The already strained relations between Moscow and Ankara have taken a turn for the worse. Gazprom has cut gas supplies by nearly a quarter after failing to reach an agreement with Turkish importers on discounts for Russian natural gas.
Delivery is down 23 percent, compared to the same period last year, Interfax reports, quoting data from Bulgarian gas operator Bulgartransgaz that processes about 50 percent of Russian gas going to Turkey.
According to the news agency sources, the reduction is linked to a price dispute between Gazprom and Turkey’s private gas importers. Continue reading »
Greece completes stage one of the dreaded “Russian pivot” as energy ministers from Athens and Moscow ink an MOU on Gazprom’s Turkish Stream pipeline. Meanwhile, Gazprom signs a deal with Shell and others to double the capacity of the Nord line, a move which will, over time, decrease the energy giant’s dependence on Ukraine for transport.
– Russia, Greece Ink Pipeline Deal As Gazprom Boosts Ukraine Bypass (ZeroHedge, June 18, 2015):
Two weeks ago, in “Greece Breaks America’s Heart, Will Sign MOU With Russia For Gas Pipeline,” we highlighted comments from Greek Energy Minister Panagiotis Lafazanis which indicated that Athens was prepared to sign an MOU with Russia on the Turkish Stream pipeline.
As a reminder, The Turkish Stream will allow Gazprom to bypass Bulgaria by piping gas through Turkey, then through Greece, Serbia, and Hungary straight to the Austrian central hub.
Washington urged Greece to spurn the Russians and support an alternative pipeline plan designed to let the EU tap into Caspian gas via a series of connecting pipelines running from Azerbaijan to Italy. The Greeks, seeing no need to view the two pipeline projects as competitors, indicated that they would be open to supporting both. “Greece is no one’s property,” Lafazanis said, adding that Athens would “move based on its national interests.” Continue reading »
– Russia’s Gazprom and China’s CNPC to exclude dollar from gas settlements (RT, June 16, 2015):
Russia and China expect to use the ruble and yuan in payments for gas supplied using the western Altay pipeline. When it and the eastern Power of Siberia pipeline is open Beijing will become the biggest consumer of Russian gas.
“As a sales contract is not signed, then, of course, the currency of payment has not yet been determined. However, the Chinese side and the Russian side are discussing [currency-Ed.] today and are in intricate negotiations on the possibility of paying in yuan and rubles,”Gazprom Export CEO Elena Burmistrova said Tuesday. Continue reading »
– The PetroYuan Is Born: Gazprom Now Settling All Crude Sales To China In Renminbi (ZeroHedge, June 9, 2015):
As Russia adjusts to Western sanctions stemming from the conflict in Ukraine, Gazprom is now settling all crude sales to China in renminbi. At the intersection of the petrodollar’s death and yuan hegemony is: the PetroYuan…
– EU charges Gazprom with ‘abusing’ market position in Central & Eastern Europe (RT, April 22, 2015):
Russia’s biggest gas utility, Gazprom, was hit with an antitrust case by European Union regulators for “abusing” its dominant position and overcharging customers for gas supplies. The investigation against the Gazprom has been ongoing for 2 years.
“We find that it (Gazprom) may have built artificial barriers preventing gas from flowing from certain Central Eastern European countries to others, hindering cross-border competition,” European Competition Commissioner Margrethe Vestager said in a statement. Vestager said there is no political element to the case. Continue reading »
– Greece May Sign Russia Gas Deal As Soon As Today (ZeroHedge, April 21, 2015):
It appears that Herr Schaeuble will be left in the cold disappointed as following comments from the Greek energy minister that a deal is coming “soon,” it is being reported that:
*RUSSIA MAY SIGN GAS LINK ACCORD W/ GREECE TODAY: ROSSIYA 24
*GREECE MAY GET LOANS USING RUSSIA GAS TRANSIT GUARANTEE: MILLER
According to Gazprom’s CEO comments on Greek TV, following his meeting with Greek PM Tsipras, Russia will guarantee 47BCM/YR of gas via Greece with the link to be built by a Russian-European group at a cost of around €2 billion.
– As Gazprom CEO Arrives In Athens, EU (Coincidentally) Files Anti-Trust Charges Against Russian Giant (ZeroHedge, April 20, 2015):
As the head of Russian gas giant Gazprom, Alexei Miller, arrives in Athens tomorrow (for talks with Greek PM Tsipras about “current energy issues of interest,” which we suspect will include finalizing the “Turkish Stream” pipeline heralded by many as Greece’s potential get-out-of-Troika-jail-card), he will face an increasingly anxious European Union. Fresh from its suit against Google, the WSJ reports, the EU’s competition regulator plans to file formal antitrust charges against Russia’s state-owned gas company OAO Gazprom on Wednesday. This re-opens a suit from 2012 saying that it suspected the company of abusing its dominant position in those countries’ natural-gas supply. It appears Europe is getting nervous…
– Gazprom says Ukraine paid another $15mn, enough for 5 days gas (RT, March 5, 2015):
Naftogaz has paid for 45.6 million cubic meters of gas which is enough to cover consumption for 5 days, according to Gazprom spokesperson Sergey Kupriyanov.
“Naftogaz has made a prepayment of $15 million for March gas supplies. Gazprom has received the sum into its payment account. This sum covers some 45.6 million cubic meters of gas, which is enough only for 5 days,” Kupriyanov said.
Currently Ukraine is accepting 10 million cubic meters of gas daily, Kupriyanov explained. Continue reading »
– Putin Slams Ukraine Decision To Cut-Off Gas To East As “Genocidal” (ZeroHedge, Feb 25, 2015):
Ukrainian authorities decision to halt gas supplies to Donetsk amid the ongoing humanitarian catastrophe occurring there “bear the hallmarks of genocide,” blasted Russia’s Vladimir Putin during an awkward press conference with Cyprus’ President Nicos Anastasiades (who he had just agreed bilateral military and trade deals with). “Apparently, some responsible leaders of the modern-day Ukraine are unable to understand the importance of humanitarian issues,” Sputnik News reports Putin concluded. In an attempt to gain leverage and force Ukraine’s hand however, Russia’s Gazprom has indicated it intends to suspend gas deliveries to Ukraine (and thus Europe via pipelines) unless Kiev makes a further prepayment. Continue reading »
– Russia Cuts Off Ukraine Gas Supply To 6 European Countries (ZeroHedge, Jan 14, 2015):
Vladimir Putin ordered the Russian state energy giant Gazprom to cut supplies to and through Ukraine amid accusations, according to The Daily Mail, that its neighbor has been siphoning off and stealing Russian gas. Due to these “transit risks for European consumers in the territory of Ukraine,” Gazprom cut gas exports to Europe by 60%, plunging the continent into an energy crisis “within hours.” Perhaps explaining the explosion higher in NatGas prices (and oil) today, gas companies in Ukraine confirmed that Russia had cut off supply; and six countries reported a complete shut-off of Russian gas. The EU raged that the sudden cut-off to some of its member countries was “completely unacceptable,” but Gazprom CEO Alexey Miller later added that Russia plans to shift all its natural gas flows crossing Ukraine to a route via Turkey; and Russian Energy Minister Alexander Novak stated unequivocally, “the decision has been made.” Continue reading »
– Ukraine PM Cries “Russia Wants Us To Freeze” As Locals Prepare For A Long, Cold Winter (ZeroHedge, Sep 26, 2014):
We would like to be able to commiserate with Ukraine’s US-muppet regime, we really would, but when Ukraine’s PM Argeny Yatseniuk, or Yats as he is known to Victoria Nuland, almost cried in an interview with Reuters yesterday when he pleaded that “[Russia] wants us to freeze… This is the aim and this is another trump card in Russian hands…. So, except military offense, except military operation against Ukraine, they have another trump card, which is energy”. we have just two things to say to him: i) he is absolutely correct, about Russia having the trump card that is – something obvious to everyone with half a brain from the start of the conflict, and ii) perhaps Ukraine should finally pay Gazprom not only for the gas they would like to use in the future, but also the gas they have already used and payment for which is overdue and which the IMF, i.e., the US taxpayer, gave Ukraine explicit money to pay for and instead was embezzled by the people in power. Continue reading »
– Russia may restrict import of Western cars, clothes in new sanctions tit-for-tat (RT, Sep 12, 2014):
Imports of Western cars and clothes into Russia could be restricted as part of a second round of “retaliatory” measures prepared in response to the sanctions against Moscow, says presidential aide Andrey Belousov.
There are many sellers of non-agricultural goods in the West who are heavily dependent on the Russian market, the official said. Continue reading »
– US Unveils Latest Russian Sanctions, Putin Immediately Responds That Russia Drafting Retaliation (ZeroHedge, Sep 12, 2014):
Moments ago, as was widely preannounced, the US Treasury unveiled its latest round of Russian sanctions. While the bigger picture was well-known, here are some of the highlights:
- U.S. SANCTIONS FOCUS ON FINANCIAL, ENERGY, DEFENSE SECTORS
- U.S. TREASURY ADDS SBERBANK TO SANCTIONS LIST,
- U.S. TREASURY SANCTIONS AFFECTS GAZPROM, GAZPROM NEFT, LUKOIL, ROSNEFT, AND SURGUTNEFTGAZ
- U.S. TIGHTENS DEBT FINANCING RESTRICTIONS TO 30 DAYS
As Bloomberg reports, action deepens existing sanctions on Russian financial institutions, expands sanctions on Russia’s energy sector, targets additional energy- and defense-related firms, U.S. Treasury says in statement. “Today’s actions demonstrate our determination to increase the costs on Russia as long as it continues to violate Ukraine’s territorial integrity and sovereignty,” Under Secretary for Terrorism and Financial Intelligence David S. Cohen says in statement
Treasury Dept says it “maintains significant scope to expand these sanctions.” Continue reading »
– Here Is Why Europe Just Launched The “Nuclear Option” Against Russia (ZeroHedge, Sep 8, 2014):
Europe’s leaders, we assume under pressure from Washington, appear to be making a big weather-related bet with their taxpayers’ lives this winter. As they unleash funding sanctions on Russia’s big energy producers, Europe has pumped a record volume of natural gas into underground inventories in an effort to ‘outlast’ Russia and mitigate any Napoleonic “Winter War” scenario. The plan appears to be to starve Russian energy firms of cashflow – as flows to Europe are already plunging – and remove their funding ability, potentially forcing severe hardship on Russia’s key economic drivers. There appears to be 3 potential problems with this plan…
As Bloomberg reports,
Europe’s reliance on Russian natural gas shipments via Ukraine is declining after the region pumped a record volume of the fuel into underground inventories, minimizing the risk of shortages during the coming winter.
– Europe Goes “All In”: Will Sanction Rosneft, Gazprom Neft And Transneft (ZeroHedge, Sep 7, 2014):
Until this moment, the main reason why everyone mostly dismissed Europe’s sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide. This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe’s latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft.
— Peter Spiegel (@SpiegelPeter) September 7, 2014
— Peter Spiegel (@SpiegelPeter) September 7, 2014
This is what is known in game theory terms as a major defection round. Continue reading »
– Russia’s Gazprom to fall under new EU capital ban – sources (RT, Sep 7, 2014):
Russia’s Gazprom Bank and oil producer Gazprom Neft will fall under new sanctions approved by the European Union on Friday, Reuters cited an EU diplomat as saying. The sanctions reportedly include a new ban on raising capital in the 28-nation bloc.
The sanctions were agreed against Russia for its alleged role in the Ukrainian crisis, the diplomatic source said. Continue reading »
– Europe Goes “All In”: Will Sanction Rosneft, Gazprom Neft And Transneft (ZeroHedge, Sep 7, 2014):
Until this moment, the main reason why everyone mostly dismissed Europe’s sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide. This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe’s latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft. Continue reading »
– The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan (ZeroHedge, Aug 27, 2014):
Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.
This changed in late June when first Gazprom’s CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People’s Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.
And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.
According to Russia’s RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world. Continue reading »
– Gazprom To Europe: We Own You (At Least Until 2016) (ZeroHedge, Aug 14, 2014):
It is no secret that in scrambling to find an alternative to Russia’s energy-export dominance, Europe is actively seeking to recreate the US shale miracle (at least superficially, recall that a month ago Germany shelved shale-gas drilling plans until at least 2021, when it would again reassess the shale ban). Curiously, one of the few places that features as a most probable candidate for shale drilling, is none other than Ukraine itself whose Dnieper-Donets basin is a place targeted by local energy company Burisma, where as we have reported extensively in the past, none other than Joe Biden’s son, Hunter, has been strategically placed as a director to give the US a front line of sight into drilling developments.
There is one problem, however, and a rather major one at that: it will take Europe years, in a best case scenario at that, before it can bring its shale output online. In fact, according to Gazprom’s quarterly report released on Wednesday, shale gas production in Europe could be possible in Europe not earlier than in 2016-2018. Which, of course, is Gazprom’s polite way of saying that for at least the next two years, and likely far longer, European marginal gas needs will be met by the dreaded Russian semi-nationalized monopoly, which in turn means that for all the posturing, the Kremlin will have an exclusive “right of first refusal” to determine European economic growth with the literal push of a button.
“Commercial shale gas production in Europe can begin not earlier than in 2016-2018 even with positive geological surveys. But production volumes will not bring about major changes in the European gas market due to a decline in conventional gas production,” the report said. Continue reading »
– Ukraine Prepares To Impose Russian Gas Transit Ban, Commit Economic Suicide (ZeroHedge, Aug 8, 2014):
While Ukraine has long since ceased being a customer of Gazprom (for the simple reason being that it can’t afford to pay for historical gas purchases let alone future ones, and with a long cold winter just 3 months ahead, Kiev is praying that its brand new Western “allies” will give it the loans it needs to buy Europe-sourced gas), the bulk of Russia-sourced gas into Europe still transits through Ukraine.
Not surprisingly, Ukraine correctly understands this is the last trump card it has in any negotiation with the west, or the east. It is this trump card that went into play moments ago when Ukraine’s Prime Minister who recently resigned and whose resignation was not accepted, said that Ukraine is considering banning the transit of all Russian “energy resources”, i.e. European gas.
Ukraine ready to impose sanctions against any transit via its territory, including air flights and gas supplies to Europe, Prime Minister Arseniy Yatsenyuk said Friday. Ukraine’s Parliament will vote on the sanctions on Tuesday. Kiev has also prepared a list of 172 Russian citizens and 65 companies predominantly Russian to put under sanctions for “sponsoring terrorism, supporting the annexation of Crimea, and violating the territorial integrity of Ukraine,” Yatsenyuk said at a briefing on Friday. Continue reading »
H/t reader squodgy:
“So glad this bitch has arrived on the scene.
Now we know for sure it is all a set up.”
And here are some pics to show the world whose ‘bitch’ she is:
– Hillary Tells EU to Use MH17 Tragedy to Find Alternatives to Gazprom (dollar dumping gas giant) (Activist Post, July 20, 2014):
Ah, now the agenda is starting to make a bit more sense. Hillary Clinton doesn’t want a good crisis to go to waste. She told Charlie Rose that her recommendation to the European Union is to take advantage of the shot-down MH17 tragedy to “Immediately accelerate efforts to find alternatives to Gazprom.”
Moscow-based Gazprom is the largest producer of natural gas in the world and one of the globe’s largest companies. A few weeks back on June 26th they announced that they would settle contracts with China using yuan or rubles instead of dollars. This move came about one month after Russia and China announced a record $400B gas deal. That’s a whole lot of dollars that won’t be needed in the international economy.Couple that with the launch of the BRICS development bank, and motive for aggressive posturing towards Russia becomes a bit clearer. Continue reading »
– Russia Rushes To Seal Ukraine-Bypassing Gas Pipeline: Lavrov Pays Bulgaria A Visit (ZeroHedge, July 7, 2014):
As we remarked two weeks ago, when observing the recent developments surrounding the suddenly all-important South Stream gas pipeline bypassing Ukraine entirely, and instead traversing the Black Sea before crossing Bulgaria, Serbia, Hungary and terminating in the Austrian central European gas hub of Baumgarten, we said that all of Europe is suddenly focused on if and how Russia will make headway with a project that may be the most important one for not only Europe’s energy future but the impact Russia will continue to have over Germany et al. And of course, Ukraine. Because should Russia find a way to completely bypass Kiev as a traditional transit hub for Russian gas, it would make the country, and its ongoing civil war, completely irrelevant not only for Russia, but worse, for Europe, the IMF, and Ukraine’s staunch western “supporters and allies” as well.
Showing just how Europe perceives the Russian “South Stream” threat was a comment from a recent NYT article, in which Günther Oettinger, Europe’s top energy official, was quoted as saying that the Ukraine crisis “has slowed down our progress on South Stream considerably… We can’t just give in to the Russians every time.” Alas, since the Russians control the all important gas, Europe has zero choice.
This explains why even as the western media finally remembered over the weekend there was a Ukraine civil war going on following an advance by the Kiev army to retake some rebel strongholds in the Donbas region, with some wondering what if anything Putin would do in retaliation, what Putin, or rather his envoy Sergei Lavrov were actually doing, was completely ignoring the Ukraine situation (where the West has long since conceded the loss of Crimea to the Kremlin) and instead focusing on securing the successful launch of the South Stream (remember: the second South Stream goes online, Ukraine becomes irrelevant). And since Russia already signed another historic agreement with Austria in June, which positioned the AAA-country (with some surprising emerging bank troubles subsequently) squarely against its fellow European peers, it was the turn of the other South Stream countries, namely Bulgaria. Continue reading »
Again, it’s Ukraine vs East Ukraine, but Russia is now told to solve the problem the U.S. and the EU have created in the first place???
Reader Marilyn commented:
“The EU receives E120 billion a year from Russia. Any threats are hot air, nothing more. They better shut up before they start sounding like the mendacious cries of the US.”
Reader squodgy commented:
“This is blatant intimidation.
Vlad has used International Law to prove his stance in the past.
Western MSM presstitutes ignore the other’s argument.
His only option is to fight fire with fire & cut off the gas completely.”
And as predicted here comes Putin’s retaliation.
And this, unlike the EU’s empty intimidation talk, IS a real threat.
The EU seems to feel an urgency to go back to the Neolithic Age. (And I am not joking!!!)
And that is what the EU will get if it is not stopping to act like the US puppet that it is.
If the gas transit will be stopped completely, then prepare for energy prices (and food prices) to skyrocket.
– Russia Reveals “Plan B”: Gazprom Says Gas Transit Via Ukraine May Be Stopped Completely (ZeroHedge, June 30, 2014):
A few days ago, when we wrote our “explainer” on the need for Russia to have an alternative pathway for its gas, one which bypasses Ukraine entirely and as the current “South Stream” framework is set up, crosses the Black Sea and enters Bulgaria before passing Serbia and Hungary on the way to the Central European energy hub located in Baumgarten, Austria, we said that “one short month after Putin concluded the Holy Grail deal with Beijing, he not only managed to formalize his conquest of Europe’s energy needs with yet another pipeline, one which completely bypasses Ukraine (for numerous reasons but mostly one: call it a Plan B), but scored a massive political victory by creating a fissure in the heart of the Eurozone, after Austria openly defied its European peers and sided with Putin.”
– Austria signs Russian pipeline deal, hosts rare Putin visit (Reuters, June 24, 2014):
VIENNA, June 24 (Reuters) – Austria gave its final approval to a controversial Russian gas pipeline project on Tuesday, defying EU officials and welcoming Russian President Vladimir Putin to the neutral country that has been a long-standing energy customer for Moscow.
The chief executives of Russia’s Gazprom and Austria’s OMV sealed the deal to build a branch of the South Stream gas pipeline to Austria, a staunch defender of the project in the face of opposition from the European Commission.
South Stream, which will cost an estimated $40 billion, is designed to carry Russian gas to the centre of Europe, a continent already dependent on Russia for a third of its gas needs, on a route that bypasses current transit country Ukraine. Continue reading »
– Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles (ZeroHedge, June 26, 2014):
A little over a month ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom’s CFO Andrey Kruglov uttered the magic words (via Bloomberg):
- GAZPROM READY TO SETTLE CHINA CONTRACTS IN YUAN OR RUBLES: CFO
In other words just as the US may or may not be preparing to export crude – a step which would weaken the dollar’s reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies – the world’s two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback. Continue reading »
– Russia Says Ukraine Took Gas Despite Cutoff; Sends More Tanks/Troops To Border (ZeroHedge, June 23, 2014):
The deadline passed on June 16th for Ukraine’s payment for gas already provided and upfront ‘pre-payments’ for ongoing deliveries. So what the Russian Energy Minister wants to know is how Ukraine took 3.8mcm on June 19th, 4.5mcm on June 20th, and 1mcm on June 21st. It appears Ukraine is claiming the gas supplies are reverse flow from Europe but this has not stopped Russia as The Pentagon reports more Russian troops at the Ukraine border and that they are preparing to send more tanks.
Since the cutoff on June 16th, Ukraine has ‘taken’:
- 3.8mcm on June 19
- 4.5mcm June 20
- 1mcm on June 21
According to Russia’s energy minister.
As it appears Russia sends gas to Europe (via Ukraine) and Ukraine holds on to it – claiming it is “reverse flow.”
Ukraine remains open…(of course) Continue reading »
– US “Ready To Act” As Russia Looks To Ban US Consultants & Block EU Gas Transit (ZeroHedge, June 19, 2014):
It appears Russia ‘retaliation’ continues for the ‘costs’ imposed by the West on Putin and his people (Russia +28%, S&P +6% since sanctions). Putin looks set to take on both EU and US as RT reports that Russian MPs are preparing a bill to ban the use of US consulting companies in Russia; and then Ukraine’s Naftogaz says Russia’s Gazprom seeks to end its accord on daily gas transit – a move which could threaten EU gas supplies. The US put its best man forward to respond and Treasury Secretary Jack Lew thretatened “US is ready to act” on Russia if Ukraine escalates…
Russia retaliation #1: Continue reading »
AND NOW …
– Ukraine-Russia Near “Serious Conflict” Following Explosion In Largest European Gas Transit Pipeline (ZeroHedge, June 17, 2014):
With 2 Russian TV journalists killed in recent days and on the heels of Russia’s cutting off Ukraine’s gas supply for non-payment, Interfax is reporting that:
- *EXPLOSION ON UKRAINE GAS TRANSIT PIPELINE REPORTED: IFX
- *INTERFAX CITES UKRAINE INTERIOR MINISTRY ON GAS PIPELINE BLAST
Witnesses say flames are reaching 200 metres high. Gazprom shares are tumbling on the news (as should European stocks) and Russia’s Foreign Affairs Committee Chief Aleksei Pushkov warned relations between Ukraine and Russia have entered a new stage and are “moving closer towards a serious conflict.”
– Russia Halts Gas Supplies To Ukraine (ZeroHedge, June 16, 2014):
After weeks of worthless foreplay whose outcome was known from the beginning despite just as worthless EU middleman Oettinger assuring everyone a deal was imminent any second now, overnight we got the long-anticipated mutual defection outcome and – as we warned – negotiations between Gazprom and Ukraine/EU fell apart with the Russian energy giant halting supplies to Ukraine unless Kiev prepays any and all gas deliveries from now on. Gazprom said it hadn’t received payment for a debt it put at $4.458 billion by the Monday deadline it had set. “Ukraine will receive gas only in the amounts it has paid for,” Gazprom said.