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Ukraine Halts Russian Gas Purchases After Price Talks Fail
It has been a bad day for deals and deadlines all around: first Greece is about to enter July without a bailout program and in default to the IMF with the ECB about to yank its ELA support or at least cut ELA haircuts; also the US failed to reach a nuclear deal with Iran in a can-kicking negotiation that has become so farcical there is no point in even covering it; and now moments ago a third June 30 "deal" failed to reach an acceptable conclusion when Russia and Ukraine were unable to reach an agreement on gas prices at talks in Vienna on Tuesday. As a result, Ukraine is suspending its purchase of Russian gas.
According to RT, Russian Energy Minister Aleksandr Novak and Ukraine’s Energy and Coal Minister Vladimir Demchishin both admitted to reporters that the negotiations had born no fruit. Demchishin added that there would be a new round of talks in September.
Meanwhile, Ukraine’s energy company, Naftogaz, will stop buying gas from Russia as of Wednesday, July 1.
“As of June 30, 2015, the agreement between Naftogaz and Gazprom runs out, and conditions for continued supply of Russian gas to Ukraine have not been agreed upon; Naftogaz will no longer be purchasing gas from the Russian company,” a press release by Naftogaz said.
The Russian minister seemed unhappy and said it was politically motivated and there were no grounds for it.
So what will prevent Ukraine from simply siphoning off Russian gas transiting its territory for Europe? Nothing, except its word:
Naftogaz gave assurances that “the transit of Russian gas through Ukrainian territory to Gazprom’s European clients will continue in full, according to contracts agreed.”
Russia will not increase the discount it has offered to Ukraine on gas purchases, Novak told the media. “The price of $247 [per cubic meter of gas] is completely uncompetitive, that is why we are very surprised that Ukraine wants a much lower price – it is out of line with the current market environment.” He stressed that the price “is not subject to correction.”
Ironically, even as Kiev will begin counting down the days until the winter, Russia will continue direct supplies of gas to Ukraine’s southeast, the Donbas separatist region which has been all but forgotten by the Ukraine capital due to the ongoing civil war on location. It has been doing so since February, when Kiev claimed that it could no longer supply gas to the conflict-torn regions due to damaged pipelines.
While Gazprom insists that Kiev is still responsible for paying for the gas that goes to Donbas, it probably should not hold its breath.
Incidentally, just like the Eurogroup launched shock treatment on Greece with capital controls first and shortly deposit haircuts, all in order to force the Greek government to resign by peaceful means or otherwise, the Kiev government, just as broke and about to default on its own bonds, may have just lit the fuse under its own cabinet, because while nobody needs heating in the summer when it is hot, in 5 months it will get very cold and as Greece has shown a desperate people are unpredictable.
Should the gas cutoff continue well into the cold winter, it just may be the catalyst that forces the revulsion against a regime that has so far done the bidding of the US State Department, if not so much its own people.
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4 months of bluffpoker...
or, they’ll buy it from Germany who buys it from Russia but with a european subsidised discount.
Winter is coming!
But it won't be snowing.
Sort of like choosing to not purchase oxygen isn't it?? Winter is coming, if Ukraine does not buy do they then not allow transit to EU?
Did they decide to stop stealing it too?
lol, they can buy the replacement gas from John McCain, just gotta wait two more years!
The US Taxpayer will foot the bill, while John McCain profits off of the transaction. The Ukrainians will have to sell their kidneys for the privilege.
What's this shit I hear about pipelines around Ukraine?
Poland could start selling them NATGAS - thanks to their new LNG port.
at two/three times the price, that they never pay for?
so gift with big share siphoned to Kiev mafia pockets? (while prices double to citizens)
kinda explains why polish jokes...
Ukraine buys almost all its energy (natural gas) from Russia.
Because of the recent disagreement between Ukraine and Russia, Russia is raising the price of natural gas it sells to Ukraine.
Ukraine is almost broke and can’t afford the increase in the natural gas price because it would be forced into bankruptcy.
President Obama just announced the United States is giving Ukraine $1 billion to assist in paying for the higher priced natural gas it buys from Russia.
So, the United States is actually giving Russia $1 billion because in reality, the money is just passing through Ukraine.
The first question: Has Putin figured out a way to raise the price of his natural gas sales and make the U.S. taxpayes pay for the increase?
If this analysis is accurate, Putin just got Obama to pay him $1 billion by holding a press conference and trucking some troops across town from the Russian Navy base in Ukraine.
As Putin just quietly builds the Turk stream pipeline (Which also brings Greece into the Eurasian Silk Road sphere) and then cut out Ukraine completely. It will take 2-3 years to complete and Kyiv might cause minor inconveniences in the meantime but, in the context of history, that is nothing. You want Ukraine? It's your.....
Putin is a true homo. The boy keeps getting schooled by Obama. You think he would have learned by now. Don't mess with Barry.
McCain in the Ukraine
https://www.youtube.com/watch?v=zmIUm1E4OcI
Looks like if the fat neo nazi chocolate king psycho zio bastard wants the gas, he's going to have to pay for it.
Winter is coming, if Ukraine does not buy do they then not allow transit to EU?
-------
Fuck the EU! (Washington, Victoria Nuland).
Actually, were having some serious heatwaves here in Europe with 40 degrees celcius and plus, that’s about 104 farenheit, which is pretty heavy for us with our moist climate.
that means the powergrid is streched to it’s max by airco’s so energy prices will start to jump pretty soon.
And gas is a big energy contributor to Europe.
Hmmm, do you realy live in europe? Here in belgium there are not as many airco's per household as in the hot parts in usa. And i'm in the airco/refrigiration sector. And also, with al those solar panels there is actualy a oversupply during the day of electricity. So not mutch need for gas to power gas turbine's "peak shavers"
Read as Nuclear Winter is Coming.
Napoleon and Hitler were forced to admit that the winter - it is the best friend of Russia.
Give me a DISCOUNT or else I'll . . . .
FREEZE !!!!
well, maybe I will just ATTACK CRIMEA instead.
Yes, the Germans or Poles or Baltics will buy gas and then using American money given as support for Kiev, sell cheap to Kiev. Russian gas will flow to Kiev through the third party sale. This has been common off and on for some time.
I feel sure that billions of American tax payer money is going to Kiev under the radar. To pay for the war, the armament purchases, to subsidise food and to pay third party gas sellers to Kiev. Without a direct American money line to Kiev, a total default and collapse would have happend last winter. How the US gets money to Kiev is probably in the CIA and Pentagon black budgets, worth a collective 100 billion a year or more.
Petrodollars finance bank liquidity and what I see is the U.S. blowing so much printed paper on forcing a hegemony on global energy prices.
$100 BILLION on a bunch of useless nazi methheads whose "leadership" lost a lot of gold.
The US oil boom triggered a meth epidemic.
Meth is almost synonymous with white supremacy. Hitler himself was addicted to that thing.
Ukraine has had some very rabid violent racists. One here during the 90's killed Bill Cosby's son Ennis on the 405 freeway.
Lots of tweaker garbage display the Confederate Flag- notice the piss poor timing to bring up the "historic" sentiment of that image rigiht after a massacre of a few nice black people in a church in South Carolina.
The gunman had issues with meth and cocaine. But either way, it's probably meth.
Meth triggers psychosis, they're literally homo sapiens with rabies when they come down from their high and that particular drug has been affiliated with issues.
ALL of the drugs now that don't come from any legit source is probably going to be laced with that drug becuase it's cost effective. It's just as gross as using high fructose corn syrup as a cost effective preservative and sweetner in our foods.
So with that being said, what are Wall Street traders doing? Coke, not so much. But Mollies, which is supposed to be ecstacy or "amphetamines". But for cost cutting reasons - (as a business typically conducts (legal and illegal)); they stuck meth in it.
So the traders on Wall Street who fry their brains on chemical cocktails they haven't quality controled; they're tweakers too!
So basically, there might be two living brain cells in the finance sector, and they're called Beavis and Butthead.
The two other living brain cells located on K&J lobby and PR Streets are referred to as Cheech and Chong.
But the psychotic part of this recreational mind candy episode explains irrational decision making and horrible judgement.
So now we have $1 trilion petrodollars recycling with some banks now? Is that all?
We are being robbed for the benefit of Ukraine trasn (sorry, this is the way I personally see that country now) so the banks can use $1 trilion in petrodollars to like, recreate housing ponzi scheme.
The City of L.A. is gentfiying parts of Midtown where day laborers (illegals) are picked up for work.
They call it "gentrification". Not like these Mexicans are going to be afford to live anywhere near there.
But it's okay. If your rent exceeds a certain part of your income, you qualify for food stamps anyways!
It's a sicko shady parasite menage a trois!
"Slow business?"
"Fuck you. Pay me."
"I'll take Goodfellas quotes for a thousand, Alex"
You payz me know or you'll freese later
Russia will know if gas is being stolen, it's easy to calculate. Then things get interesting.
?#Ukraine? presumably unhappy with price of reverse flowed gas from ?#Slovakia? complains to the ?#EU? that #Slovakia has broken their contract with ?#Gazprom? by reverse flowing gas to #Ukraine (themselves)... WTF? Can't make this shit up.
http://sputniknews.com/business/20150630/1024020407.html#ixzz3eX0nuhgy
Dude, you must be a composer. Why are you sharp-ing (#) everything?
Sharp-Ukraine... sharp-EU... sharp-Gazprom...
I suspect you ain't no 12-year-old-SHARP-girl-sharp? ;-)
#Looney
P.S. If you see Mozart, please give him a sharp-hug from me, JC Juncker. He knows me as #JC.
P.P.S. The rest is +1! ;-)
Wow, and here I am thinking the reverse flow was actually cover language for diversion. So Slovakia actually wants payment for its gas sent to Ukraine? What are they, some kind of dirty capitalists? Maybe Ukraine better figure out how to get back on Russia's good side before winter.
Let's hope the U.S. doesn't poke the bear in the eye...
http://www.globaldeflationnews.com/the-end-of-the-line-for-global-deflat...
why buy it when you can just STEAL it.....excuse me, inadvertently misappropriate it
yeah, but if Kiev keeps stealing it, Russia will just cut it off physically, so it cant be stolen. There would be absolutely no point for Russia to give it for free. So this Kiev move is just a silly tantrum of a little child. And I mean this already happened more times: Russia just cut off all the gas, so that EU had to force Ukraine to pay, so that they can receive their gas. I know that because it happened in winter once (and my country receives Russian gas), suddenly Russians just cut the gas off because of the naughty Ukraine and it was a huge problem. We had some gas reserves but not for long, and the same went for Germany, Austria etc. Russians can just repeat this scare to wake the EU up.
Somebody has to pay for Ukriane Pipeline Inc. board member Hunter Bid*n's coke habit.
He already OD'ed.
No that was his brother who died of cancer. My guess is that might have been a warning to Joe.
IOW... ALL the Russian gas flowing through their pipes will now go to the EU, and not be siphoned off, right?
Good one.
That might be the point that Gazprom is trying to emphasize.
Isn't that what that Heidi hair old bitch was doing and then she went to jail? Skimming gas.
Russia can just send it through to north stream. Isn't there one that also go through Belarus? It looks that way. just install bigger pipe through Belarus.
http://www.eegas.com/fsu.htm
Yulia is greatest suka Listen closely...there are US prosecutors testimony here...
https://www.youtube.com/watch?v=clgN_7HHqbw
Her sometime off/on partner in crime Lazerenko ended in US prison...
https://en.wikipedia.org/wiki/Pavlo_Lazarenko
he much less criminal than her in real
Sorry, but Belarus transfer then goes through Poland.
It´s better for Russia to do without Baltics, Poland and Ukraine. Also let the Balkans pay for their own pipelines or the game starts again.
And that's the reason for reducing that flow to an absolute minimum by 2020 hence Nordstream 2.0 and Turkish stream. USSA and their EU vassals might try to block the Turkish one, but it will be very difficult to block the Nordstream upgrade as that one is under sea so pipe ownership question is moot. What USSA and their EU vassals are trying to do is bring Qatari gas to Europe instead of the Russian one, but Assad is still a problem... the point is that USSA/EU wants most of the Russian transit gas to continue going through Ukraine (due to various reasons) even after 2019, if the flow stops they will inherit a pile of scrap metal...
The part that is siphoned off is now called "reverse flow" from Europe back to Ukraine. Don't know if it is ever paid for, but what the heck.
It'sa fairly easy decision during the summer months.
Almost as easy as the MSM headline that will appear in fall blaming the Russians for cutting off the gas just before winter.
I like the spin that Ukraine is "stopping gas purchases" as opposed to Russia is cutting off all sales to Ukraine, which is the truth.
That's not true - it's indeed Ukraine who is refusing to accept the price Russia has offered, they demand $100 discount... so Russia is ready to sell gas to Ukraine at MARKET price, which is very logical... one needs to ask what incentive at this point Russia has to offer ANY discounts whatsoever to the Ukrainians?
Normal business in the western world. Pay in cash, the price is cheaper. Pay in 10 days, you get a discount.
The Ukraine never pays, plus they like shelling and murdering ethnic Russians in Donbass, so they can pay the top price.
Would only direct the saved money into civil war.
Stopping the gas will bring civil unrest, but not for long. Only some lampposts to be decorated in Mussolini-style.
The truth is Ukraine can actually no longer afford to pay for gas... so essentially for them it really does not matter if they get a $40 discount or a $100 discount, they can only afford to pay nothing at all...
well then the EU will have to pay for them. As I said, Russians cut the gass of completely several times in the past, once even in winter and the relevant EU countries and their politicians (including my country) got scared as hell. We (EU) have no other way to receive our energy, especially in winter.
Of course the EU will have to pay for all of it, they are already paying a HIGH price for this mess! That's what Soros and the like wanted from the get-go... all part of the plan, maximum gain at minimal expense... that's how the parasites work.
Ukraine might have to pry the concrete dome off Chernoybl to get any heat this winter.
Why pay for it when you can just steal it
Ukraine shoots itself in the foot.
If the world wasn't so tragic, it would be hilarious.
The US will fight the Russians to the last Ukrainian.
perhaps not, thousands of Ukranians are now defecting to the other side:-) Including one Ukranian general, lately. And this general told journalists that almost all high-ranking officers in the Ukranian army are now thinking about going to the other side. Plus as I sad: thousands of normal soldiers as well. I think with the bankrupted Ukraine (where the soldiers do not even have enough to eat - and I am not kidding), most soldiers will go to the other side in time, just to get something to eat. Pathetic, isnt it.
You can see this in a lot of videos. Most of the Ukrainian soldiers are very poor because they are too poor to escape the draft. They have little food and when they get in the army it is even worse. They are starving.
There are plenty of videos of Ukie conscripts being treated well and humanely by DPR and LPR. DRP and LPR is rougher with Azov nazis and the Ukie National Guard.
DPR and LPR realize the conscripts do not want to be there.
This is former UAF Officer, switched sides is a Dnipropetrovsk native, not the western Lviv polack crazies
https://www.youtube.com/watch?v=4-dXBOMkgKY
http://fortruss.blogspot.com/2015/06/increasing-numbers-of-ukrainian-arm...
Give the junta free GAZ in an ICBM fired into Kiev. That'll keep those bastards warm.
Luv Vlad
Ukraine has been "got any spare gas-ing?" its Eastern European neighbors for over a year. Hungary and Slovakia must be tired of Petro's mooching
Russia will just put the European purchase in the pipe and let them deal with Ukrainian pilferage. If there is any problem -- and given the recent extension of the EU sanctions -- I wouldn't be surprised if Russia demands prepayment from the EU a-holes.
Hell, I practically forgot about Ukraine. So is it sort of a de facto two nation set up now?
I practically forgot about Fuckyoushima and Yemen too. With all this Grexit, Frexit, Spexit talk I almost forgot about Corexit too.
How's ISIS?
Oh, thanks for askin' thamnosma. Isis, she's doin' fine, just fine. Beheaded a few gals the other day for witchcraft, but other than that, pretty much business as normal.
Yeah, because if the temperature inside the home is the same as outside, why stay inside?
Sound like a buncha Southern Californians. Enjoy the surf, beach-ball, fire on the beach at night, big cooler of Corona with lime, lots a big false titties jigglin' about in skimpy bikinis, smores, and some good doobie.
Think of how lucky they are to get out of the house!
Yeah and that lovely So Cal sea spray with a little Fuki mist. Not so sure all that MOX is good for your surfboard though.
The New and Improved MOXWAX
"A shine and grip you'll think melted you to the board"
Langley could cut energy flows to Western-Europe in an attempt to draw Europe further into the Ukrainian war since they are cut off in a war zone where shit is to happen anyways, making it very cunningly look like a 'small coincidence' blaming East Ukraine for Europe’s damage. Winter time will be the right moment to do this, tactically speakin, inflicting maximal damage on Europe. So this is a very dangerous development for Europe’s energy security. With so many pipelines going trough the Ukraine a 'small coincidence' is about to happen. About big & small coincidences https://www.youtube.com/watch?v=2d4wPaBNryA
Does this mean Ukraine is going to default?
No! It's Bush's fault!
Bitchez!
No. They are "bundling their payments." They will pay all five years' payments ..... in five years.
It's kool. This is the way International High Finance rolls so get with The Program.
This is what happens when you fuck with mother Russia.
Good. It's time that Russia stops appeasement policy toward Ukraine and the west without leveraging its interests.
I think yesterday's announcement by Poroshenko that there are over 200 thousands of Russian army in Donbas did not help negotiations. Even western observers tried hard but could not confirm it unless Russia developed invisible soldiers.
Poroshenko himself supervised ATO soldiers in their latest cleaning operation to mope up after terrorists in Donetsk, here is the picture;
https://pp.vk.me/c621927/v621927937/2a504/mABs1r_z154.jpg
More balanced take on Ukraine, what's is all about I found at:
https://contrarianopinion.wordpress.com/2015/01/18/ukraine-no-country-fo...
Ukraine has never been a sovereign nation.
Neither is the USA, as of yesterday.
The true state of Ukraine's Economy will reflect the gas imports which are down almost 30% over the last 18 months.
I know a bit about this country as i was importing Fertilizer for several years and they were unable to meet supply shipments and i had to look elsewhere.
I was also importing Transformers for Power Grids and again i couldn't depend on the suppliers.
We're not hearing the true state of affairs regarding their economy.
Mind you i am sorry about this as the companies i traded with were both South-East as if it had been Kiev then i would have placed my own sanctions on those Pikers.
I hope in the near future i can do business again as they are good people. In the meantime i can only send a quarterly donation which might help just a few families.
Remain Strong Good People of the Donbass. May God be with you against this Vichy DC/Fascist Purge.
Does the Ukraine have any coal?
actually they do but it;s all on Eastern Ukraine, haha
They made cheap fertilizers of cheap natural gas from Russia. You're not doing business with them any time soon.
Pretty balsy now that its July, but come November and it starts to get chilly those balls will do some shrinking.
Maybe trouble does come in threes...
Suspending their purchase, or suspending payment of their purchase because they're still broke?
What'd eye miss?
Just agree to pay then never pay. Hell we've been doing it since 71
What a novel approach. Here is an idea, perhaps Ukraine can treat EU trucks in transit same like Russian gas in transit, take like 10% of their load and nobody will get any wiser...
Russia should just cut off all gas going to Ukraine, and tell the EU "sorry you backed this mess in Kiev, we need to be sure our gas is not going to be stolen"
I know, Putin would never sign off on that as it would spoil Gazprom's credibility, but gee it would make me feel good if he did.
Mama its very cold
Ok I will go get some wood from forest
----
Mama there is no food, I am hungry
Ok wait for an hour, I am going to market.(to prostitute)
Naftogaz, will stop buying gas from Russia as of Wednesday, July 1
for the simple reason that Russia demands to be paid in cash up front,
and the Kiev deadbeats are broke.
the best way to put ukrain in eternal debt is to
1) tell ukrain rulers to stop buying gas from russia
2) offer a loan
3) tell them to use the loan to buy most expensive gas from the west
oh forget to mention one more way to be used in the future - give loans to ukrain to rebuild infrastructure and then to buy weapons to destroy it
its the kosher way
soros and goldman will be happy