Russia cuts gas to Europe and Ukraine. So it begins...

[pseudolus]

Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine | Daily Mail Online

Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine

• Gas prices rise in London
• Bulgaria reaches 'crisis' point

Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated.

This morning, gas companies in Ukraine said that Russia had completely cut off their supply.

Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.

Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine.

Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.


The European Union in Brussels called the sudden cut-off to some of its member countries 'completely unacceptable'.

Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated.
This morning, gas companies in Ukraine said that Russia had completely cut off their supply.

Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.

Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine.

Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.


Russian Prime Minister Vladimir Putin, left, speaks to Gazprom chairman Alexei Miller during a meeting yesterday

The European Union in Brussels called the sudden cut-off to some of its member countries 'completely unacceptable'.

The EU demanded the two sides reopen talks as the row immediately sparked fears of gas supply shortages and rising energy prices in the UK.

The UK is suffering one of its coldest nights this century with temperatures plunging to as low as -10C.

Though Britain is one of Gazprom's largest importers - relying on the company for some 16 per cent of consumption in 2007, according to The Times, the gas is supplied through a complicated swap scheme that means supplies themselves may not be affected.

Prices, on the other hand, rose during trading in London today.

The dispute, coupled with Israel's military operation in Gaza, also pushed oil up to a three-week high of $49.91 in New York yesterday.

Russia, whose main export is oil, stands to benefit from a recovery in prices.
'Without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities to the European Union, gas supplies to some EU member states have been substantially cut,' the EU said in a statement.
'The Czech EU Presidency and the European Commission demand that gas supplies be restored immediately to the EU and that the two parties resume negotiations at once with a view to a definitive settlement of their bilateral commercial dispute,' the presidency and the Commission said in a joint statement.

They added that the EU would 'intensify the dialogue with both parties so that they can reach an agreement swiftly'.

Overnight the Russian Prime Minister Vladimir Putin ordered the state energy giant Gazprom to cut supplies to and through Ukraine by around three-fifths amid accusations its neighbour has been siphoning off and stealing Russian gas.
Ukraine says the Russian move has been prompted by payment and price disputes, a row between the two that has become almost annual.

The effects of the dispute on the rest of Europe however is stark, said Ukraine's main gas supplier.

Around 80 per cent of the gas European Union countries receive from Russia comes through Ukraine.
While Germany and France are much more exposed, it is reckoned in some estimates that 15 per cent of Britain's supplies come from Russia through pipelines into the UK's east coast.

'They [the Russians] have reduced deliveries to 92million cubic metres per 24 hours compared to the promised 221million cubic metres without explanation,' said Valentin Zemlyansky of the Ukrainian gas company Naftogaz.
'We do not understand how we will deliver gas to Europe. This means that in a few hours problems with supplies to Europe will begin.'

Wholesale gas prices have already risen on the back of the rallying price of oil, up 50 per cent in the last fortnight to more than $48 a barrel on the back of Middle East tension over Israeli incursions into Palestinian-held Gaza.

The dispute stokes fears Britain is overreliant on imported gas. North Sea stocks are dwindling, though initiatives are in place to build the Langeled pipeline from Norway, improve underground long-term storage facilities and receive liquefied natural gas by ship from Africa and Asia.

Eastern and central European countries are already reporting supply problems, including the Czech Republic which has the current presidency of the EU. The EU as a whole depends on Russia for 25 per cent of its gas supplies.

What did the EU expect? Russia just to roll over and let them push Russia around? Good timing as well, just as the temperatures start dropping. I wonder how long it will take for Russia to say they will open the taps but only if the payment is made in a non USD currency?

Is the mighty USD is in for a pummeling?

[Neverna]

Overnight the Russian Prime Minister Vladimir Putin ordered the state energy giant Gazprom to cut supplies to and through Ukraine by around three-fifths amid accusations its neighbour has been siphoning off and stealing Russian gas.
Ukraine says the Russian move has been prompted by payment and price disputes, a row between the two that has become almost annual.

Move along. Nothing to see here. Same old, same old.

Meanwhile, the good thing about this latest dispute is that the price of oil and gas will increase benefitting not only Russia but also oil companies like BP, which is having a hard time at the moment.

[bsnub]

Keep trying. Europe does not need Russian oil. What a buffoon.

[pseudolus]

Keep trying. Europe does not need Russian oil. What a buffoon.

GAS. 30% of Europe's gas comes from Russia.

[thaimeme]

Keep trying. Europe does not need Russian oil. What a buffoon.

Talking of natural gas....

[beazalbob69]

Thank your friends in the US. They engineered a huge oil price drop to ruin Russia's economy as they were getting a little too powerful and the USA can't have that.

[taxexile]

they havent cut it off, they have re-routed it through turkey instead of the ukraine.

[Troy]

Keep trying. Europe does not need Russian oil. What a buffoon.

Yes it does and it needs Russian gas as well. Some EU countries rely 100% on Russian gas eg Latvia, Lithuania, Finland. Others rely on it to an extent that a complete cut would dramatically effect their production levels...eg Czech Republic, Germany Italy....

[bsnub]

The Russians are on the ropes. They can not cut it off because their economy will collapse. Idiots like psuedo and jeff are clueless and have no clue of what they are talking about.

[pseudolus]

The Russians are on the ropes. They can not cut it off because their economy will collapse. Idiots like psuedo and jeff are clueless and have no clue of what they are talking about.

Wowsers some strong beer you are drinking tonight. Must be what, 2.5% ?

They have cut it off. It matters not to them because they can sell as much as they like to China as they want, and not in USD.

Only country on the ropes is the US, snubby. Keep waving your flag as you watch the USD go 1:1 against the Thai baht

[bsnub]

The Russians are on the ropes. They can not cut it off because their economy will collapse. Idiots like psuedo and jeff are clueless and have no clue of what they are talking about.

Wowsers some strong beer you are drinking tonight. Must be what, 2.5% ?

They have cut it off. It matters not to them because they can sell as much as they like to China as they want, and not in USD.

Only country on the ropes is the US, snubby. Keep waving your flag as you watch the USD go 1:1 against the Thai baht

What a buffoon. The US economy is stronger the the rest of the world. The dollar is at the highest levels in sometime. You clearly have no concept of economics. Take your tinfoil tomfoolery back to your mums basement.

[bsnub]

The Russians are on the ropes. They can not cut it off because their economy will collapse. Idiots like psuedo and jeff are clueless and have no clue of what they are talking about.

Wowsers some strong beer you are drinking tonight. Must be what, 2.5% ?

They have cut it off. It matters not to them because they can sell as much as they like to China as they want, and not in USD.

Only country on the ropes is the US, snubby. Keep waving your flag as you watch the USD go 1:1 against the Thai baht

What a buffoon. The US economy is stronger the the rest of the world. The dollar is at the highest levels in sometime. You clearly have no concept of economics. Take your tinfoil tomfoolery back to your mums basement.

[Seekingasylum]

Russia fucks with Uncle Sam at its peril. It'll put them back 20 years. Don't really matter in the scheme of things since most of Russia's population are as daft and ignorant as chickenheads and rather small, under- developed beetroots.

[Cujo]

[pseudolus]

Take your tinfoil tomfoolery back to your mums basement.

But what would I tell the wife? Also, how do I convince my mum to build / dig a basement to accommodate me? All very taxing.

[HermantheGerman]

No Headlines here in Germany.
NEXT !

P.S. I hope you have enough Popcorn to make your Headlines come true.

Don't worry! Uncle Sam has enough corn to keep you popping . But you will need Dollars...not Rubels to keep you munching

[BaitongBoy]

^Bratwurst doesn't grow on trees...

[helge]

they havent cut it off, they have re-routed it through turkey instead of the ukraine.

South Stream pipeline under the Black Sea ?

Not build yet, I am afraid

[pseudolus]

No Headlines here in Germany.
NEXT !

36% of Germany's gas is imported from Russia.

A quick news search for Russland gasimport shows quite a few headlines funnily enough.

[thaimeme]

No Headlines here in Germany.
NEXT !

36% of Germany's gas is imported from Russia.

A quick news search for Russland gasimport shows quite a few headlines funnily enough.

Would be interesting to look back to the time [a couple of decades ago] before the wall fell and the EU came to form - how was Europe getting on then??

Seems as a goodly portion of Europe has somewhat become dependent on a decent percentage of natural resources and particular food stuffs, yet still looked upon as a suspected and dark shirt tail cousin.

[Kurgen]

chickenheads

the 1st one I've read this year !

[zygote1]

they havent cut it off, they have re-routed it through turkey instead of the ukraine.

South Stream pipeline under the Black Sea ?

Not build yet, I am afraid

Russia plans to shift all its natural gas flows crossing Ukraine to a route via Turkey,
Russia to Shift Ukraine Gas Transit to Turkey as EU Cries Foul - Bloomberg

The decision makes no economic sense, Maros Sefcovic, the European Commission’s vice president for energy union, told reporters today after talks with Russian government officials and the head of gas exporter, OAO Gazprom (GAZP), in Moscow.

About 40 percent of Russia’s gas exports to Europe and Turkey travel through Ukraine’s Soviet-era network.

Gazprom has reduced deliveries via Ukraine after price and debt disputes with the neighboring country that twice in the past decade disrupted supplies to the EU during freezing weather.

After building and acquiring export pipelines, the company cut transit via Ukraine to about 62 billion cubic meters last year from 137 billion in 2004.

“We have informed our European partners, and now it is up to them to put in place the necessary infrastructure starting from the Turkish-Greek border,” Gazprom's Miller said. Russia won’t hurt its image with a shift to Turkey because it has always been a reliable gas supplier and never violated its obligations, Russian Energy Minister Alexander Novak told reporters today in Moscow after meeting Sefcovic.
“The decision has been made,” Novak said. “We are diversifying and eliminating the risks of unreliable countries that caused problems in past years, including for European consumers.”

=======================

Ok. So there will be a slight disruption. Russia needs to sell its gas or else it's economy will crumble even more. This isn't a catastrophic loss for the EU. It is 40% of the 30%, of which perhaps means 18% will still find its way to the EU through the existing export avenues. The other 12% will go via Turkey & Greece. Hardly the worst crisis. Every few years we are treated to a fight between the Ukraine and Russia over this issue. I'm just amazed the militias have not attacked the Ukrainian pipelines yet.

[bsnub]

I'm just amazed the militias have not attacked the Ukrainian pipelines yet.

Because their Russian masters have told them that the pipelines are off limits.

[pseudolus]

Russia needs to sell its gas or else it's economy will crumble even more.

You've said this twice now. Lots of customers for their gas prepared to pay in currencies other than the doomed USD; China for one.

Lets see how firm Europe is when they are telling their people to turn of their heating because the US wants a war with Russia.

[HermantheGerman]

^Bratwurst doesn't grow on trees...

...and the mustard doesn't lay on the ground.