Russia Says Ukraine Took Gas Despite Cutoff; Sends More Tanks/Troops To Border

Tyler Durden's picture

The deadline passed on June 16th for Ukraine's payment for gas already provided and upfront 'pre-payments' for ongoing deliveries. So what the Russian Energy Minister wants to know is how Ukraine took 3.8mcm on June 19th, 4.5mcm on June 20th, and 1mcm on June 21st. It appears Ukraine is claiming the gas supplies are reverse flow from Europe but this has not stopped Russia as The Pentagon reports more Russian troops at the Ukraine border and that they are preparing to send more tanks.

 

Since the cutoff on June 16th, Ukraine has 'taken':

  • 3.8mcm on June 19
  • 4.5mcm June 20
  • 1mcm on June 21

According to Russia's energy minister.

As it appears Russia sends gas to Europe (via Ukraine) and Ukraine holds on to it - claiming it is "reverse flow."

Ukraine remains open...(of course)

Ukraine is ready to resolve a dispute with Russia over natural gas transit through bilateral negotiations, state-run energy company Naftogaz said Monday.

 

"I believe that we will try to resolve the issue through negotiations," Naftogaz Chairman Andrey Kobolev told reporters.

But Russia does not seem in negotiating mood...

“Neither the situation nor the Russian position has changed during these days [since the gas cutoff],” Energy Minister Alexander Novak said June 19 in Moscow. “We are waiting for the payment for Russian gas.”

OilPrice.com explains the state of play...

In an effort to ensure the flow of gas to the West, Ukraine’s parliament is considering legislation that would allow the country’s gas transit and storage facilities to be leased as joint ventures with the United States or EU member countries. Under the proposal, Ukraine would have a 51 percent share and foreign investors would be offered 49 percent.

 

Ukraine is now enduring its third Gazprom cutoff since 2006, and is looking for ways to reduce its reliance on Russia for energy. Still, Kiev needs the income from delivering Russian gas to Europe and wants to make its transit system more reliable.

 

As a result, acting Ukrainian Prime Minister Arseny Yatseniuk told parliament on June 19 that the joint venture, if approved, would mean an unbroken flow of fees from EU gas customers as well as investment income. He added, “If Europeans join this company, Russia will not build Southstream.”

 

Southstream is a pipeline that Gazprom is building to ship gas through southeastern Europe, across the Black Sea and on to Western Europe, bypassing Ukraine altogether. That would deny Ukraine of any transit payments it’s been receiving from the West.

And as that discussion is underway, this is happening:

  • *U.S. ARMY COLONEL STEVE WARREN SAYS MORE EQUIPMENT MAY BE SENT
  • *PENTAGON SAYS RUSSIA PREPARING TO SEND MORE TANKS TO UKRAINE
  • *SEVERAL THOUSAND MORE RUSSIAN TROOPS AT UKRAINE BORDER: WARREN

“Russia has accumulated artillery at a deployment site in southwest Russia and we believe Russia might soon provide this equipment to separatist fighters” in Ukraine, Warren says

 

“It’s something that we’re concerned about”

 

He didn’t provide any estimate on numbers

 

DOD agrees with a NATO estimate that “at least a few thousand more troops” from Russia have been sent to Ukraine border, he says

And this is happening as Russian separatists accept the cease fire...

  • *UKRAINE SEPARATIST LEADER AGREES TO CEASE-FIRE THROUGH FRI.:WSJ
  • *DONETSK GROUP SEEKS TALKS WITH UKRAINE GOVT BY JUNE 27: IFX

Which makes one wonder, what happens on June 28th?