Skip to comments.Russia’s Gazprom cuts gas to Ukraine in a new phase of their conflict
Posted on 06/16/2014 12:33:37 PM PDT by Citizen Zed
Russia cut off gas supplies to Ukraine on Monday, a move that will inflict immediate pain on its turbulent neighbor and could eventually affect other gas-dependent European nations.
The cutoff intensifies pressure on Ukraine, which is contending with an increasingly violent pro-Russian insurgency in its east and with economic challenges that were crippling even before the upheaval sparked by the ouster of Kremlin-friendly President Viktor Yanukovych in February.
And if the gas flow is halted for a long time, winter stockpiles across Europe could be depleted, causing problems across the continent, particularly in eastern European countries that depend solely on Russia for their gas.
(Excerpt) Read more at m.washingtonpost.com ...
The reason for the collapse in talks: Kiev wants to pay $268.5 per 1,000 cubic meters of gas - the price it had been offered when Yanukovich was in power - but, in a compromise last week, said it would agree to pay $326 for an interim period until a lasting deal was reached. Moscow had sought to keep the price at the 2009 contract level of $485 per 1,000 cubic meters, but had offered to waive an export duty, bringing down prices by about one-fifth to $385, which brings it broadly into line with what Russia charges other European countries.
In other words, the delta was less than $60, and certainly a “fair” offer to Ukraine considering it is what Europe pays.
Quite obviously not Putin or the EU.
Which would have been fine, I suppose. But then, how much should Ukraine be able to charge for the transit of gas across their country?
Those contracts are not the problem, as I understand it.
But understand selling an easment for a pipeline is hardly claiming ownership of the product.
Nope, they were off by $60.
Moscow had sought to keep the price at the 2009 contract level of $485 per 1,000 cubic meters, but had offered to waive an export duty, bringing down prices by about one-fifth to $385
Russia wants paid for the gas already used, as well.
Interesting as the other articles mentioned an 80% price increase...
That 80% would be the contract price differences, but they have agreed to waive the export duty, bringing down to a 43% increase.
But remember, we are talking about increases from below market rates, even at the time of the previous contract. They were “gifted” a discount to begin with.
They were discounted in exchange for port leases (not needed after the take over of Crimea) and part of the bribe to get Ukraine to give up their nukes (which they unwisely did, trusting promises), and to pay for the Russian use of Ukraine’s pipeline to transport gas.
If Kiev doesn’t like Russia’s price they can find a lower one on the market. Since its a good price, they won’t. They (Ukraine) will just whine and expect Americans to pay their debts.
Where are the free market conservatives on this ? If Ukraine doesn’t like it find a cheaper price, just like any other consumer. If they cant, STFU.
Can you point me to something to learn more about that?
Agreeing to the deal for pre-payment of gas didn’t even involve paying Russia for all of the gas it hadn’t paid for the past few years. All this while the Kiev gov wages war on Russia’s interests in Ukraine.
I know it is rather wiki like, but this seems to sum up the years of bickering fairly well.
They wanted to keep their discounts they should not have picked a fight with Russia by that Kiev coup
Surrendered their sovereignty, rather than kick out the man giving it away. Check.