Russia turns down the gas after Ukraine rejects price hike plan
forbes/afx: Russia began lowering the pressure of natural gas entering Ukraine's pipeline system, a spokesman for the Gazprom energy company said, giving assurances that supplies to the rest of Europe were not at risk.
'We have been forced to start the operation to lower the pressure in Ukraine's gas pipeline system,' state-controlled Gazprom's spokesman Sergei Kupriyanov told Agence France-Presse after a deadline expired for Kiev to agree to a steep gas price increase as from April.
Russia and Ukraine have been locked in a bitter gas price dispute for months, sparking concerns in European Union states that depend heavily on Russian energy supplies.
'Export gas will be delivered in its totality,' Kupriyanov continued, referring to deliveries to the rest of Europe.
'We were ready to come to an agreement with the Ukrainian people... Our offer was rejected,' Kupriyanov said.
Around one-fifth of Europe's gas supply comes from Russia via Ukraine and is carried into Ukraine by a single main trunk pipeline from Russia that then branches off into the country's pipeline network and European routes further west.
Ukrainian Prime Minister Yury Yekhanurov said last week that if Moscow stopped supplying Kiev then his country of 48 mln people would have the right to take 15 pct of the gas transiting through its territory to Western Europe.
There was no immediate official comment from the Ukrainian government after Gazprom's announcement of the pressure reduction.
Kiev has so far been paying 50 usd per 1,000 cubic meters of natural gas from Russia. Gazprom, wants 230 usd, arguing that Soviet-era tariffs no longer apply and the price needs to be aligned with market rates.
Kiev has said it can pay more over a transitional period but Gazprom said it would shut down Ukraine's gas supply from January 1 unless Kiev agreed to the higher price immediately.
Ukraine depends on Russia for around one-third of its natural gas supplies, importing some 25 bln cubic meters per year, and many ordinary Ukrainians have expressed alarm despite official assurances that the country has enough reserves to last the winter. As the row with Russia deepened, Kiev signed an agreement last week with the Central Asian state of Turkmenistan, which has some of the largest gas reserves in the world, to supply 40 bln cubic meters of gas to Ukraine at 50 usd per 1,000 cubic meters. Link
db: Why the shock that Russia seeks to use it's energy supplier clout as an extension of foreign policy? Given that the Ukraine has bravely set upon an 'independent' [US/NATO/EU] course free from Russian control/influence one would have thought that the opportunity to pay a market price for gas would provoke spontaneous celebrations - street parties, pop concerts etc..
'We have been forced to start the operation to lower the pressure in Ukraine's gas pipeline system,' state-controlled Gazprom's spokesman Sergei Kupriyanov told Agence France-Presse after a deadline expired for Kiev to agree to a steep gas price increase as from April.
Russia and Ukraine have been locked in a bitter gas price dispute for months, sparking concerns in European Union states that depend heavily on Russian energy supplies.
'Export gas will be delivered in its totality,' Kupriyanov continued, referring to deliveries to the rest of Europe.
'We were ready to come to an agreement with the Ukrainian people... Our offer was rejected,' Kupriyanov said.
Around one-fifth of Europe's gas supply comes from Russia via Ukraine and is carried into Ukraine by a single main trunk pipeline from Russia that then branches off into the country's pipeline network and European routes further west.
Ukrainian Prime Minister Yury Yekhanurov said last week that if Moscow stopped supplying Kiev then his country of 48 mln people would have the right to take 15 pct of the gas transiting through its territory to Western Europe.
There was no immediate official comment from the Ukrainian government after Gazprom's announcement of the pressure reduction.
Kiev has so far been paying 50 usd per 1,000 cubic meters of natural gas from Russia. Gazprom, wants 230 usd, arguing that Soviet-era tariffs no longer apply and the price needs to be aligned with market rates.
Kiev has said it can pay more over a transitional period but Gazprom said it would shut down Ukraine's gas supply from January 1 unless Kiev agreed to the higher price immediately.
Ukraine depends on Russia for around one-third of its natural gas supplies, importing some 25 bln cubic meters per year, and many ordinary Ukrainians have expressed alarm despite official assurances that the country has enough reserves to last the winter. As the row with Russia deepened, Kiev signed an agreement last week with the Central Asian state of Turkmenistan, which has some of the largest gas reserves in the world, to supply 40 bln cubic meters of gas to Ukraine at 50 usd per 1,000 cubic meters. Link
db: Why the shock that Russia seeks to use it's energy supplier clout as an extension of foreign policy? Given that the Ukraine has bravely set upon an 'independent' [US/NATO/EU] course free from Russian control/influence one would have thought that the opportunity to pay a market price for gas would provoke spontaneous celebrations - street parties, pop concerts etc..
posted by exoplanet at 12:00 PM
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