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Ukraine gas row hits EU supplies
BBC News ^ | 1/01/2006

Posted on 01/01/2006 10:08:49 AM PST by SpikeMike

EU nations have started to feel the impact of Russia's axeing of gas supplies to Ukraine, as Moscow accused Kiev of stealing EU supplies.

Hungary and Poland were the first EU states to have supplies disrupted.

Russia's state-run firm Gazprom cut Ukrainian supplies from the pipelines on Sunday after talks failed to solve a politically-charged price row.

Exports to the EU are carried through the same pipes, and Gazprom now says Kiev is stealing some of that gas.

"There is information that Ukraine has begun siphoning off Russian gas that is designated for European users," Gazprom spokesman Sergei Kuprianov was quoted as saying some eight hours after the Ukrainian supply was cut.

Earlier, Ukraine's own state-run gas firm accused Russia of jeopardising Western European supplies.

"Gas is not flowing at all through some transit routes, which can lead to a fall in pressure in all the pipelines and limit the overall supply of gas to Ukraine and Europe," said Eduard Zaniuk, a spokesman for Ukrainian state-run gas giant Naftogaz.

"Naftogaz declares such actions unacceptable because they endanger gas deliveries to Europe."

Ukraine's prime minister has said his country has the right to take 15% of the remaining supplies in the pipelines as payment for transporting the gas to Western Europe.

Europe's Energy Commissioner confirmed the crisis was causing concern, despite previous Russian assurances that EU supplies would not be hit.

"The dispute definitely does not help us and keeps us worried because 20% of our gas supplies go through this route, so if there is a dispute so there are eventualities that could come out," Andris Piebalgs told the BBC.

"So we are not too certain if everything will happen as both sides have promised us."

EU governments are convening a meeting of their gas industry experts in Brussels on 4 January to discuss the crisis.

Some EU countries rely particularly heavily on Russian gas. Germany, for example, gets about 30% of its gas supplies through Ukraine.

Polish concern

In Hungary, gas firm MOL said its supplies from Russia were already down 25%, Reuters news agency reported.

The firm had ordered big consumers to switch to oil from Monday wherever possible, the agency said.

Earlier, Polish gas company PGNiG reported that the amount of gas entering its pipeline system from Ukraine was also down, according to the AFP news agency.

Kiev continues to insist that the loss of Russian supplies - which amount to 30% of its own national consumption - will not hit ordinary Ukrainian consumers during the harsh winter.

However, it has warned that supplies to industry may be affected.

The Ukrainian crisis erupted after Gazprom announced it was quadrupling the price of its gas supplies from $50 to $230 per 1,000 cubic metres.

Ukraine rejected the increase, saying it was prepared to pay a higher price but not on that scale.

Kiev has said it is currently prepared to pay no more than $80 per 1,000 cubic metres of gas.

Many Ukrainians believe Russia is punishing them for their Orange Revolution and the election of Western-leaning President Viktor Yushchenko.

Other countries which remain in Russia's sphere of influence continue to receive gas at below-market prices.


TOPICS: Business/Economy; Extended News; Foreign Affairs; News/Current Events; Russia
KEYWORDS: easterneurope; energy; eu; europe; gas; hungary; naturalgas; poland; romania; row; russia; ukraine
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1 posted on 01/01/2006 10:08:52 AM PST by SpikeMike
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To: SpikeMike
Ukraine wants membership in the EU, which Russia opposes.

Ukraine provides gas transport from Russia to the EU, so Russia cuts off the supply to show the EU where their gas comes from.

The EU will probably squash Ukraine's bid to join the EU in order to keep the gas flowing.

Do I get this right?

2 posted on 01/01/2006 10:14:35 AM PST by The KG9 Kid (Semper Fi!)
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To: The KG9 Kid

Heres the full Story - Russia is reneging on a contract that has set prices for Ukraine until 2009 - why is,nt this being reported?




Mirror Weekly interviewed PM Yekhanurov.

Excerpts

Now the main thing. Will there be gas in Ukraine since January 1, 2006?

- I believe that the contract will be carried out and the gas will be supplied. But… we will still be conducting nervous negotiations.

- You mean the gas will be supplied despite the unfinished bargaining?

- As a matter of fact there is a contract between Naftogas of Ukraine and Gasprom of Russia on volume and conditions of transit of Russian natural gas through the territory of Ukraine for the period between 2003 and 2013. It is currently in effect. I cannot imagine how a public company bound by contract obligations can refuse to fulfill them. I asked the deputy head of Gasprom, Oleksandr Riazanov, during our negotiations in Moscow on December 19 in the presence of the head of the Russian Cabinet Mikhail Fradkov: “Is the contract effective?” And he said: “Yes.”

- Then why do the Russians say that they will stop contract supplies of gas to Ukraine on January 1, 2006?

- One can always find a reason to make a statement. But in article 14 of this contract it is clearly stated that: “This contract comes in effect on January 1, 2003… It remains effective until 10 am on January 1, 2014.” And one more thing: “During the period between 2005 and 2009 the Customer (Gasprom) will sell annually natural gas at the price of 50 US dollars for 1000 cubic meters, which is not subject to change by the parties, from the gas transportation services of Russian natural gas through the territory of Ukraine to ensure the gas balance of Ukraine.”


3 posted on 01/01/2006 10:19:56 AM PST by spanalot
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To: The KG9 Kid
"EU governments are convening a meeting of their gas industry experts in Brussels on 4 January to discuss the crisis."

And they will talk and talk and, you guessed it, talk.

Another rational government might conclude that they should choose their friends with care (conversely, be very careful who you trash to score points with the other Eurowiennes).

Very cold here in Munich tonight. Damn JWB and his global warming!!
4 posted on 01/01/2006 10:19:59 AM PST by lowbuck (The Blue Card (US Passport). . . Don't leave home without it!)
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To: SpikeMike; lizol; Vorthax; Polak z Polski; Grzegorz 246; Lukasz; JoAnka; warsaw44; ...
Ukraine's prime minister has said his country has the right to take 15% of the remaining supplies in the pipelines

It means that EU will be getting 85% of what it should get. This problem can be easily solved, European countries need to buy 18% more that they need and everyone will be happy including orange friends.

5 posted on 01/01/2006 10:23:58 AM PST by A. Pole (If the lettuce cutters were paid $10 more per hour, the lettuce head would cost FIVE CENTS more!)
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To: A. Pole

Of course Ukraine is right - Russia is reneging on a contracted price that is in effect until 2009


6 posted on 01/01/2006 10:28:40 AM PST by spanalot
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To: spanalot

Russia's plan is to use its resources as a political weapon against the EU.


7 posted on 01/01/2006 10:44:00 AM PST by MARKUSPRIME
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To: spanalot

And one more thing: “During the period between 2005 and 2009 the Customer (Gasprom) will sell annually natural gas at the price of 50 US dollars for 1000 cubic meters, which is not subject to change by the parties, from the gas transportation services of Russian natural gas through the territory of Ukraine to ensure the gas balance of Ukraine.”==

Lie through ommition. Ekhanurov carefully forgot to mention other clause of same contract. The prices and volumes of deliveries has to be submitted EACH year.
FOr 2005 all was submitted and delivered. For 2006 Ukraine refuses to sign the protocol.

Spanalot is it right to lie here? You may go to ukranian forums and so it there.


8 posted on 01/01/2006 10:46:51 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: MARKUSPRIME

Russia's plan is to use its resources as a political weapon against the EU.==

Russia's paln to get the right price for her products. To stop susidies for enemy states.


9 posted on 01/01/2006 10:47:58 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: spanalot; sergey1973; Lukasz; All

“This situation is becoming unstable and dangerous.”

Dzieki


10 posted on 01/01/2006 10:59:23 AM PST by anonymoussierra (Happy New Year "His Majesty blesses you.")
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To: RusIvan

So a democratic Ukraine is an enemy state? To whom the authoritarian government of Putin and the state controlled Gazprom? Sounds more and more like the way the communist chinese government operates.


11 posted on 01/01/2006 11:20:32 AM PST by MARKUSPRIME
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To: RusIvan
Lie through omission. Ekhanurov carefully forgot to mention other clause of same contract. The prices and volumes of deliveries has to be submitted EACH year. For 2005 all was submitted and delivered. For 2006 Ukraine refuses to sign the protocol.

"carefully forgot" - a new oxymoron?

12 posted on 01/01/2006 11:25:37 AM PST by A. Pole (If the lettuce cutters were paid $10 more per hour, the lettuce head would cost FIVE CENTS more!)
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Comment #13 Removed by Moderator

To: A. Pole

"carefully forgot" - a new oxymoron?===

:)) I just the direct translation of russian "spetsialno umolchal". I think on russian all the times and translate to-from each thought.


14 posted on 01/01/2006 11:35:19 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: vox_PL

It is Freedom itself, which is the enemy of Russia. If a country wants to be an Independent state, then automatically it becomes an enemy of Russia. Poland is a good prove to it.===

Vox_PL let them be whatever free as anyone. It was Russia who initiated the split of USSR and gave freedom everyone in 1991.

But let them not betray your friends who sponsor you. Let them not steal gas from transit pipe which not belong to them like new "free" goverment of Yuschenko did today whole day. They stole today about 18% of transit gas.

DO YOU THINK IT IS CIVILIZED BEHAIVOIR?


15 posted on 01/01/2006 11:38:58 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: RusIvan
They stole today about 18% of transit gas.

15%, not 18%. EU has to increase the purchase of gas from Russia by 18% if Ukraine steals 15%. 18 is 15% of 118 :)

16 posted on 01/01/2006 11:48:54 AM PST by A. Pole (If the lettuce cutters were paid $10 more per hour, the lettuce head would cost FIVE CENTS more!)
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To: MARKUSPRIME

So a democratic Ukraine is an enemy state? ==

DO you think that "democratic" status gave someone rights to steal transit gas? Or gave someone right to lie to media like prime minister Ekhanurov does all the time?

This behaivoir is enemy behaiovoir. I just call it with out politcorrectness.


17 posted on 01/01/2006 11:51:14 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: RusIvan
DO YOU THINK IT IS CIVILIZED BEHAVIOIR?

Yes. England is a quite civilized country. She was organized by the congenital Norman robbers, became prosperous by robbing Spanish transports from New World, and then made fortune by slave and drug trade (Opium War for example). English did not shrink from starving Irish in the name of free market (they invented this doctrine) or completely exterminating Tasmanian race in name of progress.

18 posted on 01/01/2006 11:54:47 AM PST by A. Pole (If the lettuce cutters were paid $10 more per hour, the lettuce head would cost FIVE CENTS more!)
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To: The KG9 Kid
Vlad Putin allies himself with Islamic scum such as Iran's Ayatollahs. He wants Russia to become a superpower when it comes to energy supplies, same as the Arabs. So Vlad plays hardball. 

The golden rule is:
He who has the gold oil makes the rules.
19 posted on 01/01/2006 11:58:36 AM PST by dennisw ("What one man can do another can do" - The Edge)
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Comment #20 Removed by Moderator


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