Wednesday, July 30, 2014
 
Follow sptimesonline on Facebook Follow sptimesonline on Twitter Follow sptimesonline on RSS
MOST READ



PARTNER NEWS



BLOGS



OPINION



WHERE TO GO?

The Romanovs in St. Petersburg

History of St. Petersburg Museum

Small Tragedy, Fatal Passion

Rimsky-Korsakov Apartment Museum

 

  Print this article Print this article

Gazprom Threatens To Cut Off Ukraine

Published: March 12, 2014 (Issue # 1801)



  • Gazprom remains the EUs dominant gas supplier, supplying about a quarter of its gas consumption, however only about 50 percent of this gas transits Ukraine.
    Photo: Sergey Porter / Vedomosti

Gazprom has threatened to cut off gas supplies to Ukraine unless overdue gas bills are paid. On Mar. 7, the deadline for payment of Februarys gas supplied to Ukraine, Gazprom CEO Alexei Miller said the debt totaled $1.86 billion and issued this warning: Either Ukraine makes good on its debt and pays for current supplies, or there is a risk of returning to the situation of early 2009.

In 2009, the Russian state gas company cut supply to Ukraine for about ten days as a result of a politically-charged pricing dispute. This crisis led to gas shortages in a handful of central and eastern European countries reliant on Russian gas flowing through Ukraine and accelerated European attempts to diversify its gas supply and supply routes.

Since that time, however, much has changed in the gas trade between Russia and the EU. Though Gazprom remains the EUs dominant gas supplier, supplying about a quarter of its gas consumption, only about 50 percent of this gas transits Ukraine, compared to about 80 percent at the time of the 2009 crisis.

EU Energy Commissioner Guenther Oettinger pointed out that EU countries are now required to have a months worth of gas in storage and that these storage containers are relatively full due to this years mild winter, Reuters reported.

Were in a much better position than we were five years ago, Guenther said.

The gas trade has been a major point of contention between Russia and Ukraine for many years, but it seemed a mutually agreeable, though delicate, solution had been achieved a few months ago.

Following Ukraines withdrawal from the Association Agreement with the EU in December that sparked the initial protests in Kiev, Putin and Yanukovych struck a deal that saw Gazprom granting Ukraines state energy company, Naftogaz, a significant gas price discount. The deal, which lowered prices from around $400 per thousand cubic meters to $268.5, was to be renegotiated every three months.

On Mar. 4, with the first three months of the agreement coming to a close, Gazprom decided not to renew the discount.

During a meeting between Gazprom chief Alexei Miller and Russian Prime Minister Dmitry Medvedev, it was announced that starting April, Gazprom would raise gas prices back up to the levels in the existing contract, the same contract that Yulia Tymoshenko had signed in 2009 and resulted in her imprisonment.

Putin, during a news conference on the same day, claimed the decision to raise prices was motivated by economics, not politics. They failed to pay off the debt, I think its $1.5 billion as of today and if they dont pay for February its going to be $2 billion. So if you dont pay, then lets go back to regular prices. This makes perfect commercial sense. This has nothing to do with the situation in Ukraine.

Pages: [1] [2]






 


ALL ABOUT TOWN

Wednesday, July 30


SPIBA continues their series of Look@It tours, which focus on the success stories of major brands in the St. Petersburg market. Todays event will focus on the Gorky Golf Club and will also be held there. For more details visit spiba.ru



Thursday, July 31


Develop your leadership abilities during a lecture by famous Russian author and coach Radislav Gandapas. The event starts at 9 a.m. at 5 Lodeinopolskaya Ulitsa. The price for entry is 20,500 rubles ($570).


Relax and enjoy a Parisian atmosphere with some romantic and laidback jazz tunes during the Night of French Music at Lenny Jam Cafe, 63 Ligovsky Prospekt. The entrance fee is 250 rubles ($7).


The Womens Business Club is hosting a Beauty Brunch where participants are invited to discuss the latest news in the beauty industry and listen to lectures by professional stylists in the business.



Friday, Aug. 1


Bikers from all around the world will gather to take part in a parade, extreme shows and rock concerts during the International Biker Festival that revs its engines today and runs through Aug. 3 near Olgino Hotel, 4/2 Primorskogo Shosse.


The Peter and Paul Fortress will be turned into an open-air cinema today and tomorrow as part of the 5th International Short and Animation Film Festival. A huge screen across the fortress walls will air short films non-stop with board games, photo sessions and other activities also on offer for visitors. For more information, visit www.opencinemafest.ru



Saturday, Aug. 2


Gatchina Palace Park Museum will host its second annual Night of Light, an impressive audio-visual show across the night sky. Tickets are 600 rubles ($16).


If graphic design is more your thing then check out Illustration Day, where you will be able to visit an exhibition, attend lectures by professionals and even show experts some of your own work. The event starts at noon at Zona Deystvia, 73 Ligovsky Prospekt. The entrance fee is 350 rubles ($10).



Sunday, Aug. 3


History lovers shouldnt miss the chance to see reenactments of World War I battles in Pushkin at noon. Besides exciting war scenes, visitors can enjoy live music, historical costumes, an equestrian show and a fancy-dress parade starting from the Moscow gates.


Garage Sale, the popular and growing flea market where nothing is priced over 500 rubles ($14.11), starts today at noon in Loft-Project Etagi, 74 Ligovsky Prospekt. Be sure to get in early to score a bargain. Entry costs 50 rubles ($1.40)



Monday, Aug. 4


Continue the working week with a calm and steady mind with a free yoga lesson at 7 p.m. in the Bukvoed store at 23A Vladimirsky Prospekt.



Tuesday, Aug. 5


Visit The Romanov Dynasty doll exhibition today, where more than fifty porcelain dolls depicting Russian rulers, and made by Olina Ventzel, will be on show. The exhibition continues through Aug. 31 in Sheremetyev Palace, 34 Fontanka Naberezhnaya.



Times Talk