Skip to comments.Risk of 'gas war' grows as Ukraine halts payments to Russia
Posted on 04/12/2014 6:59:25 AM PDT by icwhatudo
aid on Saturday it was suspending payments to Russia for deliveries of gas, ratcheting up the tension in a standoff that has the potential to leave European Union states cut off from the Russian gas supplies on which they depend.
In eastern Ukraine, where groups of pro-Russian activists have been emboldened by the Kremlin's annexation of the Crimean Peninsula, a band of armed men in mismatched camouflage outfits seized a police station in the town of Slaviansk.
Russia and Ukraine have been locked in confrontation since protests in Kiev forced the Moscow-backed president from office, and the Kremlin sent troops into Crimea. Now, the gas dispute threatens to spread the impact across Europe.
A large proportion of the natural gas which EU states buy from Russia is pumped via Ukrainian territory, so if Russia makes good on a threat to cut off Ukraine for non-payment of its bills, customers further west will have supplies disrupted.
(Excerpt) Read more at baltimoresun.com ...
Criticize those who build barricades in the streets and take over public buildings to overthrow the new interim government.
Stop paying your bills.
In a sane world this would serve as a warning against becoming a debtor nation.
“Gas war?” Sounds like a classic two-punch fight: The heavyweight (Russia) hits the challenger, and the challenger hits the floor.
What kind of fight can you have when the supplier decides to shut off the gas? Is the Ukraine going to invade Russia and turn on the valves?
Governments the world over permit gas companies to turn off their supplies to homeowners who refuse to pay their gas bills.
Many countries, including the U.S., have social-safety nets to help hardship cases if their gas is turned off.
So how should the U.S. government react if the Big Russian Gas Company cuts off its supplies to the Big Ukrainian Homeowner who is capable of both borrowing on financial markets and instituting fiscal discipline to pay its bills?
The U.S. government hasn’t even bailed out Detroit, which has already gone bankrupt, so how in good conscience can it send taxpayer funds to prop of the Ukraine?
And Europe is still trying to protect Greece from the wolves at its door, so it’s also in no position to serve as a financial safety net for its Ukrainian neighbor. In fact, if Russia turns off Ukraine’s gas pipelines, Europe will also be out of gas.
So Ukraine is alone to face the Russian bear. But the country wanted to be independent from Russia. It just didn’t do a good job of it during the twenty years it had to assert itself.
Obama already gave the new crooked interim government of Ukraine a lot of financial aid (a few weeks ago). I guess instead of paying their bills with our money they're doing something else (offshore bank accounts I can assume).
Since Obama has unlimited funds, I guess he can just keep sending them more and more.
I can remember when your two cents worth could even buy some candy. Today your two cents worth is valueless even Canada has stopped the coin.
The EU is going to “help” the Ukraine pay for their gas.
Ukraine is broke. But instead of attending to urgent political and economic reforms to stave off national disintegration - the current regime thinks killing the country will somehow bring Russia to its knees. On what planet?
This cannot end well.
~So Ukraine is alone to face the Russian bear. But the country wanted to be independent from Russia. It just didnt do a good job of it during the twenty years it had to assert itself.~
I have no idea what exactly did they want. Ukraine ‘independent’ from Russia makes just as much sense as Cuba ‘independent’ from US at the time.
All the real Ukrainian economy which includes quite a hightec manufacturing is tied with Russia.
Let alone free gas and jobs for millions Ukrainian nationals who can’t find any at home.
And I really wonder what do they have for EU to offer.
Maybe some coal, but wait...Europe is green now. Wheat? But what about a subsidized French farmers who have better leverage with Brussels. Would Germans buy Ukrainian motor vehicles or parts for Russian jets and spacecraft? Too many questions and no answers.
Maybe the Ukrainians should ask the Greeks how being a part of the EU worked out for them.
True. They also should have spent their last two decades to get rid of communism as hard as the rest of E Europe or at least Russia did.
And now they are opting for ‘better’ model of communism.
Won’t work for them, even in a short run.