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Poland Says Russian Gas Deliveries Tumble By 45%; Europe To Launch Sanctions On Friday, Russia Will Retaliate
Yesterday, when Gazprom was supposedly "troubleshooting its systems", we reported that in what was the first salvo of Europe's latest cold (quite literally, with winter just around the corner) war, Poland complained that up to 25% of its usual gas deliveries from Russia had been cut. Russia indirectly hinted that this was also a result of Ukraine using "reverse flow" to meet its demands, with Europe allowing Kiev to syphon off whatever gas it needs without paying Gazprome for it. It also led Poland to promptly admit it would halt reverse flow to the civil-war ridden country. Fast forward to today when Polish financial website Biznes reports that things are going from bad to worse in Russia's energy retaliation war, after Poland claimed a 45% shortfall in Russian natgas imports as of Wednesday.
Not surprisingly, Gazprom has said that is not the case, which leaves two options: either someone is lying, or the Ukraine is quietly, and illegally syphoning off gas destined for Europe.
More:
Poland's listed natural gas group PGNiG noted Wednesday natural gas deliveries from the east 45% below the ordered level, the firm said in a Thursday press statement. Wednesday marks the third straight day when Poland claims to have received less gas than ordered from Russia's Gazprom. Poland claims that shortfall forced a shutdown of re-export to gas-strapped Ukraine and an increase in imports from other directions to compensate the loss.
"Under the Yamal contract, PGNiG has the right to collect volumes lower or in line with the maximal daily amounts contracted for particular entry points," PGNiG said. "Volumes ordered by PGNiG were below the maximal level - that is line with the contract. Nevertheless, they have not been realized by OOO Gazprom Export."
In order to make up for the missing volumes from the east, PGNiG claims to have launched supplementary gas deliveries via Lasow at the German border and via Cieszyn at the Czech border, the firm noted in its statement.
Additionally, on Thursday PGNiG launched natgas supply through the Mallnow point at the Yamal pipeline on the German border, PGNiG said.
A spokesperson for PGNiG, Dorota Gajewska, refused to indicate if the level of Russian deliveries constituted a reduction from any prior periods, reiterating only that delivered volumes are below the contractually requested level, she said in an interview for broadcaster TVN24.
On Wednesday PGNiG claimed that deliveries had fallen 20% short of order on Monday and 24% short of order on Tuesday.
The firm said it was "investigating" the reasons behind the delivery shortfall, in particular whether it is of technical or commercial nature, and said it was compensating for the volumes with imports from other directions.
On Wednesday PGNiG still hasn't received any explanation from Gazprom, the firm said.
Deliveries to PGNiG's clients are being carried out without disruption, and there is no need to tap undergroung gas storage facilities, filled to 100% of their capacity (around 2.6 bcm).
PGNiG's long-term Yamal contract with OOO Gazprom Export, dating back to 1996 and renegotiated in 2010, provides for annual natural gas imports of 10.24 bcm, drawn at Drozdowicze, Wysokoje & Polish points along the Yamal pipeline. The contract is based 85% on a take-or-pay formula. PGNiG will seek a gas price reduction during a renegotiation window that opens in November 2014.
So as the new balance of power is suddenly dawning on Europe, as is the realization that Putin does have all the leverage (as otherwise Gazprom would never suicide itself in a way as to show it can proactively cut European gas supplies, even if the recipient is a country that has been so vocally beligirent toward Russia as Poland), the Europeans have decided there is no point in waiting any longer, and as was blasted moments ago:
- BERLIN - EU DIPLOMAT SAYS NEW SANCTIONS AGAINST RUSSIA TO COME INTO FORCE ON FRIDAY
More from Reuters:
European leaders spoke early on Thursday and agreed to push ahead with a package of sanctions against Russia by the end of the week, due to its aggression towards Ukraine, the spokesman for British Prime Minister David Cameron said.
"This morning the prime minister took part in a joint call with several fellow European leaders; president (Herman) Van Rompuy, Chancellor (Angela) Merkel, president (Francois) Hollande and prime minister (Matteo) Renzi," the spokesman said.
"(They spoke) to discuss the subject of sanctions against Russia in the context of Ukraine and agreement to proceed with the implementation of the sanction package that was agreed earlier in the week."
Which means that the gloves are now fully off and Russia is content that it will be cold enough soon enough to give Putin even more of a first mover advantage, and thus negotiating leverage while the part of Europe, and all of Ukraine, shivers in the cold.
Sure enough:
- RUSSIA WAITS FOR SANCTION DETAILS TO DECIDE HOW TO RETALIATE
- RUSSIA WILL RESPOND TO NEW EU SANCTIONS: LUKASHEVICH
- RUSSIA SAYS READY TO RESPOND TO NEW U.S. SANCTIONS
And:
#BREAKING Russia has drawn up second set of anti-Western sanctions: Putin aide
— Agence France-Presse (@AFP) September 11, 2014
In other words, Russia's staggered gas reduction, which we predicted last weekend would happen momentarily, as it has, is not a retaliation but merely a side-effect. One wonders just how bad things will escalate to if in addition to its gas Europe loses, for example, access to Russian airspace, or worse.
And the full wrap of the most recent events surrounding Ukraine and Russia, via Bloomberg:
- EU to impose new Russia sanctions tomorrow, will lay out conditions for eventually suspending measures
- Russia says will retaliate against new sanctions, says they are “unfriendly policy”; may target cars, textiles: RIA
- Ruble falls to record vs dollar
- U.S. sees Ukraine as arena for geopolitical battles, Russian foreign minister says in interview to Itar-Tass
- Ukraine needs to regroup, strengthen army; must open way to NATO membership, Parliament speaker tells Fokus magazine
- Donetsk airport shelled by rebels overnight: Ukraine defense ministry
- Gazprom may face biggest decline in European gas revenue in five years; sales to EU, source of 40% of rev., forecast to fall >10% to ~$55b this year, co. officials say
- Putin orders war readiness test for East Russian regions: Interfax
- McDonald’s being taken to court by Russia’s consumer-safety regulator for allegedly understating caloric values, microbial contamination in products; suit delayed as chain defends calorie count
- Ukraine seeking to prevent Russian cos from getting licenses to run 3G networks in planned auction
Summary: tomorrow's latest round of sanctions and countersanctions should be interesting.
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"I'll have a blue Christmas without you"
"All I want for christmas is....gas"
Edit: usually the christmas dinner gives me plenty of that but that won't keep me warm. At least not long enough.
Poland has fell in line with the U.S. led NWO since the regime change foisted on it in 2010. The Polish president along with his cabinet was killed in a plane crash on a visit to Russia. There was a video of figures moving through the wreckage and the sound of gunfire shortly after the crash. Don't know if that vid can still be found or not but this explains much of why Poland is where it is. http://truth11.com/2010/04/17/did-global-elite-kill-polish-president-kac...
Even without that Poland has more than enough reason to hate Russia.
If Russia gets nuked by the US (god forbid) we will not have all that hassle about gas anaymore because there will not be any.
That's true, however Russia would be pleased to deliver some of its SS-18 Satan ICBMs to a place near you instead of the gas. Plenty of energy - for free.
Stock are in fact priced correctly, in fact 40% below where they should be now. I think the Dow should be about 21,000
It makes sense...cheaper and cheaper money flowing into stocks prices the stocks correctly with respect to the currency.
What the problem is the USD is valued incorrectly, it needs to fall around 40% and consequently Gold needs to be repriced in terms of USD up to $1,700 USD, for starters.
.
"Polish financial website Biznes..."
That sums it up pretty well, I'd say.
Next thing you know they'll be talking about goin' to Didneylann...
And here I was thinking to myself that Yellen can print gas.
As long as the game remains within the realms of sanctions and counter sactions we should see an eventual unravelling of the whole retarded financial system.
Not a bad way to bring the termite infested house down without bombing each other.
I don't think its ukraine messing around. I think Russia is making poland pay just as they should. When does the rest of europe get supplies cut for hopping on the white house bandwagon against putin?
It is getting worst in Germany supplies are falling 25% since this morning.
No problem, Frau Merkel doesn't need no stinking gas.
Link?
GAS is required for production (exports, production, GDP, Jobs) not just keeping the body warm.
Now whilst production has to cut back....maybe a country somewhere else will pick up the slack....stealing the business as it were, through the opportunities they just created themselves....hmmm
Nothing different than what Russia has been up to via vlad for past decade...
I am shocked, shocked that Russia would cut gas to their good friends in Poland!!!
How many Poles does it take to turn off a gas valve?
Just one!
We call him Polish Joke
his nick name is Donald Tusk, the head of the European Council
off course Gold Silver & Oil at new lows !!! what a farce
Do I have this correctly?
A primary resource producer, produces a resource, sells it for all the traffic will stand (admirable), then says where it can be resold?
Sounds like control-freakery to me. If you sell something THATS IT. You don't get to say squat about whose store it gets sold in or to whom.
So what sort of bone-fide trade partner does that make the Russian Federation?
depends on your contract with the seller.
Do you accept that two parties can enter in whatever contract they want, take any obligations they want? This is true liberalism right ?
in this case the buyer had agreed not to resell to 3rd parties what he buys, otherwise the price and other conditions would have been different
It has jack shit to do with "liberalism".
If you sell summat and take the settlement for the transaction, THAT'S IT! Deal done. This "second party agrees not to sell to a third party" may, or may not be true, but is more entertaining in a Marx Bros film.
How does the principal enforce such nonsense?
depends on the principal. some are... bigger then others. by force, for example
Entertaining idea. The principal sells something under conrtact for full market price and transfers the item receiving full reimburment.
Then decides that they want to call shots about final disposition of said item. Doesn't belong to them any more. They sold it.
To then act against the original recipient is counterproductive and damages the credibility of the producer and supplier.
Commerce is full of reselling restrictions.
Reverse flow is prohibited by Gazprom's contract. Many gas contracts around the world have similar reverse flow restrictions.
Care to substantiate how Gazprom is going to police that?
Other than buying the infrastructure and saying what they're told to say for example.
Not if contract says other...
Russia has always been reliable supplier.
Even during cold war.
Someone here is lying of course.
Poles covering for Ukraine disappearing gas (again)
according to contract Poland may vary its daily imports in a certain range and was not running at max for a while.
What has happened is that Poland asked Gasprom to increase imports but Gazprom for some reason did not increase the flow
Russia’s Sberbank mulls listing on Singapore Exchange
“We are looking for opportunities on the Singapore Exchange, using a special purpose vehicle, as we previously did on the European markets,” CEO German Gref said in an interview with local daily The Straits Times released on Thursday, adding that the bank is also considering placing bonds on the Asian markets.
“Singapore is the friendliest jurisdiction from any point of view,” he said.
European Council president confirms new sanctions on Russia (September 11, 17:32 UTC+4)
BRUSSELS, September 11. /ITAR-TASS/. European Council President Herman Van Rompuy confirmed on Thursday that the European Union will bring a new round of sanctions against Russia on September 12.
The EU will add 24 individuals to the list which blocks travel to the EU and asset freezes. Russian leaders and businessmen, as well as politicians in Crimea and the Donbass, will be added to the blacklist.
According to the official document, the EU will halt services Russia needs to extract oil and gas in the Arctic, deep sea, and shale extraction projects.
Three of Russia’s major energy companies and the country’s three largest defense entities will be restricted from raising long-term debt on European capital markets, Van Rompuy said.
Media sources suggest Gazprom Neft, Transneft, and Rosneft will all fall under Friday’s sanctions.
Gazprom Neft is the oil subsidiary of Russian gas giant Gazprom.
Transneft is Russia's state-owned oil pipeline company that exports all of Rosneft’s crude oil, and exports 56 percent of Russia’s total crude exports.
Rosneft, Russia’s largest oil producer was put on the US sanctions list on July 16 and later added to the EU list on July 29. In July, Russia’s largest independent natural gas producer, Novatek was also added to the blacklist which bans the export of hi-tech oil equipment needed in Arctic, deep sea, and shale extraction projects to Russia.
"BERLIN - EU DIPLOMAT SAYS NEW SANCTIONS AGAINST RUSSIA TO COME INTO FORCE ON FRIDAY"
The EU has a death wish, the pole dancer Mr Tusk in particular. But since they're all variants of Euro-socialists (old commies and fascists), reality goes right over their heads.
WTF does the EU expect from Russia after they pour wild allegations at Putin, keep imposing absurd USG mandated sanctions and haven't got the spine to admit that it wasn't Putin who shot down MH-17 but their very own puppet government in Kiev?
Obviously they want Putin to react, hopefully as violently as possible so there's no turning back. At the end of the day western economies are confident they can outlast Russia.
Western economies have no gold. They will be trampled when Russia and China choose.
I love the picture of the Polish gas station.
LOL. That guy must by Yats ... siphoning gas for Kiev
Ukraine and Poland doing what they're doing best - STEALING.
Natural born thieves, liars and anus stretched Zio-Nazi poodles.
Games theory, and in particular, "Tit for tat" dictates that for every negative (sanction) from Washington, Russia will respond in kind, and will only change to a positive, once the west does.
Winter's coming and and Russia holds the cards.
The days of USD dominance are done. The US has lost!
Dollar up and ruble down so suck it!
Time for Russia to cut off the gas. Let the EU pay the USA ultra-high prices for ocean-transported gas. In fact, Russia could even rail-transport gas to Mongolia and China! Let Europe freeze this winter and let the Germans, Poles, etc. see if they really want to continue with Obama's foolish policies any more.
This is called the Great Game being played by amateurs who give neither fart nor farthing about their constitutents freezing to death this winter that will be worse than the last, a pattern the promises to stay with us for the next 15 years.
Gold & silver fucking destroyed here on new sanction WTF?
"You'll get nothing and like it" seems like a suitable response at this point.
Overheard in a Polish furniture store: "Yes, this dining room set contains 75,000 BTUs and comes with a free saw..."
Here are three cards in Putin's Hand:
http://www.foi.se/Documents/foir_3688.pdf
https://www.rusi.org/publications/newsbrief/ref:A5331667D996C4/
http://www.worldsecuritynetwork.com/China-Russia-Other/dame-chkatroski-1/Russia-until-2030-Military-and-strategic-analysis
Time will tell. The economic sanctions will play havoc, forcing Putin to get aggressive, or capitulate.
Putin has no chance. Russia will break-up if forced too far.
O'Blame-uh gives me gaz.
Merkel and her inbred euro-trash morons give me gaz.
PPFFFFFFFFFTTTTTT!
All better now....
http://www.soundsnap.com/tags/fart
Europe had better hope that global warming does kick in starting now.
It's a good thing Russia has been building up the infrastructure in Siberia and the Far East. It will get a workout with all the trade switching direction from Europe to Asia.
If Putin retaliates by telling the EU that it's gold for oil/gas, I bet the US ponzibuck would turtle within 48 hours. The EU schmuppets will all run to retrieve their gold. What? No gold?
If Putin does not do such, it is likely because Russia and China are still feverishly acquiring more gold for their arsenals. This war could get very ugly. Very soon.
The picture is so accurate... try to drill a hole in one of those pipelines and see what happens. No that there is high pressure there or something.
They are actually panning to ban Beluga imports by Lidl.
So the EU grew a pair at last
Make the bitches pay in Ruble.
No Gold and no $.
This will force them to use SWIFT and buy Ruble from around the world.
This is a setup.
Russia will retaliate, and then Europe will blame Russia for all their economic ills.
The vote for an EU Army will come up again and be approved. The EU Army will directly impose EU solutions on the member states, and take the lead role in NATO, while the US retrenches following currency collapse.
Russia will be squeezed from the West, while China rises in the East.
The invasion never comes from where you expect. That is the lesson of history.
For Russia the year 2100 will more resemble the year 1100 than the year 2000.
and what is this: .....either someone is lying, or the Ukraine is quietly, and illegally syphoning off gas destined for Europe.....
The pipeline from Russia to Poland is crossing WHite RUssia and does not touch Ua....
How can Ua do it then?
My winter forecast: Cold and miserable in Europe. Warm and comfortable in Israel.
An American, not US subject.
The US will have another bout of "Where's daddy, mommy?" accompanied by "Where's Syria, mommy?"
How many Russians would sacrifice for Putin ?
How many Ukrainians would sacrifice for Porushenko ?
How many Germans would sacrifice for Merkel ?
How many French would sacrifice for Hollande ?
How many Brits would sacrifice for Cameron ?
How many Americans would sacrifice for Obama ?
And the winner is --------hint---the country that lost the most people during WWII and has the coldest climate.
Something to think about before attempting to corner a Bear full of gas and nuclear weapons
Word is that Gasprom says they have not made any gas flow reduction.
I just now here , probably someone already posted about this?
Kyiv stealing gas likely.
With Poles covering for them.
Even Pollacks not that clueless.
Both serious lack creativity in real.
Obbama is trying to exterminate European DNA from the face of earth by making them fight each other. African revenge on European slavery.
Israelis the puppetmasters of USA are trying to punish Russia for their ancestors 'persecution' (because banking and lending is their rightful job)