Europe Folds As Putin Tells It To Pay Ukraine's Gazprom Bill, Or Else

Tyler Durden's picture

Another day ending in "y" means another day in which Putin plays the G(roup of most insolvent countries)-7 like a fiddle.

The latest: Europe should provide aid to Ukraine to ensure uninterrupted natural-gas deliveries to the region, President Vladimir Putin’s spokesman said as reported by Bloomberg.

"Russia is the only country helping Ukraine’s economy with energy supplies that are not paid for,"  Dmitry Peskov told reporters today in Moscow,  commenting on President Vladimir Putin’s letter yesterday to 18 European heads of state. “The letter is a call to immediately review this situation, which is absurd on the one hand and critical on the other.


Or, as we explained yesterday, Russia is quite happy to keep the EU gas flowing... as long as Ukraine has enough gas in storage to assure Gazprom it won't syphon off gas destined for Europe. So how much gas does Ukraine need to pre-stock? About $4-5 billion worth. The problem is that Ukraine doesn't have a dime to spend on gas.

So putting the question aside if Ukraine will or won't import even one bcf of Russian gas ever again (thanks to some fracking or US natgas exporting magic), what Putin just said is that if Europe wants an uninterrupted supply of gas it better find a way to fund Ukraine to the tune of up to $5 billion, or else the gas may just get shut off.

And guess what: Putin is about to win yet again:  

European Energy Commissioner Guenther Oettinger is working on a plan to help Ukraine pay some of its gas bills to Russia, he told Austria's ORF radio on Friday, saying there was "no reason to panic" about Russian gas supplies to Europe.


"We are in close contact with Ukraine and its gas company to ensure that Ukraine remains able to pay and the debts that the gas company has to Gazprom do not rise further," he said, adding he would meet Ukraine's energy and foreign ministers on Monday.


"I am preparing a solution that is part of the aid package that the IMF, the European Union and the World Bank is giving to Ukraine and from which payment for open bills will be possible."

The chass game continues: Putin X+1 - Pidgeons 0

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Not Too Important's picture

The Trotsky Communist Jews who were eventually thrown out by Stalin, who went west and whose children are now neo-Cons, planning for the same singular world government that Trotsky and his backers wanted.

At least the Fukushima radiation will kill 'em all in the US within the next few decades - hopefully sooner, and their children first. No more generations of this bullshit. This is the silver lining to the Fuku omnicide.

This isn't a battle of Good vs. Evil anymore. It's all over, all of it, only at a very slow pace.

Sirius Wonderblast's picture

And, of course, Trotsky (born Bronshtein), was from Ukraine.

Oh regional Indian's picture

I wonder why the tribe leaders feel the need to be hated.

Read the story of how Poland was taken in the 17-1800s. Fascinating story....

Very strange....

eclectic syncretist's picture

Ukranians are being held hostage like Judith between caught between Gunny and Jack Black.

luckystrike6's picture

What do you mean the "real" holocaust? The starvation of Ukraine by Stalin - the Holodomor - was indeed horrific. However, it in no way invalidates the Holocaust perpetrated by the Nazis. And Ukrainians composed some of the most vicious Nazi death squads, and were favored as concentration camp guards.

My grandfather's parents, along with six of his brothers and sisters, his uncle and his cousins, were murdered during the Holocaust in an area which had been eastern Poland. One brother survived Auschwitz and made it to the end of the war - a stick figure who had learned to bury his feet in the mud so it was harder to lift him, when lined up before the mostly Ukrainian guards to see if he was still healthy enough to work or should be gassed.

You should read Timothy Snyder's "Bloodlands" as it explains both these events - the Holodomor and the Holocaust - in a full context. It's also very instructive as to what's going on in Ukraine right now. In any case, read some real history before you start implying that one was "real" and the other was not.

You have no idea what you're talking about, but it's highly offensive to people whose families were killed in the Holocaust. It's also absolutely wrong to blame "Zionists" for what happened under Stalin or what's going on in Ukraine now. I don't think you even understand the term "Zionism". It implies that the Jews needed a homeland -- a view that the survivors of the Holocaust came to.

So good for you for playing your instrument and having your TED talk but you should learn something before you simply throw around statements that blame Jews for every problem in the world. It may seem acceptable and popular on this forum but it's down to a handful of racists, it's offensive and unacceptable.

Oh regional Indian's picture

Not to be insensitive, but have you read any David Irving?

Hiiiighly recommended.You cannot deny the other side fo th ecoin either. It's just like India Pakistan and our forced separation by the brits and the millions who died.

Our own stooge, Gandhi, helped perpetrate it. By the way, millions died.


Who to believe? My own mother ran away from there as a 3 year old. See how it works? 

I'm assuming from your tone that you are Jewish. Just understand that you do not own the rights to the world's sympathy.

Since the Jews obviously won WWII (they got their own country), who do assume wrote the history of that war? 


Relax, play an instrument and give a TED talk if you can.


Troll Magnet's picture

Obama and his Eurotrash Zionist whores will offer to pay in hashtags.

Poundsand's picture

Played to perfection. 

1. Russia gets the EU to pay the Ukraine's IOU.

2. Germany gains a new understanding of just how vulnerable their economy is w/o Russia's natural gas.

3. Germany, the only player with $$, but without Au (still in US vaults) is soon to realize that they will need that Au to pay for that gas.  I wonder with all the spying as well, if they are moving away from the US?  Do they really need us anymore?

Seer's picture

"they will need that Au to pay for that gas. "

They've still got viable exports, exports that'll have to shift toward Russia and China.

Long trade routes will become increasingly more tenuous.  In the end it all regionalizes.

Tall Tom's picture

I hope that you are correct and we do not see war because that will be the end of us all.


Regional trade will be more fuel efficient in a depleted energy world. I do foresee that as well, Seer, if war does not kill us off before that realization.

Flagit's picture

but without Au (still in US vaults)



StychoKiller's picture

If the EU insists on following the US edicts, they deserve whatever thumbscrews Putin puts on'em!

onewayticket2's picture

time for another pink line....

toys for tits's picture

If Putin was collecting a debt from me, I'd pay it too.

CrashisOptimistic's picture

That's not the way this plays.

1) $104 WTI now

2) When the first loans arrive at Ukraine, this will mean nothing. 

3) When the SECOND loans arrive, it will become clear that most of them are to service the first loans, in exactly the same way as is done in Greece.  They get money and debt service is first priority -- except

4) Russia won't allow it.  First priority will be gas.  This means, and the IMF and EU realize this, the flow of money from them to Russia will never stop.  Ukraine won't recover.  They have nothing.  The vaunted agriculture is thinking from 80 years ago.  They have powered irrigation now and potash expense.  All of that comes from Russia, aka oil.

5) They are fucked.  Russia was carrying them.  The EU and IMF will be looking for an exit soon.  The Euromaiden wackos will be begging for asylum before it's all returned to Russia.

HardlyZero's picture

Regarding 5) many US top leaders are being extremely pro-active and pre-emptive and are leaving now or yesterday.

The top brass may all be exiting in 2014.

Tale2cities's picture

If i were a Ukranian,and Ihated Putin,I would blow up the gas lines to Europe.
That might just happen.. Pay back for the Holodomor.

HardlyZero's picture

Take a better look.   Russia is actually attempting to protect all the lines and to complete the new southern line through/bottom of the Black Sea.

From a military perspective Russia is 100% correct and will protect their source of 50% of their export income.

Why do you think this is coming to a head ?

Russia prefers to do their own protection versus waiting for one day NATO (really 'nada') maybe getting around to it.


This is major immediate issue for both European and Russian survival...before next winter...only 6 months from now.

In a few months the whole region will probably calm down, but of course Russia may also need to control the nuclear/oil/gas generated electric power to Crimea...but otherwise Russia is just protecting its own interests.


Russia is protecting its interests and 'taking charge' of the situation before the Western children wreck everything and it all goes "poof".

I don't think Putin takes the West seriously these days since there is a poor track record of defense.

Bioscale's picture

You don't know what you are talking about.

Those pipes deliver gas to people of Hungary, to Czechs, Slovaks, Germans and Poles and others. With blowing up the gas lines the government of Ukraine would see in a second tens of millions of angry people demanding Russia to step in and kick ass those stupid Ukrainian fascists governement puppets licking US assholes.

StychoKiller's picture

Hmm, now you're thinking like a chessplayer!

Buck Johnson's picture

They are getting played by a master, a true master.

hungarianboy's picture

Look, EU get's to much power. In the interest of the US it is better to have some issues in Europe so that US won't become the doggy of EU. So they try to inflict some war. First they tried it in Bosnia, now Ukraine. Don't forget, In Bonsia the Muslim terrorists killed serbian people and sent their heads in a box to Mladic. That was in 91/92. That made them angry, it wasn't the fault of the serbs to protect their own citizens. Nato bombed there.

I hope the NATO , US and EU wake up and leave here from the region before it's to late. Mr Putin has everything under controll. No need for intervention or any misleading journalism. Leave our region fucking alone!

Serfs Up's picture

Sounds like it's time to panic.

Doubleguns's picture

Not yet. IMF and world bank still have some money. After they are broke it will be time to panic. Of course as someone once said. Panic now and avoid the rush. He might have been a prepper. 

Element's picture



"Not yet. IMF and world bank still have someone else's money"

fixed it for ya

strannick's picture

How can you ever go broke when your digitizing dollars?

Element's picture

When no one wants them in trade exchange anymore.

Jumbotron's picture

"Europe now waxes itself hairless because that's the way the bankers like it."

With the added bonus of anal bleaching for that nice, clean look and smell.

John Wilmot's picture

I'm suddenly having a Bill Hicks flashback

X_mloclaM's picture

LaVorgna said 'degree', that counts

Kirk2NCC1701's picture

IOW, the bankers like naked shorts.

StychoKiller's picture

In essence, someone (CIA?) broke the Ukraine, now someone has to step up and fix it, but the EU/US/UK doesn't want it to be Russia!  C'mon Putin, stick some more bamboo slivers under their fingernails, they absolutely deserve every one!

MillionDollarBonus_'s picture

This is actually a great opportunity for Europe to move away from harmful fossil fuels and start investing in green sustainable energy sources. Never before in history have the incentives for countries to invest in green technology been greater. Climate change and energy independence are now one problem, and the need for action is greater than ever.

slightlyskeptical's picture

They will, but it will take a decade to make a dent in lost Nat gas supplies.

FinalCollapse's picture

Abundant supplies are available from Norway and Algeria. WTF you are talking about?

EU imports 130 bcm from Russia.They use 421 bcm overall.

"Europe has built 22 import terminals with six more under construction, which could handle around 220 billion cubic meters (BCM) of natural gas imports. Keep in mind that number is compared to a total consumption in the EU of 421 BCM in 2013, of which Russia supplied around 130 BCM. And electricity generation counted for one quarter of gas usage, some of which can be substituted for coal or nuclear in a pinch."

Norway exports 100 bcm (and slowly declining) and Algeria exports 55 bcm (out of 85 bcm total and inreasing now). Both Norway and Algeria can fill the gap if Gazprom goes to hell. The  LNG terminals in Western Europe are grossly underutilized. New LNG terminals are coming online in: Poland, Lithuania and Estonia. All these countries pay very high prices for the Gazprom gas so for them it will be cheaper source.

LNG can be brought from Qatar, Algeria, Nigeria, Norway right now. Within few years Australia will be the biggest LNG player which will certainly suppress the prices as they have an ocean of gas available for export. Even if they supply the Asian markets this will make more cheap LNG available to EU as it is a global marketplace. 

After 2009 when Gazprom cut off the supply, the EU-27 in aggregate started to decrease their dependence on natgas. The usage of natgas  drops 5% every year and the gradient of decline is increasing. Gazprom is facing dropping demand, declining market share and falling prices. 

These are hard facts that are easy to verify - unless your dream is to lick Putin's balls. I hope your dream will come true :-)

To all Putin ball lickers - the fact is that Gazprom can disappear right now and there will be very few tears in the world and in EU in particular.

bagehot99's picture

The only problems with your plan:

1) Ukraine doesn't have any money for windmills either.

2) It may take more than two weeks for the development of enough energy to replace the natural gas.

In other words, you're just a hack who seizes any opportunity to proselytize your religious beliefs.

toys for tits's picture

That Ukraine doesn't have any money is borne out by the 40 countries that are chipping in 1.5 billion Euros to seal off cherynobyl with a massive sarcopha tomb.

Not Too Important's picture

The first one didn't last 30 years. The new, second one is only designed to last 100 years. The radiation inside is lethal for 10 billion years.


Sirius Wonderblast's picture

No - between 88 and 24000 year ecological half life, depending on the type of plutomium. For the caesium, about 30 (albeit at Chernobyl it appears to be persisting longer tthan anticipated).

Still plenty long enough.

Not Too Important's picture

The main ingredient of nuclear fuel rods is U-235, with a half-life of 704 million years. As it begins to 'decompose', it breaks down into new 'daughter' isotopes, with their own new half-lives. Radioactive isotopes actually get hotter initially, before they start to 'decompose'. The molten cores at Chernoby and Fukushima are getting hotter, not colder. It could be argued that the cores at Fukushima are still 'fissioning', as radiioactive iodine, with a very short half-life, is still being detected thousands of miles away, now over three years later.

All plenty long enough to generate a full bio-collapse.

Haus-Targaryen's picture

I used to think you were serious.  Now after the above you're just here for the lulz. 

You have to be one of the most committed trolls I've ever seen.  If you were to get your low IQ schtick to the same level as your shitlib shtick, you would be the best troll I've ever seen on the interest.  You've got some improving.

BlindMonkey's picture

MDB is a comic genius. Just open your mind and grok the sarcasm. Let it soak in like warm sunshine....

ILLILLILLI's picture

It's the "Theater of the Absurd" with a fine edge...not everyone gets it.

RafterManFMJ's picture

Yea I'm fascinated some don't get it; these same people probably read "A Modest Proposal" and thought it was an actual, serious, proposal.

Tall Tom's picture

And I just ate those broiled babies? wasn't serious???


I guess I had best start wearing those rubber things and get rid of the misstresses.


Is /sarc needed?

Jack Burton's picture

Indeed. MDB is a must read. I love his sarcasm. How can people not undestand it? Is that due to the American Public Education System? In most countries MDB would be recognized at once as a clever witty sarc master.

centerline's picture

You have been around for awhile JB to remember some real good ones here that have come and gone.  I miss most of them.