Gazprom Warns Of "Repetition Of 2009 Gas Situation" In Ukraine

Tyler Durden's picture

We have discussed the sword of Damocles that is hanging over the heads of the Ukrainian (and European for that matter) people for some time. The dominant role that Russia plays in providing energy is becoming critical, however, as Gazprom notes:

  • *GAZPROM: UKRAINE DEBTS CREATE 'RISK OF RETURN TO SITUATION AT BEGINNING OF 2009' (when Gazprom cut off Ukraine gas supplies)

Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians.


Via Interfax,

The debt that Ukraine's Naftogaz Ukrainy owes for Russian natural gas has risen to $1.89 billion, Gazprom CEO Alexei Miller told journalists.


"In fact, this means that Ukraine has stopped paying for gas," Miller said.


"This is completely at odds with the provisions of the contract and international trade practice. For our part, we have always met and will meet our contractual obligations. But we can't supply gas free of charge. Either Ukraine repays its debt and pays for current deliveries or the risk of returning to the situation at the beginning of 2009 will appear. We will notify the Russian government concerning the situation that is taking shape," Miller said.


"Today, March 7, was the payment deadline for February's deliveries of gas to Ukraine. Gazprom has not received payment on the debt. Including the price discount in effect in the first quarter, the overdue debt for gas has increased significantly and now totals $1.890 billion," he said.

It would appear this is the most important map in Europe once again...


and what happened in 2009...

Gazprom demanded a price hike to $400-plus from $250, Kiev flatly refused, and on New Year's day 2009, Gazprom began pumping only enough gas to meet the needs of its customers beyond Ukraine.


Again, the consequences were marked. Inevitably, Russia accused Ukraine of siphoning off supplies meant for European customers to meet its own needs, and cut supplies completely. As sub-zero temperatures gripped the continent, several countries – particularly in south-eastern Europe, almost completely dependent on supplies from Ukraine – simply ran out of gas. Some closed schools and public buildings; Bulgaria shut down production in its main industrial plants; Slovakia declared a state of emergency. North-western Europe, which had built up stores of gas since 2006, was less affected – but wholesale gas prices soared, a shock that was declared "utterly unacceptable" by Brussels.

Forget those sanctions...

The market is not happy - Ukraine is not fixed as June 2014 bond yields soar to 47%!!


and German stocks are tanking...



The acting Premier is in panic mode:


We suspect, as the bond market makes clear, that any IMF money will go direct to Gazprom and not to debt repayment



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Flakmeister's picture

I'll take notice when Putin shuts down NordStream....

johnQpublic's picture

Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians



and people on welfare arent supposed to depend on it forever

'supposed to' and reality rarely meet

gmrpeabody's picture

Actually..., cold olive soup is on the Friday night menu in our home.

TruthHunter's picture

"Actually..., cold olive soup is on the Friday night menu in our home."


And?  Then you get Russian Gas or Italian gas?

merizobeach's picture

"Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians."

Yeaaaah, um, I'm gonna need you to go ahead and come into the office on Saturday... and also Sunday, so, um, see you at nine o'clock [so you can raise that bailout by an extra $0.89 billion!]

Uni's picture

Where I live cold soup is quite popular (and tasty)



john39's picture

the kagens and their role in subverting U.S. foreign policy exposed:

ThisIsBob's picture

And if they won't use that USA account money for gaz won't it  free up a billion somewhere else?

cowdiddly's picture

Free up What money. lol their broke. Once again, Who runs Bartertown bitchez?

merizobeach's picture

I don't think it works like that.  I'd guess they're broke, and haven't billions laying around anywhere.  Hence the bailout (which, apparently, still won't keep the stove lit unless they're burning wood).

SilverIsKing's picture

Yo Kerry, while you're at it, buy Putin some hookers and blow. Just put it on my account. Yeah, same as the $1B.

GetZeeGold's picture



.....prices will necessarily rise.

Urban Redneck's picture

MUST. . . PRINT. . . MOARRRRRR ! ! !

Sufiy's picture

US Dollar Slides To The New Low 79.51 As Ukraine Situation Moves To Economic Warfare

  US Military Complex can not be challenged by anyone in the open conflict, but once things are moving into the field of asymmetric economic warfare tactics of Financial Wars U.S. has a problem. Economy can not really handle any external shocks now, Bubble in the equity markets is not translating into the healthy growth so far. Any serious correction in the market can bring very weak economic data further in the proximity of potential recession. And this is where Ukraine situation is coming so handily to the FED's rescue out of Taper. Do you really think that the banks want the tigthening of the money supply now? FED wants Weak US Dollar, FED wants Inflation and FED is ready to pause Taper at any excuse now. Further escalation around Ukraine situation will provide this excuse right in time when the economic data will be turning even weaker than now.

disabledvet's picture

Bwhahahahaha. The USA is the largest energy producer in the world. And the largest food producer. "Ukraine needs to be secured right now."

Russia has their "War in Crimea." The EU moves to secure the bulk of Ukraine's territorial integrity.

Putin...if he is to do anything here....needs to act immediately.

Of course so does the EU. "Ukraine must remain whole and open for business."

LawsofPhysics's picture

Yes, Putin knows he must move quickly, and that's why he is.  Many people don't understand this.

However, he can move quickly.  As for the stuffed crimminal shirts in the west, not so much.


Now remind us, what is the DEBT:GDP of say the U.S.S.A. and the E.U. compared to the DEBT:GDP of say Russia and China?

Tick tock...

WMM II's picture

"Now remind us, what is the DEBT:GDP of say the U.S.S.A. and the E.U. compared to the DEBT:GDP of say Russia and China?"


since the 1998 default by Russia?





Chupacabra-322's picture

"Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians."

But, but, wait. What about the $5 Billion the Criminal UNITED STATES, CORP. INC. forked over back in December with a visit from Criminal Foreign Agent McCain?

toady's picture

That went to the Ukrainian ex-President. Something about a private island and fifty years payroll for private security.

You didn't think he'd take time to pay the bills before he left, did you?

Independent's picture

If you mean Nuland five billion that money is sitting in offshore accounts and onshore accounts in Swiss and Israel.  Remember all this money never has to be accounted for how its spent, just like TARP.  Its free money for dual citizens to have a GOOD TIME and become uber wealthy

Chupacabra-322's picture

Perhaps it's also parked at the local friendly Criminal IMF. The funds never really go directly to the Ukraine or its people. John Perkins author of "Confessions of an Economic Hitman" confirmed as much.

Dr. Engali's picture

Don't worry Putin. The BernankinYellen is printing you up a check right now.

NoDebt's picture

No, see, that's impossible because of this:

"Of course, the US agreed to $1b bailout yesterday - but that's not supposed to be used as a direct transfer payment to the Russians."

So, as you can see, there's no way that can happen.  No way.  Impossible.

disabledvet's picture

I'll take notice when Ukraine shuts of Nords Stream.

The ruble has already collapsed so obviously you have a massive inflation problem in Russia.

Any cut off in of anything in Ukraine means food prices soar in Europe at large.

Flakmeister's picture

Nordstream goes nowhere near the Ukraine...

Rip van Wrinkle's picture

But doesn't Draghi WANT inflation?

Sudden Debt's picture


that's what my father used to say and that should apply to everybody.

If you can't pay for the gas, don't order it.

Dr. Engali's picture

Hah! have you learned nothing? If you can't buy a steak you lever up your dollar , buy 10 cokes, re-hypothicate the cokes, and  buy a four course meal a hooker and a room.... maybe a couple hot pockets for good measure.

GetZeeGold's picture're pretty good at this.

thecoloredsky's picture

Problem is, in 2009 it was turned off from Jan 1-Jan 20 in the dead of winter. Now its March with higher temps which I assume makes less of an impact. I could be over-simplifying it though.

Debugas's picture

actually Ukrain has enough of its own gas to keep people warm at winter. The problem is the industrial demand


waterwitch's picture

The FED is issuing a one-of-a-kind platinum coin, worth $1.8 BN--with Yanacovich's image on it.  That should suffice, don't you think?

krispkritter's picture

Get your free ObamaGas! Amazing.  Americans who are struggling to fill their tanks or heat their homes because of energy costs are paying for some other country's gas bill after 5 times more of their tax dollars were used to destroy their elected government.  Yeah, we're getting fucked alright.  And I haven't heard a peep about the billions that were dumped into the Ukraine and went missing. How about they find those umpteen billions and pay their own fucking bills...

LawsofPhysics's picture

Who runs bartertown?  Shut the fucking pipelines down already.  If Russia was smart, they would keep those calories for their own businesses and industry (or exchange them for something fucking real (like gold or new technology).

Flakmeister's picture

LOP, but Russia is not "smart", at least their oligarchs are not...

If anything the past 20 years has seen a rise in the dependence of the Russian economy on hydrocarbon exports... Now up to 70%... 

It is a easy skim for the kleptocrats, building something real is much harder and not nearly as lucrative in the short term..

By any objective measure, Russia is on its way to becoming Nigeria with ICBMs....

The Russian current accout is no great shakes either

They do have pretty impressive foreign reserves though, ~$500B...

LawsofPhysics's picture

"By any objective measure, Russia is on its way to becoming Nigeria with ICBMs...."

and somehow you think this is a good thing?

They can still set the price and terms for selling those resources, period.  Sounds to me like it's time for the Russians to renegotiate all those contract.

Remember, when fruad it the status quo, possession is the law.

Flakmeister's picture

Re: Nigeria,  not in the least....

The slow and steady concentration of the Russian economy makes it less resiliant and more suseptible to unrest... 

It takes a much smaller coup to effectively control things (not that I am predicting a coup anytime soon).....


Russia is literally tied at the hip to the EU, their oil and gas exports (80%) are constrained the pipeline system that aint't going to be revamped to flow East or anywhere else anytime soon... 

They can only play the game you suggest if they can find alternative buyers. Otherwise they suffer as well if the taps are shut...

In reality, the Ukrainian pipeline system is not an asset but more of a liability to the Russians... A captive 3% of GDP flows through the Ukrainian gaslines....

LawsofPhysics's picture

There are plenty of alternative buyers.  China being the big one.

SpanishGoop's picture

Europe should pay Gazprom on an European Gazprom account and right after that block and confiscate the account.

"Hey, we paid the bill the rest is due sanctions".

 Win/win....or not.


buzzsaw99's picture

those maggots are going to give my money to the ukraniums? you bastards!

Montgomery Burns's picture

Rule *1 for (former) dope dealers.....Do not front!

Dewey Cheatum Howe's picture

That next bill will be double the US/EU has to subsidize if they want to keep the gas on, the contract is up....


hookah's picture

Wow Russian soldier really protecting Crimea