch talks failed to settle a price dispute.

Ukrainian Foreign Minister Boris Tarasyuk is accusing Russian authorities of tampering with that supply. "We are ready to discuss market prices, but this has to be done gradually," he said. "Especially taken into account that Russia has wantonly stopped transit of Turkmen gas. In fact we don't need Russian gas at this moment. "So what we need is to guarantee the deliveries of Turkmen gas through Russian pipeline."

http://www.abc.net.au/news/newsitems/200601/s1540522.htm

[RUMMYisFROSTED]

11. "European" Russia is fracturing.

:party:

[ny_liberal]

12. This is not good

[David__77]

13. Ukraine looks bad here.

They want the subsidies of Russia, vestiges of the Soviet era, but spit on Russia and even promote pro-Nazi "volunteers" who fought the Red Army as "patriots."

[amandabeech]

15. A contract for gas deliveries from Russia to Ukraine and for fees

on Russian gas transiting Ukrainian pipelines exists. The Ukrainians claim that the contract price from 2004 to 2009 is fixed at $50. The Russians claim that the contract price must be negotiated every year, and negotiations have been ongoing. Ukraine also asserts that the transit fee is 15% of all gas shipping through its pipeline system, and the Russians don't seem to keen on that now, either.

Under the contract, disputes must be submitted to a commercial arbitration panel in Stockholm, Sweden. I assume that will happen.

Ukraine has been under Russian control for a long time, and folks in western Ukraine in particular have long resented it. Ukrainians also resent Stalin's forced, artificial famine from the 1930s that killed hundreds of thousands, if not millions, of of Ukrainians. The artificial famine was one reason why some Ukrainians embraced the Germans, who promised them independence, without regard to Nazi anti-Jewish atrocities. At least that seems to be the Ukrainian perspective.

To me, the separation of these two countries seems like a very, very messy divorce with ongoing property division problems.

[Psephos]

16. Do you have *any* idea what Russia did to Ukraine in the 1930s?

I would spit on Russia too.

Meanwhile, natural gas is hardly a luxury item. It is a core necessity. All those "socialists" left over from the communist days seem to have forgotten the common person's needs.

"When elephants fight, the grass gets trampled."

Hard to believe those with a socialist point of view on THIS board are also making excuses for Russia. Gazprom is state-controlled.

One thing for sure, one man (Putin) should not decide whether 47,000,000 others shiver.

Peace.

[LisaL]

20. Well, gee, if you going to go on what one country did to another

years and years ago...

[Psephos]

22. Using your logic, we should forget what happened to slaves in US, too

I personally know someone whose family died in the artificial famine. It may have been "years and years" ago but she is here today to remember it all. Her mother was shot in front of her for hiding a head of cabbage under a floorboard. It was stolen from a field she was forced to work in, so her family could have Easter dinner. How sick is that? Forcing starving people to harvest food for people in another country, and shooting them if they slip a cabbage or a few carrots in a jacket.

Try this book, you may feel differently after reading about the use of hunger as a weapon of extermination. Or choose another book...but don't remain in the dark.

http://www.amazon.com/gp/product/0195051807/qid=1136243759/sr=8-5/ref=pd_bbs_5/103-7509960-0836634?n=507846&s=books&v=glance

Peace.

[Media_Lies_Daily]

24. The overwhelming ignorance of your post is simply astounding.

[MisterP]

21. UNA-UNSO was pulling for "The Pryshchyk" in '04

and are hankering for equal recognition of the "Ukrainian Liberators" as is given to Red Army vets--and this caused scuffles from Lviv to the Don.

[Media_Lies_Daily]

23. You don't know much Russian-Ukrainian history, do you?

[blackhorse]

17. Sounds to me

... like the bill for Ukrainian political independence has come due.

Yeah, Russia (= Putin) is playing hardball. Well, the EU thought it was just swell that Ukraine asserted itself and defeated the pro-Moscow ruler. The EU, and Poland in particular since they were so engaged in the Ukrainian events last year, should now cough up the money needed to pay the new gas bill in Ukraine. If the EU doesn't want to do that, then the EU has no business encouraging former Soviet republics to assert themselves. Welcome back to European geopolitics, Brussels. The old game is afoot once more, just the players have changed.

Cheers

BH

[malaise]

18. Great move Putin

time for some balance on this planet.

[occuserpens]

19. 2006-01-02 The New Year gas madness

http://inplainview.monitor.us.tt/