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Gazprom shuts off gas links to Ukraine

 


themarine
Russia's state gas monopoly Gazprom says it's fully cut off supplies to Ukraine after talks on a new purchase agreement failed. Gazprom also increased supplies to other European states, trying to reassure customers worried about possible disruptions.

Gazprom says it cut off supplies to Ukraine because the country is not ready to sign a contract for 2009... a contract with much higher gas prices than last year.

Russia also says Ukraine has failed to pay back its multi-billion dollar debt.

Ukraine has confirmed a steady drop in incoming gas supplies. The news is raising concerns on the streets of the Ukrainian capital, Kiev.

But Ukrainians are not the only ones worrying about the cut-off.
ocalhoun
themarine wrote:

Gazprom says it cut off supplies to Ukraine because the country is not ready to sign a contract for 2009... a contract with much higher gas prices than last year.

Well, if you get something only from one source, you have to be prepared to pay whatever that source charges.

A free market must have competition to work properly.
Nick2008
Considering Ukraine still has debt for Gazprom, Gazprom has every right to do whatever it deems necessary to make Ukraine pay off it's debt fully.
deanhills
Given the present global financial crisis, and especially serious financial problems in Russia and the Ukraine, wonder how easy this is going to be to be resolved.
GLOBALSTRATEGY
Quote:
...Gazprom decided to double the price it takes from the Ukrainians, actually asking that their southern neighbor should pay the same prices as the West Europeans. In reaction, Kiev asked the Russians to increase to European levels the price for the circulation of gas through their territory, although the Russians say they have an agreement which runs until the end of 2010. The current Ukrainian tariff is four times less than what they receive from the Czechs and the Poles, and even ten times less than what they receive from Germany under the same concept. This would lessen substantially the benefits Russia gets from their gas exports, in a moment when their budget is based on an oil price of $80 the barrel and a market price of less than half of it.

Source: http://npk-world.com/

edit by rvec: please use proper quoting next time and add some text of your own (like an opinion or something).
Nick2008
So, if Ukraine is stealing gas, why not make them pay more? Ukraine wants to charge Russia more for their transit, so Russia increasing the price of gas to market price is reasonable.
deanhills
Nick2008 wrote:
So, if Ukraine is stealing gas, why not make them pay more? Ukraine wants to charge Russia more for their transit, so Russia increasing the price of gas to market price is reasonable.


Maybe it is time for searching for alternative gas sources? Who knows, maybe the Ukrainians aren't only stealing the gas, but selling it themselves? Smile
harismushtaq
I don't beleive that a consumer can steal gas that is supplied through a pipeline without the provider noticing. There should be volume measuring equipments that will tell axactly what volume of gas crossed a particular point on the pipeline. As it is normal billing proceedure in many countries, the cost per unit volume is multiplied with the toltal number of unit volumes consumed, similarly either the billing can be based on the amount of volume cosumed or the provider can shut down supply when a predecided volume is consumed.

Other problems are of course general energy crises forced by inflation, economical unstability, reduction in natural supply of resources etc, should be overcome in some way as there will be lots of problems to general public specially in this cold winter season.
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