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Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine

OWoN: Be in no doubt, as Russia deals with this defaulting Ukraine, consequences will ripple in the Forex markets.

Let's see how this game of chess gets played. Either this is a short term exchange where Europe is expendable between America and Russia or it leads to something worse. Ukraine is being sacrificed as a pawn. And the real interesting thing to watch is the role of China in coming days or hours.

Stay tuned, this is the countdown to an endgame scenario with the likes of gold and silver manipulation thrown in for good measure on the Comex and the real blow-back to derivatives and the American banking system.


Russian Prime Minister Vladimir Putin, left, speaks to Gazprom chairman Alexei Miller during a meeting yesterday


Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine

  • Gas prices rise in London
  • Bulgaria reaches 'crisis' point

Mail Online
By Robert Lea
30 October 2014

Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated.

This morning, gas companies in Ukraine said that Russia had completely cut off their supply.

Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.

Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine.

Dmitry Medvedev and Vladimir Putin
on the slopes last week. Putin ordered 
Gazprom to cut supplies to and through
Ukraine by around three-fifths
Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.

The European Union in Brussels called the sudden cut-off to some of its member countries 'completely unacceptable'.

The EU demanded the two sides reopen talks as the row immediately sparked fears of gas supply shortages and rising energy prices in the UK.

The UK is suffering one of its coldest nights this century with temperatures plunging to as low as -10C.

Though Britain is one of Gazprom's largest importers - relying on the company for some 16 per cent of consumption in 2007, according to The Times, the gas is supplied through a complicated swap scheme that means supplies themselves may not be affected.

Prices, on the other hand, rose during trading in London today.

The dispute, coupled with Israel's military operation in Gaza, also pushed oil up to a three-week high of $49.91 in New York yesterday.

Russia, whose main export is oil, stands to benefit from a recovery in prices.

'Without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities to the European Union, gas supplies to some EU member states have been substantially cut,' the EU said in a statement.

'The Czech EU Presidency and the European Commission demand that gas supplies be restored immediately to the EU and that the two parties resume negotiations at once with a view to a definitive settlement of their bilateral commercial dispute,' the presidency and the Commission said in a joint statement.

They added that the EU would 'intensify the dialogue with both parties so that they can reach an agreement swiftly'.

Overnight the Russian Prime Minister Vladimir Putin ordered the state energy giant Gazprom to cut supplies to and through Ukraine by around three-fifths amid accusations its neighbour has been siphoning off and stealing Russian gas.

Ukraine says the Russian move has been prompted by payment and price disputes, a row between the two that has become almost annual.

The effects of the dispute on the rest of Europe however is stark, said Ukraine's main gas supplier.

Around 80 per cent of the gas European Union countries receive from Russia comes through Ukraine.

While Germany and France are much more exposed, it is reckoned in some estimates that 15 per cent of Britain's supplies come from Russia through pipelines into the UK's east coast.

'They [the Russians] have reduced deliveries to 92million cubic metres per 24 hours compared to the promised 221million cubic metres without explanation,' said Valentin Zemlyansky of the Ukrainian gas company Naftogaz.

'We do not understand how we will deliver gas to Europe. This means that in a few hours problems with supplies to Europe will begin.'

Wholesale gas prices have already risen on the back of the rallying price of oil, up 50 per cent in the last fortnight to more than $48 a barrel on the back of Middle East tension over Israeli incursions into Palestinian-held Gaza.

The dispute stokes fears Britain is overreliant on imported gas. North Sea stocks are dwindling, though initiatives are in place to build the Langeled pipeline from Norway, improve underground long-term storage facilities and receive liquefied natural gas by ship from Africa and Asia.

Eastern and central European countries are already reporting supply problems, including the Czech Republic which has the current presidency of the EU. The EU as a whole depends on Russia for 25 per cent of its gas supplies.

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4 comments :

  1. This is very interesting.....yesterday Russia said that they are ready to sign - they want just EU warranty that Ukraine will pay as they promise - this was only Russia condition, price was agreed on before.

    ;;;;;;;
    Now those who are interested that the deal will fail are not called Russians - somebody else from the land of Victoria No-Land and Israel.

    ReplyDelete
  2. Also,

    thing is this Russians know their history - basically we can not say it that much about majority of Americans and EU ....

    (Just think about Jesse Ventura what he said about Vietnam - publicly - many listened and will take it as a history story.....two main points about Vietnam war - Government lied and 55 000 US soldiers died. How do you think Vietnames would say that story?

    That means that Russia knows very well that last 135 years or what Americans and West with Rottenchild tried again and again to get into Russian gold and natural resources - That means that at the break of century they were on Russia via money war then, WW1, then Bolshevik - West revolution - which did not work well by the American - West plan, because once Bolsheviks got into power they decided to keep power themselves and not to share it with West so then West had to come with other war on Russia WW2 - it did not work either though Americans worked with NAZI hand to hand and after WW2 they did all possible to set NATO against Russia - till these days.

    Russia knows that West does all possible to destroy Russia last century plus - they know that they have to go all the way. They learnt that co-operation with West is impossible as proven today.......

    Remember what Churchill said, * You can count on Americans to do the right thing, after they try all other options - it means all crime and lies and tricks...*

    ;;;;;;;;;;
    Russians know clearly that Americans will try again and again and again....this generation, next generation again and again....

    ;;;;;;;;
    So what should Russians do with West?

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  3. One of the aims behind the formation of the EU and NATO was to avoid another war in Europe. Isn't it ironic that the way to avoid another war now is for the EU and NATO to break up?

    ReplyDelete
  4. Crisis averted? Did Cameron agree to fork out the money to the EU?

    Thank You US Taxpayers: Russia-Ukraine Agree Terms On Gas-Supply Through March

    http://www.zerohedge.com/news/2014-10-30/thank-you-us-taxpayers-russia-ukraine-agree-terms-gas-supply-through-march

    ReplyDelete

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