Skip to comments.Europe faces energy crisis as Vladimir Putin cuts Russian gas supply...
Posted on 01/06/2009 9:11:27 AM PST by TaraP
Europe has been plunged into an energy crisis after Vladimir Putin ordered Russia's state-run gas company to cut supplies by 20 per cent... As temperatures dropped below zero across much of Europe, the Russian prime minister instructed the head of Gazprom: "Cut it - starting today." The cut was ordered to punish neighbouring Ukraine, which Russia accuses of topping up its own gas supply by siphoning off energy meant for European consumers and sent through its pipelines. without paying Russia.
(Excerpt) Read more at telegraph.co.uk ...
Gullibility, thy name is Europe. It must be in their DNA.
ANY BETS THAT POOTIE IS GETTIN MORE POPULAR WITH THE INTERNATIONAL INVESTMENT CROWD?
2008, Russias Financial Annus Horribilis
Russias RTS dollar-indexed stock market ended 2008 as the worst performing major equities market on the planet, down a breathtaking 72% over the course of the year. At the start of the year, Russias shamelessly profiteering stock brokerage firms had predicted a 50% gain with a year-end value of 3,000. The market actual closed out 2008 well below 650, less than a quarter of the value they had misled their customers into considering.
God Bless America. God, help these innocent people.
So, what is the next "sky is falling" issue I can comment on?
Vladimir Putin - the most popular Russian leader since Stalin. Figures...
Actually, Ukraine said it would take what it needed from the pipeline if they couldn't come to a price agreement.
The answer is, for everyone involved, "diversify". If you are Russia, you need to find routes to market that don't cross through Ukraine, so that Kiev can't play games with the pipeline. If you're Ukraine, you have to find other sources of gas so that Russia can't play games with your gas supply. Paying full market price is the price of independence.
Hey you with the woodburning stove - don't you know that harshly contributes to global warming (TM)?
Let's see .... Spring 2009. Russia invades Ukraine.
Say, I’d like to run a pipeline through your yard and then charge you full price for the gas. Never mind that I am willing to pay you nothing for the use of your property... Russia is not asking for “market” price because they know if they turn off the gas they can get more.
Thats actually what is missing from these articles, the details of the agreements between Ukraine and Gazprom.
How much is Ukraine paying for gas, how much are her European neighbors paying, and how much does Gazprom pay for the use of the pipeline.
Ukraine gets a substantial discount compared to her neighbors. Thats part of the dispute, Russia wants to charge Ukraine the same as her neighbors. And my understanding is that Ukraine takes a percentage of the gas in payment for use of the pipeline and then in addition buys a bit more. Part of the dispute is that Russia claims that Ukraine is taking more than what the agreement allows, that in addition a certain percentage of the gas goes missing.
If you’ve got a link with details of the agreement, or details about what Gazprom charges the rest of Europe, I’d appreciate it. Most articles are pretty confusing on that point.