Cash For Gas: Russia Threatens To Shut Off Ukraine Gas
Mike (Mish) Shedlock | Feb 25, 2015 12:44AM ET
Last year, Russia shut off gas deliveries to Ukraine for lack of payment. Most of the flow through Ukraine goes to Europe, but Russia accused Ukraine of siphoning off gas without paying for it.
In December, Ukraine agreed to prepay for gas. The flows resumed, but a major dispute has recently arisen.
Gas Dispute
- Monday, Ukraine complained it has not received gas it paid for.
- Yesterday, Russia complains it has not been paid for gas delivered.
I have called in the meter maid to investigate these claims and counterclaims.
Shutoff in Two Days
RT reports Gazprom Threatens to Cut Supplies to Ukraine .
Russian natural-gas giant Gazprom is threatening to cut off supplies to Ukraine entirely as early as February 26, a move the Russian company says could result in a suspension of supplies to Europe.The European Commission helped broker a deal last October between Moscow and Kiev that was meant to ensure Ukraine received gas during the winter and that supplies of Russian gas to Europe through Ukraine were not disrupted.
Under that agreement, Ukraine promised to pay off arrears for gas received and to prepay for future gas shipments, while Gazprom agreed to lower the price. That deal is valid until the end of March.
Gazprom said it is supplying gas to the parts of the Donetsk and Luhansk regions in eastern Ukraine that are controlled by pro-Russian separatists -- since Kiev stopped supplying them.
Gazprom said it considers those two regions as being part of the contract with Naftogaz for supplies to Ukraine though the Russian company conceded that Naftogaz "does not take these volumes into account, as a result...estimates of how much prepaid gas has been supplied differ."
Lovely Rita Meter Maid
While pondering the claims and counterclaims, I offer this musical tribute.
I am pleased to note that "Lovely Rita" just pinged me with a rhetorical question as well as her official opinion.
Rita asks "If pipelines to the Eastern regions are broken, how is it that Russia can use them, but not Ukraine?"
Rita says "It's pretty easy to see what has happened. One does not even need a meter. Ukraine is broke and does not want to pay for gas delivered to Eastern Ukraine."
Ukraine Bankrupt
For more on the plight of Ukraine and its budget woes, please see Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.