I see that the Russian energy company Gazprom has reducedgas delivery to Europe in connection with a business dispute with Urkraine. A lot of thoughts come to my mind, but I have decided not to comment at this point. What do you all think?
Gazprom reduces gas volume supplied to gas transmission system of Ukraine as prescribed by Russian customs service[/align]
Today OAO Gazprom has received a letter from the Russian Federal Customs Service (FCS) on the results of supervision of customs clearance procedures of natural gas exports to European consumers. The letter states that natural gas siphoning in Ukraine may result in reduction of Gazprom"™s export earnings and breach of customs legislation.
The Russian FCS ordered Gazprom to take immediate measures for optimizing the modes and routes of natural gas supply to European consumers, as well as other means for customs and export legislation adherence.
In this regard Gazprom has decided to reduce gas deliveries to the gas transmission system of Ukraine by 65.3 million cubic meters which equals the amount of gas siphoned in Ukraine from January 1 to January 4, 2009. A relevant cable message was sent to Naftogaz Ukrainy. In the message, Gazprom urges Naftogaz Ukrainy to compensate the equivalent amount of gas by supplying it to the western border of Ukraine before 10.00 January 6, 2009 from the Ukrainian company's resources. In addition, Gazprom demands that Naftogaz Ukrainy take prompt measures to secure uninterrupted natural gas transit via Ukraine pursuant to the conditions of the existing contract on the volumes and terms of Russian natural gas transit over 2003-2013 period.
Responsibility for potential changes in the natural gas transit regime and subsequent reduction in the amount of supplies to the European consumers stays with Naftogaz Ukrainy.
What I read indicated that Ukraine is the main conduit of Russian natural gas to Europe. Ukraine is supposed to be transhipping the gas, but they have been hijacking a bit of this gas due to a dispute with Russia over pricing. What I read said Russia was throttling back the gas they put into the pipeline . . . and this is reducing the quantity of gas transhipped to Europe. This is creating a lot of nervousness in Europe, as they are experiencing a sharp cold snap this week and consumption of natural gas is high.
Some of the behind the scenes issues involved is that there has long been a call for diversification of sourcing of natural gas in Europe . . . but little action has been taken along this path. Instead, the European nations have become increasingly dependent on Russian natural gas. One piece of information I saw suggested there were some manipulations of European decision makers to advocate increased reliance on Russian gas sources (this may have been merely the familiar practice of hiring lobbyists, as we know this practice in the US).
I find this a little ironic. The US is the big, bad, ugly nation with a hidden agenda to subjugate Europe . . . but now it is Russia and its gas supply that has Eurpope by the short and curlies and is twisting/tightening their grip.I'm just feelingalittle bit of 'schadenfreude' I guess.
Today I understand Gazprom has totally shut down natural gas transport through Ukraine. This really throttles many EU nations's energy supplies. This is much more serious than similar disputes in 2006. Very interesting. I wonder how the EU views Russia today? Some interesting "exploits" in Georgia back in August, now this game of chicken being played with most or Europe's natural gas supply during the coldest period of the year (not just as a seasonal consideration -- right now Europe is in a deep cold snap). What will happen? Will Russia invade Ukraine? Maybe some in Ukraine will "invite" Russia in to intervene and straighten things out?
I am some what new to America, but do we not have a lot of natural gas? Could this not be an open market for us? Could we not make some money by transporting compressed gas to Europe?
I will fill the missing information.
Ukraine has not signed the contract on acquisition of gas at Russia.
Therefore it stole gas from pipes delivering in Europe.
After larceny became the full volume of gas is not present sense to deliver gas in transit pipes
Intended for Europe Ukraine has switched gas to the needs.
Therefore there is no sense to deliver gas. It will not reach Europeans.
Why Ukraine has not signed the contract?
Question in the price. Last year the price was 160$ for one thousand cubic metre.
The intermediary company sold this gas in home market at the price of 320.
The difference settled in pockets of heads of Ukraine.
Therefore now the price will be not as for fraternal people, but usual 450$ as well as to all European countries.
The brought down planes in Georgia are considered by the Ukrainian rockets. Wish to be independent pay for oil and gas as independent.
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Gazprom reduces supply to Europe
