Russia ready to restart gas flow to Europe

[Dover]

Source: LATimes

Putin reaches a deal with the European Union to supervise the flow of natural gas through Ukraine, though Moscow and Kiev have yet to resolve their price dispute.
By Megan K. Stack
January 9, 2009

Reporting from Moscow -- Russian Prime Minister Vladimir Putin struck a deal early today with the European Union on supervising the flow of natural gas through Ukraine, paving the way to restart shipments to fuel-starved European customers.

The price dispute that first drove Russia to cut off gas to Ukraine on New Year's Day had yet to be resolved, and there was no word on how soon gas deliveries to Europe would start up again. There was no immediate response from Ukraine.

Still, European officials said they expected Russia to resume gas deliveries. The agreement calls for monitors to ensure that Ukraine doesn't siphon fuel en route from Russia to the EU.

Fuel shortages worsened in the last two days, after Gazprom, the Russian gas monopoly, stopped pumping gas through pipelines that cross Ukraine. In Eastern Europe, schools and factories were forced to shut down, and in some regions shivering families scrounged for wood and coal to heat their homes....>

Read more: http://www.latimes.com/news/nationworld/world/la-fg-russia-gas9-2009jan09,0,6120328.story

[dipsydoodle]

1. Some background details

Ukraine and Russia face negotiations over the renewal of gas supply contracts every year, but by midnight on 31 December 2008 they had failed to agree on the price Kiev should pay for gas in 2009.

After initially offering to supply Ukraine at a price of $418 (£288; 299 euros) per 1,000 cubic metres of gas, Gazprom eventually dropped the offer to $250.

Russian Prime Minister Vladimir Putin said that price, less than half of what most countries in Europe pay, was very generous.

But Ukraine rejected this offer and Moscow accused Kiev of blackmail by threatening supplies.

http://news.bbc.co.uk/1/hi/world/europe/7240462.stm

It's worth reading the whole article which helps put this in perspective.

[dipsydoodle]

2. EU gas monitors arrive in Ukraine

There are hopes that gas flows through Ukraine may soon be restored after the first EU monitors arrived to start checking pipelines from Russia.

Hundreds of thousands of homes in Europe remain without heating amid plunging temperatures, following a row over gas between Russia and Ukraine.

But Russia says shipments will resume when Russian, Ukrainian and EU monitors start work, possibly later in the day.

It may still take several days for gas to reach some areas, however.

http://news.bbc.co.uk/1/hi/world/europe/7820315.stm

[Phred42]

3. Just Putin letting EU know which side ot their bread is buttered

[redqueen]

4. Thank goodness...

yesterday the BBC reported that tens of thousands of homes were without heating during a cold snap... this morning they reported it was hundreds of thousands.

http://news.bbc.co.uk/2/hi/europe/7819429.stm