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Kiev Doubles The Price Of Cold Water, Shuts Off Hot Water

Tyler Durden's picture




 

Submitted by Simon Black via Sovereign Man blog,

No one ever thinks about the water. Or the toilet paper, as it were.

But these are among the many, many staples that become luxuries when one’s nation is in crisis.

Hours ago, the local gas company in Kiev (Kyivenergo) announced that they would be shutting off the hot water supply to most of the city.

While the official reason for the hot water shutoff is that Kyivenergo (the energy supplier to Kiev) owes a debt to the Ukrainian state gas company (Naftogaz) of over $100 million.

It’s just a quirky little coincidence that this debt suddenly became materially important only one week after Russia shut off natural gas supplies to Ukraine.

Funny thing is that Ukrainian politicians for years had been telling people not to worry about this.

You see, Ukraine has its own domestic natural gas supplies. And they tell people that the domestic gas is strictly for the people and their utilities (like hot water).

Russian gas, according to this story, is imported for businesses to use. But that domestic gas is sacrosanct, only for the people.

Clearly this turned out to be a big fat lie.

Bear in mind, it was just a few weeks ago that utility companies announced that the price of cold water would jump from 3.18 hryvnas per cubic meter to 6.22– a 95% increase, practically overnight.

So there’s an entire city now taking cold showers… and paying twice the price for the privilege! Insult. Injury.

I have several Ukrainian employees with family still in the country; they’re telling me how their loved ones are now finally starting to look at their options to get out of dodge.

It’s strange when you think about it– war, revolution, inflation, etc. All of that was OK. Cold showers?!?! “Honey pack the bags, it’s time to leave.”

I jest of course; all of this is accumulated pain that eventually culminates in reaching one’s breaking point… especially when a rational look into the future suggests this situation will not resolve itself anytime soon.

You know the outlook isn’t so great right now because Ukraine’s Vice Premier Minister is telling people that they can survive the -winter- (still months away) without Russian gas imports.

While I’m sure everyone appreciates the ‘turn that frown upside down’ approach, they’d probably just rather take a hot shower and not be lied to about the nation’s ability to sustain shrinkage.

A few key lessons I wanted to pull out of this:

1. Politicians always lie. They will tell you that your nation is stronger than it really is, that your country is prepared for whatever may come, that your benefits will never be cut, etc. And even though they may be well-intentioned, these are not promises that can be kept… especially by a nation in crisis.

 

2. A nation in crisis affects just about everything. It’s not just about numbers and data, or even Molotov cocktails. It’s hot water and toilet paper. It’s food on the shelves. It’s the stuff we all take for granted that suddenly doesn’t function anymore.

 

3. Even though the obvious warning signs are there, most people wait until it’s too late (or at least suboptimal) before considering their options. When you wait until a full blown crisis, you have to rush through critical decisions in haste instead of planning things out slowly, rationally.

Rational people have a plan B because we all have a breaking point. Do you know what you would do if you reached yours?

 

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Mon, 06/23/2014 - 21:12 | 4887806 Rootin' for Putin
Rootin' for Putin's picture

I assume this is some kind of hot water/ steam system like the Ny has etc.

Maybe its off because they are drawing ukraine gas into storage before winter

Mon, 06/23/2014 - 21:13 | 4887807 DaveA
DaveA's picture

In the former Soviet Union, hot water comes from central heating plants. The pipes are three feet in diameter and three feet above ground, rising up to 15 feet high to cross roads. Service is often shut off for "maintenance". One apartment I visited had its own water heater with no tank or thermostat, just an open gas flame underneath the water pipe. I was warned not to shut off the faucet after taking my shower.

Mon, 06/23/2014 - 21:34 | 4887875 nmewn
nmewn's picture

lol...you've got to shitting me.

Besides the ridiculous point of a "centralized hot water plant" they have to insulate the pipes to prevent loss of hot water "heat" because of not putting them underground where they're insulated naturally? And this is an example of Russian engineering?

Now I'm long shovel ready ;-)

Mon, 06/23/2014 - 21:39 | 4887892 logicalman
logicalman's picture

If you are surprised by central planners making dumb decisions, you've not been observing the world you live in.

Mon, 06/23/2014 - 22:15 | 4887999 nmewn
Mon, 06/23/2014 - 23:57 | 4888228 pathetic looser
pathetic looser's picture

they use concrete for that sometimes

 

Mon, 06/23/2014 - 21:43 | 4887906 are we there yet
are we there yet's picture

I will be lecturing in Kiev Ukraine in September. Cold showers will be a new experience. Cold showers for English, Russian, and Ukranian speakes alike in Kiev could be uniting in a cold sort of way.

Mon, 06/23/2014 - 21:46 | 4887922 logicalman
logicalman's picture

I think you will shower less frequently!

Don't forget the deodorant!

 

Mon, 06/23/2014 - 21:46 | 4887921 Jack Burton
Jack Burton's picture

This is just the beginning of a bankrupt Ukraine without Russian bailouts which have kept it afloat for 2 decades. All that extra cheap gas was critical. Now that is gone. Also Russia was the main market for Ukrainian goods and food exports. Now that will decline as well. Face it, the west ain't gonna buy shit from Ukraine, in fact, Germany will shut down all industry in Ukraine in order to put German goods in every shop. Unemployment will skyrocket. And the loans! Those will be robbed away and people left with servicing costs for 50 years. This is what they rioted for? Clever people those Kiev clowns.

Mon, 06/23/2014 - 22:17 | 4888005 Flagit
Flagit's picture

 

Face it, the west ain't gonna buy shit from Ukraine, in fact, Germany will shut down all industry in Ukraine in order to put German goods in every shop. Unemployment will skyrocket.

 

Then who will be left to buy those German made goods?

Mon, 06/23/2014 - 21:48 | 4887929 are we there yet
are we there yet's picture

I predict a new Ukranian proverb..... Central planners are full of hot air, and central heating is full of cold water.

Mon, 06/23/2014 - 22:31 | 4888044 Nue
Nue's picture

Deficits don't matter until your credit runs out and then suddenly they do.

 

Mon, 06/23/2014 - 22:40 | 4888065 Dublinmick
Dublinmick's picture

I don't think the average Ukrainian actually realizes the concessions Russia has made to them to keep them on at least a subsistence standard of living since the fall of the USSr.

I would venture a guess that Russia has tried to offer their advice to various apartchuks who have run for office there, Yuschenko, Yanu etc. It most likely was not heeded and probably distorted by the press.

I have a feeling after this winter, when Vlade speaks, everybody listens. It is going to be like that Dean Witter commercial.

Mon, 06/23/2014 - 22:59 | 4888109 robertocarlos
robertocarlos's picture

Our water pipes are still frozen from last winter. The frost hit a record depth below ground.

Mon, 06/23/2014 - 23:28 | 4888167 pathetic looser
pathetic looser's picture

serves being played as pawns again and again.  poor uks. but what did they expect? allright you kicked one guy out and voted for another oligarch?  noone bothered to understand why things are so bad in a counrty , what is actually happening and what will happen next. 

 

Tue, 06/24/2014 - 00:59 | 4888330 Spungo
Spungo's picture

Do they still have electricity? You can heat water using electricity. I saw it on the TV once.

Tue, 06/24/2014 - 01:57 | 4888397 laomei
laomei's picture

Central hot water is efficient when done right.  We're on city heat for winter and I wouldn't have it any other way.  Depends on your circumstances, but it will either be blistering or chilly.  If it's not up to standard it's free, although it's usually because of your own pipes being fucked up.  Makes perfect sense in a high density environment.

Tue, 06/24/2014 - 07:10 | 4888592 Last of the Mid...
Last of the Middle Class's picture

Centrally distributed hot water. Too fucking funny. Once the system goes cold it'll only take a month or so to get the hot water back. Meanwhile that turtle looking think between your legs is your dick. Never EVER let the governmet control services needed for basic sanitation such as bathing. What dumbasses.

Tue, 06/24/2014 - 07:16 | 4888597 laomei
laomei's picture

It generally has to do with apartment size and whatnot.  A large water heater is generally a giant waste of space and a giant waste of energy as it just sits there unused most of the time.  On demand gas heaters are far better and don't take up much space, however they do still suffer from efficiency problems.  A centralized system generally makes the most sense as long as it is adjusted based on demand, add in an on-demand heater for backup and you're good.  Too bad all the on-demands burn gas though lol.  As mentioned previously, the hot water is essentially free as it is a byproduct of power generation.  Nothing more than an extra water main.  But... this is Ukraine, and the Ukes have a history of being retarded when it comes to pretty much everything.

Tue, 06/24/2014 - 07:29 | 4888615 AdvancingTime
AdvancingTime's picture

The ramifications of Russia ctting off the flow of natural gas to Ukraine are massive and will immediately effect all of Europe. The idea of America getting involved or jumping into a war in Ukraine would have been hard to imagine a few years ago. As I write this the potential for this to escalate into a major shooting war is real. Allowing events to deteriorate into a major war or possibly into what some see as World War III is becoming a reality.

As insane as it appears this could become the final outcome. The location of this as a military confrontation is right in Putin's backyard and this is a strong advantage for Russia. It is silly to think Putin and Russia will back down. This means poking the bear is not a smart move. More on this subject in the article below.

 http://brucewilds.blogspot.com/2014/04/war-in-ukraine-bad-idea_26.html

Tue, 06/24/2014 - 08:01 | 4888640 JohninMK
JohninMK's picture

If it does turn into a war it will be probably be like Libya not Iraq. All the Russians have to do is turn their air force loose, no need for troops on the ground.

Putin is nobody's fool. He knows he can turn the whole of the Ukraine into a 'no fly' zone but limit the air forces' ground attack activities to the eastern half of the country in support of the Russian trained and equiped Ukraine Army (East). If he leaves Kiev and the west alone he will seriously reduce the pressure on the US to do something. The nearest US/NATO forces are hundreds of miles away in Germany.

In the meantime the sheeple in Kiev will gradually wake up to the fact that they have been stiffed by the US/EU banksters. that the promises of an easy better life (without doing anything) are a mirage and that reverse flow gas from the EU might heat their water up to tepid but only on a hot day.

In a few years they may have their own US funded gas fields and efficient agriculture but they have no choice, if they are not to freeze or regress to the Middle Ages this winter, but to bargain with the Russians.

I can't see the EU/Poland/Slovakia/Hungary/Romania welcoming streams of Ukrainian refugees across the border this Autumn.

 

Tue, 06/24/2014 - 16:57 | 4890752 leekyuranus
leekyuranus's picture

Story is utter bollocks. No such thing as 'distributed hot water' (THINK! you idiots) and people in Kiev assure me that the price of water has NOT DOUBLED. ZeroHedge propaganda - check your facts.

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