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Caucasus/Russia/Central Asia
Gazprom: Russia to cut off gas supplies to Ukraine
2008-12-31
Russia's state gas monopoly Gazprom said it will cut off all gas supplies to Ukraine on Thursday morning after the two sides failed to reach a deal.

Gazprom CEO Alexei Miller said the decision was made after Wednesday's talks ended with no agreement on how much Ukraine will pay for natural gas shipments in 2009.

He also said Gazprom has not yet received the $1.5 billion that Ukraine said it transferred to cover its debt, an amount that still falls short of the $2.1 billion that Gazprom says Ukraine owes for gas supplies.

"Gazprom will completely stop supplying gas to Ukrainian consumers at 10 a.m. (2 a.m. EST, 0700GMT) on Jan. 1.," Miller told reporters. "All responsibility for the situation rests on the Ukrainian side."

Gazprom had warned it would cut supplies if Ukraine failed to pay off all of its debt and sign a deal for next year's deliveries by midnight.

Gazprom had insisted that Ukraine pay $418 per 1,000 cubic meters of gas next year, more than double what it paid in 2008. But on Wednesday, Gasprom offered a contract with gas set at $250, which Ukrainian officials said was still too high
Posted by:lotp

#6  NYMEX gas futures (Feb) yesterday was $206 per 1000 m3. Delivery at the German border was $400 and change last week.

The bottom line is if the Russians want to sell gas to W Europe, it must go through Ukraine. The Ukrainians will siphon whatever they need.
Posted by: ed   2008-12-31 20:02  

#5  How, pray tell, do the Russians propose to sell gas to anyone? Look at the map - Poland ain't to thrilled with the bear, and so long as they and Ukraine cooperate, they have a monopsony on the pipelines to Russia's customers. Shouldn't be too hard for them to skim off whatever they need, or deal with the end users for resales.

Russia is trying to buy off the Germans with a pipeline down the baltic, avoiding land transit issues, but that is still a pipedream - so to speak.

Hope Ukraine is developing it's own coal resources.
Posted by: Halliburton - Mysterious Conspiracy Division   2008-12-31 19:52  

#4  Uzbek gas price does not satisfy Tajikistan

“Uztransgaz” company, the main gas supplier to Tajikistan informed on increase of the gas price. According to the source the price was doubled, reported CA-NEWS.

Uzbekistan insists on 300 U.S. dollars per thousand cubic meters of fuel which will be supplied to Tajikistan in 2009, informed Fathiddin Muhsiddinov, General director of the “Tadzhikgaz” State Unitary Enterprise.

International price for gas in 2009 will amount to 260 – 300 U.S. dollars per thousand cubic meters, forecasts Russian Company “Gazprom”, which intends to develop four major gas fields in Tajikistan.

Kyrgyzstan, which received proposal from Uzbekistan to buy Uzbek gas at 300 U.S. dollars, is also not satisfied with the price.
Posted by: john frum   2008-12-31 19:25  

#3  Europe (NATO) needs to prepare for war now.

The NATO British parliamentary representative view that dialogue with Russia is essential suffers from immense historical contradiction.

Either prepare for war with Russia now or be subjugated economically and/or militarily.

Wake up!! RussiaÂ’s attitude to its own brutish activities, on the ground and diplomatically in Georgia, is not just some isolated aberration of Russian stupidity. It has a clear historical context and purpose of retaking and subjugating its neighbours in what it considers its rightful sphere of influence.

Although we all know Russia is living in a dangerous past imperial framework, it has never been advisable to invite a crocodile to dinner and expect by frank and fearless discussion of mutual benefit to result in the retention of all your limbs. Ask Chamberlain.
Posted by: Mark Julian Smith   2008-12-31 18:28  

#2  How much does natural gas cost out in the real world?
Posted by: trailing wife    2008-12-31 17:48  

#1  Its what the Russians do in winter under the sheets to their neighbors.
Posted by: 3dc   2008-12-31 16:15  

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