Gazprom seeks to halt Ukraine gas contracts as dispute escalates

Politically motivated decision in Stockholm (Russian GAZPROM has to pay NAFTOGAZ (Ukraine) 2.5 billion!) resulted in that Gazprom stopped all the contracts with Ukraine and now Ukraine has to buy gaz from Europe at higher prices. What a bunch of idiots are sitting in Kiev now! They were unhappy to buy cheap gas from "agressor" Russia always complaining that it is not cheap enough, now they made everything to buy expensive gas from their "friends" in Europe. The decision in Stokholm was motivated by the fact that Ukranian economics is in poor state, but why Ukranian problems in economics should be solved at Russia's expense? Ukraine has good "friends" now- US. So let them pay for the gas for Ukraine.

https://www.reuters.com/article/us-...-contracts-as-dispute-escalates-idUSKCN1GE2DW

https://www.kyivpost.com/ukraine-po...ports-europe-4-mcm-29-mcm-day-due-crisis.html

 

Gazprom was in a difficult position. It needed either to secure the old soviet pipe or to build another route to be able for such an action. Now it is possible. The plan was easy. Russia sells gas to Ukraine at a low price and Ukraine resells the gas to EU. So Russia runs its gas business at a loss and the profit goes to the politicians who act against Russia.
The decision in Stockholm used double standards remaining however in a legal sentence. They cancelled the obligations of Ukraine because of the changed economical situation but haven't changed the obligations of Gasprom due to the same (!) change. Thus the activity of Gasprom sets the major group of anti-Russian politicians into the trap planned for Kremlin. Now they have to pay more for the gas and are naturally forced to change their initial plan.
The game is far from over.

 

I think it was important for the court in Stockholm to stop the use of gas as a Kremlin tool, there's too many people dependant on gas especially during winter. Gazprom has a shocking service history imo, it just cuts the gas when the slightest conflict arise, clearly a political tool.
Gazprom may want to halt the contract because of $4.6 billion in transit fees... I'm not sure how the rate of $238.55 cubic meters per 1,000 compares with what the rest of Europe is paying Gazprom for gas. Ukraine may well be better off just buying it from Europe at a higher price...over $250 some are reporting... certainly dealing directly with Gazprom have been disastrous.

 

The price difference is much more. It ranges from about 200 to about 400 (with peaks of 500) USD. The transportation costs (including transit) increases the price. With north Stream it goes directly to Germany at a shortest possible way from the deposit. While Ukraine needs to use its storage capacities (old gas deposits) to accumulate it throughout the year and to increase the delivery in winters. This infrastructure needs to be run and increases the costs. At the same time Gazprom is forced to subsidize Ukrainian economy and sell gas in quantities which will then be resold to EU at a much higher price.

At the moment Ukraine buys gas from Europe and if before that EU traded the surplus of gas (it was the same Russian gas which was physically inside the pipe and going in the direction of EU. So it was only the paperwork between the EU and Ukraine. Now they have to invest money and change the direction, which is much more difficult and costly, so Ukraine gets European gas at a price 4-5 times more expensive than it would have been available from Gazprom.

 

very interesting Y thank you....Nord Stream 2 is a huge threat to Ukraine... I noticed the Poland/US is asking for it to fall under the sanctions bill

https://www.reuters.com/article/us-...anctions-to-cover-nord-stream-2-idUSKBN1FI134

They do predict a price war, with supplies of LNG from the US and even Australia set to increase even with the process of liquifying, shipping then re-gassing. Also noticed below Germany biggest buyer from Gazprom and after Nord Stream set to be biggest distributer of Gazprom gas for Europe. Of course this issue sits at the heart of much of the tension between Russia and the US and Germany and the US.
https://www.ft.com/content/352f4cac-6c7a-11e7-b9c7-15af748b60d0

 

You're flipping and making the perpetrator the victim, and the victim the perpetrator.

The contract between Gazprom and Ukraine stipulated that if they do not pay their bill on time, the cost of gas will go up - and that's exactly what happened. What you're saying is that it didn't matter if Ukraine paid its bills or not, Gasprom should still have supplied them - even though all the money from the resale of the gas to the EU ended up in the pockets of the Ukrainian mafia.

Russia was left with no choice but to stop the flow of gas, and Germany to make sure it wouldn't be subject to Ukrainian blackmail again, built it's own North Stream from Russia and is now enlarging it as well. What is infuriating, is that while Germany can import gas directly from Russia and bypass Ukraine, Bulgaria couldn't.

When Bulgaria partnered with Gazprom to build Southstream, which would have given it over a billion dollars in transit fees to Central and Southern Europe, they were pressured to stop it unless Russia agreed to certain EU terms.

Russia refused and decided to have its pipelines go through Turkey and then stop at the Greek EU border. From then on the transit would be up to the EU. Bulgaria was left in the cold, thanks to pressure from Washington. Not only did 10,000 men who were working on the pipeline lose their jobs, but they lost over one billion a year. It stands to reason the government was kicked out.

 

As long as Russia can keep the Ruble at a low value, (thanks to American sanctions), it can undersell others. This is why Moscow has overtaken the US in grain, arms and gas. Russia doesn't only ship its wheat from Vladivostok, it also has facilities for LNG, which by the way was delivered to the US and to the EU under the pretense it was US gas.

I always suspected the provocations towards N. Korea by Trump, was because of its proximity to the port of Vladisvostok - which is Russia's life line. The city is less than 100 miles from the N. Korean border. If we look at Eastern Europe and how the US has packed it with missiles aimed at Russia, and how they are now being taught to use nuclear weapons, then it stands to reason Washington would like nothing more than to have those missiles in N. Korea aimed at Vladisvostok.

 

Ukraine has had to pay an arm (Donbas) and a leg (Crimea) for trusting aggressor Russia.

 

Oh, horse manure.

Ukraine is where it is because of a US-sponsored coup. It is an incomplete coup, however, with Crimea being able to escape the crazies and Donbas still struggling.

So that's what Ukraine gets for selling itself to the US .... a rump Ukraine. Deal with it.

Nordstream will be completed. The transit contract for Ukraine expires next year and won't be renewed.

C'est la vie!!

 

Just another political tool if the moskalis,lol, oh so , Gazprom owes Ukraine 2.5 bln? So they decide to cut the gas? Obviously russkis need some lessons in economics. That's the trouble if relying on "unreliable" source if energy. Someone gets elected that the vatniks don't like....let's shut some gas moskalis are one of a kind!!).

 

Anti-Russian pigs have to buy gas for Ukraine!

 

I think Ukrainians would be a lot less happy today had it been as bad as all that. As it is, we know they were removing Putin's stooge. Russia had been manipulating their politics and elections, and Maidan represented a violent end to that. There certainly has been no "selling itself to the US," rather just working up the gumption to stand up to the Russian abuser & rapist.

 

According to some of these "kremlin" cheerleaders, anyone/thing disagreeing with their philosophy is somehow "selling" themselves to the devil which is the US!
They can't seem to see, just about everyone they deal with couldn't get away quick enough from this "russki Mir" twisted vision of theirs).

 

Have you done a happiness poll for Ukraine? By any measure, Ukraine is in terrible shape ..... far worse than with Yanukovich.

 

"Fvck the EU. Yats is our guy" pretty much says it all.

Ukraine (what's left of it) is nothing more than a tool of agitation against Russia. That's all it's good for. The best of Ukraine is not in Ukraine anymore.

Wait for next year when the transit contract expires. Ukraine will finally be completely free of Russia!! Good times ahead!!

Edited to add: Woo-hoo!! Hot diggety damn!!

 

Kind of like Russia in the nineties and naughties and even today..

 

We don't have reason to "agitate" Russia. But they certainly love to agitate us. Well, Putin does. Makes him feel important and powerful, and helps feed his fantasy of restoring the USSR.

 

Are you kidding? If you do not pay your gas utilities at first they will cut off your farm from the gas supply and then they will bring you to court and bankrupt you. Ukraine did not pay fully the debts for the supplied gas, therefore why Gazprom should be responsible for that?

 

If US has no reasons to agitate Russia, why there is so much US involvement in politics in the former USSR republics?

 

Like which vis?? Baltics? They voted and ratified to be in Nato&EU, something you russkis have trouble with, as goes for ukraine, Kazakhstan, Moldova. no one wants "russki Mir" politics.EU seems more attractive to them....isn't that why you're there....taking Merkel money? You don't have much of a leg to stand on in regards to that argument veesko.

 

Seems to me we aren't doing enough in those countries, given how they're treated. But we've seen what happens if we get involved at all - Putin stirs up trouble and sends in the military.

 

Like Georgia, like Ukraine, and many others. Your judgememts are naive, zoom. One country need not be in the EU in order that its people could work in the EU. If you are so worried about Ukraine, why do not you pay to your lovely Pornoshenko account every month some money to compensate for the difference in gas prices for Ukraine?

 

I think it would be smart from US side if it keeps away from the geopolitical sphere of interests of Russia, which includes all the countries that border Russia, like Ukraine, Belarus etc

 

Since 1973 Russia (USSR) delivered gas without any interruptions to Germany except the problems with the Ukraine. North Stream backed up this good trading relationship and North Stream 2 will make it even more secure. Why should I subsidize as a German consument the Polish and Ukrainian budget and being in danger to be taken as a hostage in their disputes with Russia? Germany just saved the Ukrainians by emptying our security gas depots (25 billion cubic meter), just 28% left.

If anyone is unhappy with Russian gas he's free to buy LNG.

 

Nonsense. Russia doesn't somehow own these countries. This is something the Russians need to learn.