• Russia to start requiring payment for gas
    17 replies, posted
[QUOTE]WARSAW, May 2 (Reuters) - Russia on Friday threatened to cut natural gas supplies to Ukraine in June if it receives no prepayment in an escalating row between Moscow, Ukraine and the European Union over energy supplies. Relations between Russia and the West have fallen to their lowest ebb since the Cold War following Moscow's annexation of Ukraine's Crimea region and the outbreak of clashes involving pro-Russia militia in the east of the country. "If we don't receive pre-payment for June by May 31, then it is possible Gazprom will reduce gas supplies to Ukraine or provide it with the capacity it has paid for by May 31," Russia's Energy Minister Alexander Novak said during joint talks in Warsaw between Russia, Ukraine and European Commission. He also warned that Ukraine might not be able to store enough gas during the summer for transit to European countries in the winter. A third of the EU's gas demand is met by Russia, with almost half of that passing through Ukraine, which is currently in a pricing dispute with Russian gas exporter Gazprom, its third in the past decade. Gazprom says Kiev owes it some $3.5 billion for gas already delivered. Friday's gas talks were held after Russian President Vladimir Putin called on the EU to intervene to avert a repeat of gas cuts prompted by the two previous pricing disputes. Coming out in support of Ukraine, EU Energy Commissioner Guenther Oettinger told the gas meeting that the EU would support Ukrainian gas firm Naftogaz economically, adding he hoped there would be no gas stoppages. "Stakeholders promised that there will be no stoppages in gas deliveries and despite ongoing legal issues, gas will be delivered to the EU and Ukraine by end-May," Oettinger told a press briefing. The three sides will meet again in mid-May and at the end of the month. Ukraine Energy Minister Yuri Prodan said Kiev was willing to pay a fair market price for gas. The country enjoyed a brief price discount offered under former pro-Russia Ukrainian President Viktor Yanukovich earlier this year but Gazprom hiked the price in April following his ouster. "Ukraine, having received from Russia an unjustified, discriminatory price for gas from April 1, 2014, at nearly $500 per 1000 cubic metres (up from under $300), will not be able to pay for gas deliveries at this price," said Ukraine's energy minister Prodan.[/QUOTE] [url]http://www.reuters.com/article/2014/05/02/europe-energy-oettinger-idUSL6N0NO1JZ20140502[/url]
Is this the part where the U.S. jumps in over oil?
Not much else to say about this, Russia's invading and starting to squeeze on Ukraine as much as it can.
[QUOTE=bull3tmagn3t;44709150]Is this the part where the U.S. jumps in over oil?[/QUOTE] No, this is where the U.S. starts sending natural gas. Because again, natural gas is not oil.
Finally cutting them off from free gas, seems fair after they cut irrigation water to Crimea even when Crimea was paying them.
There's not much to criticize here, seeing as how Russia's been giving Ukraine massive discounts on gas prices for years now.
[QUOTE=Explosions;44709590]There's not much to criticize here, seeing as how Russia's been giving Ukraine massive discounts on gas prices for years now.[/QUOTE] Pretty much. Fuck Russia for a million reasons, but this is not one of them.
t[QUOTE=mix999;44709548]Finally cutting them off from free gas, seems fair after they cut irrigation water to Crimea even when Crimea was paying them.[/QUOTE] except that was an RT sensationalized headline when in fact all the canals were filled except for one I still can't believe Europe has built themselves to be so dependant on Russian gas
[QUOTE=mix999;44709548]Finally cutting them off from free gas, seems fair after they cut irrigation water to Crimea even when Crimea was paying them.[/QUOTE] Wasn't that because some of Crimea's irrigation systems failed and not Ukraine?
[QUOTE=Sableye;44709658]t except that was an RT sensationalized headline when in fact all the canals were filled except for one I still can't believe Europe has built themselves to be so dependant on Russian gas[/QUOTE] Because people were stupid and thought that because the Cold War is over that Russia would never be a threat.
The way NATO is expanding in Europe and how soon the US is expected to have it's oil supplies starting up, I wouldn't be surprised if they started switching from natural gas back to oil. Which is a really bad thing, but almost unavoidable if Russia is going to be on bad terms with the west. [editline]3rd May 2014[/editline] And mind you the oil we're starting to dig up here isn't just normal oil, it's shale oil, which is like 10x worse for the environment.
[QUOTE=Reshy;44709671]Wasn't that because some of Crimea's irrigation systems failed and not Ukraine?[/QUOTE] No. They gave a statement about why they stopped providing irrigation water, and RT was never a primary source for that.
Is natural gas priced on a world market the same way as oil? The US economy has been riding high on an oversupply of natural gas that has bottomed out prices, so much so that we're closing coal plants and building natural gas plants. If Russia shuts off the taps, and that runs up the global price of natural gas, doesn't that completely fuck up the US? Or are natural gas supplies in the US not priced like that?
Well, things have a price, and if you screw someone else over because you are not paying everyone will hate you
[QUOTE=Used Car Salesman;44710025]Is natural gas priced on a world market the same way as oil? The US economy has been riding high on an oversupply of natural gas that has bottomed out prices, so much so that we're closing coal plants and building natural gas plants. If Russia shuts off the taps, and that runs up the global price of natural gas, doesn't that completely fuck up the US? Or are natural gas supplies in the US not priced like that?[/QUOTE] The gas market in the US is way different than the gas market in Europe, so it shouldn't affect the US much. [editline]3rd May 2014[/editline] The US has however been playing with the idea of exporting gas in the form of LNG. Which is supposed to make the gas economy somewhat like the oil economy. The port of Rotterdam is actually already equipped to deal with big shipments of LNG.
[QUOTE=Used Car Salesman;44710025]Is natural gas priced on a world market the same way as oil? The US economy has been riding high on an oversupply of natural gas that has bottomed out prices, so much so that we're closing coal plants and building natural gas plants. If Russia shuts off the taps, and that runs up the global price of natural gas, doesn't that completely fuck up the US? Or are natural gas supplies in the US not priced like that?[/QUOTE] No it means those abundances of overstock stop being a burden and turn into massive profits all across the board
Russia has gas if you have coin.
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