Posted on 05/08/2014 6:29:52 PM PDT by tcrlaf
Russia ordered crisis-hit Ukraine on Thursday to pay upfront for all its future natural gas deliveries because of billions of dollars in outstanding debts.
The largely-anticipated announcement imperils supplies to a large swathe of the European Union because nearly 15 percent of all Russian gas consumed by the 28-nation bloc transits through Ukraine.
Ukraine has refused to meet the deadline in protest over Russia's decision to nearly double the price it charges its neighbour for gas imports following the February overthrow of a Kremlin-backed regime in Kiev.
(Excerpt) Read more at globalpost.com ...
M&M Enterprises: Milo says MIF for Ukraine
Next step would be Ukraine say it’s half the market price is ‘unfair’ and refuses to pay it at all, Russia cuts supply and Ukraine is stealing it’s ‘fair share’ from Russian export bound Europe via pipelines on it’s territory.
Then EU blames Russia for failure to resolve.
I have no problem with pro-Western Ukraine if not for the one thing. Obama and EU wants their political control over Ukraine to have a leverage over Russia, but at the same time they want Russia to support Ukraine.
Why won’t EU or Obama pay for Ukrainian gas and constantly bailout Ukrainian industries looted by Ukrainian politicians?
It would be fair to demand Russian navy out of Ukraine in this case.
On the other hand Russia would tax the extra revenue from Gazprom, earned via free trade like that to build a warm water port in Cuba or Venezuela.
What do you think about it?
“Putin/Gazprom just laid down a “red-Line” to Ukraine.”
No, Russia owes the Ukraine upwards of $15 Billion in overpayments for the natural gas, more money for the breach of contract when Russia contracted for lower rates in exchange for basing privileges in the Crimea, and even more money in ongoing damages and punitive damages for the occupation and looting of the Ukraine’s Crimean territories.
Ukraine overpays almost USD 15 billion to Gazprom - expert
Ukrinform ^ | 08.05.2014 16:08 | Ukrinform
KYIV, May 8 /Ukrinform/. The Ukrainian side overpaid almost USD 15 billion over duration of the gas contract between Gazprom and Naftogaz of Ukraine.
When I was first out of college my apartment was heated by an oil furnace. I was on a “budget” plan, and of course I did not budget well and I fell behind. After 30 days I had to pay cash up front for my oil for six months before I could get any credit.
In New England you need to make sure your oil was delivered regularly. It gets awful cold.
I learned if you don’t pay your bills life can get very expensive.
They are demanding advance payment as Ukraine tends to be late on its bills.
Stop making sense! It sounds so capitalist to him /s
Yeah, a neutral headline would have read, “Gazprom declines to extend further credit to Ukraine.”
Evidently, the Ukraine already paid its bill for the Russian natural gas, but Russia is cheating in an effort to destabilize the Ukrainian economy and political affairs. News reports indicate the Ukraine is taking the dispute to arbitration and court with a case strong enough to very likely win a court decision against Russia that Russia will then ignore. See:
Ukraine overpays almost USD 15 billion to Gazprom - expert
Ukrinform ^ | 08.05.2014 16:08 | Ukrinform
KYIV, May 8 /Ukrinform/. The Ukrainian side overpaid almost USD 15 billion over duration of the gas contract between Gazprom and Naftogaz of Ukraine.
Then there are the damages Russia owes to the Ukraine for Russia’s breach of contract. Russia contracted to charge certain lower rates for deliveries of certain quantities of natural gas to the Ukraine in exchange for the privilege of using Ukrainian naval ports and military bases in the Crimea for a limited period of time. Russia abrogated that contract with its invasion and conquest of the Crimea, termination of the agreement, and theft of the Crimea. Also do not forget that the Ukraine has the right to claim actual damages and punitive damages from Russia for the occupation and looting of the Ukraine’s territories in the Crimea.
If anyone owes anything to anyone, Russia is liable for ruinous criminal damage to the Ukraine for breach of contract, criminal theft, criminal breach of the peace, and criminal breaches of human rights.
“They are demanding advance payment as Ukraine tends to be late on its bills.”
That is a lie and the further dissemination of Russian false propaganda. Russia has been overcharging the Ukraine and failed to fulfill its contractual obligation to make the required deliveries called for in the contract. Russia owes the Ukraine upwards of $15 billion in overpayments, and not the other way around.
Russia could demand pre-payment for future gas deliveries in gold.
Russia could charge a surtax on fuel deliveries to EU member states that could be used to provide gas at no cost to Ukraine. Letting them put their money where their mouths are...I wonder what they would say about such a thing? I think Ukraine would love the idea... Everyone wins! Putin gets more $$, the EU gets the satisfaction of providing free fuel to the hapless Ukrainians, and the IMF has to shell out less money (this means the US taxpayer gets relief).
Russia controls the entire situation because they control the fuel. They can demand payment in gold. They can add a surcharge to pay for Ukrainian fuel and to pay down Ukraine’s past-due fuel debt. They could even add a surcharge to pay for the cost of any sanctions taken against them. The EU can pay for the fuel and the surcharges in gold or go without fuel or ship in fuel at much higher prices from another provider.
One thing is certain, if Ukraine/EU get fuel from other providers it will end up being the US taxpayer that will pay the entire additional cost.
The only way that Russia comes out the loser in any of this is if the US taxpayer is forced to pay the enormous cost that would be incurred to provide fuel for the EU and Ukraine. Russia is better able to absorb the loss of fuel revenue from sales to the EU than the US is able to pay the cost if they undertake to ship fuel by sea to The EU...the cost for the US would be crippling...and no one else would be willing to absorb any part of such a cost, the US will foot the entire bill alone.
It would make me very happy if someone could detail a plan of action that would force Russia to provide gas if they do not wish to do so. The EU has allowed themselves to be put in such a miserable position. I sincerely hope the US taxpayer does not end up the big loser in this gas war.
Ukraine overpays almost USD 15 billion to Gazprom - expert
KYIV, May 8 /Ukrinform/. The Ukrainian side overpaid almost USD 15 billion over duration of the gas contract between Gazprom and Naftogaz of Ukraine.
This was announced by director of energy programs of the Centre Nomos Mykhailo Honchar at a press conference in Kyiv, Ukrinform reports.
“On the gas contract with Gazprom, Ukraine overpaid USD 14-15 billion,” Honchar said.
The expert said that considering the European market prices for gas, at which Gazprom is selling hydrocarbons, Ukraine was paying more to the provider throughout the whole period of the gas contract.
“Even the price of USD 268.5 per 1,000 cubic meters, which Russia presented as preferential for Ukraine, was at that time higher than the price on the spot market in Europe,” the expert said.
He also noted that Gazprom under the existing contract had to transport through Ukraine annually to 112 billion cubic meters of gas, which it did not observe (last year, 87 billion cubic meters were transported - Ed.), due to this Ukraine has suffered losses of about USD 5 billion.
“For the first time, not a backstage dispute will be resolved in relations between Ukraine and Russia, but openly at the Stockholm Chamber of Commerce, and Ukraine has all chances to win,” Mykhailo Honchar noted.
Note, Russia breached and then abrogated its contract with the Ukraine which exchanged the privilege of using naval and military bases in the Crimea for deliveries of natural gas at prices substantially lower than the spot market.
Have you ever read this contract?
“Have you ever read this contract?”
There were multiple agreements and associated contracts, not just one contract. Putin’s regime recently passed a Russian law authorizing the Russian Government to terminate a number of those agreements and the associated contracts. Russia is not trying to impose a new contract without the Ukraine providing an agreement to do so.
Gee. March 19 2014 sign up and already trolling for Putin full time or did something happen to the previous account?
So you believe everything spat out by the Russian KGB propaganda machine but you question someone outed the Putin lie machine?
The EU can go freeze in the dark!!!
OK, I'm interested.
Is there a non-Ukrainian source for that contention?
Sorry there was no link or URL that I could copy from that.
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