EU warns Russia not to use gas as weapon in Ukraine crisis

[dipsydoodle]

Source: AFP

The European Union warned energy giant Russia on Tuesday not to use gas supplies as a weapon in its standoff with Ukraine over the fate of its neighbour's separatist east.

EU Energy Commissioner Guenther Oettinger said he hoped to reach an "interim solution" with Russia over its three-month-long supply cut to Ukraine when the three sides meet for crunch talks in Berlin on Friday.

Russia halted all gas sales to the ex-Soviet nation in June after Ukraine balked at paying a higher price imposed by Moscow in the wake of the February ouster in Kiev of a pro-Kremlin president.

Ukraine still transports volumes of gas intended for Russia's other European clients. But EU nations fear that Kiev may be forced to tap into those flows once the winter heating season begins.

"The gas sector and the energy sector as a whole should not be a political tool," Oettinger told a forum in Kiev devoted to European energy security.

"It should not be a weapon in these difficult times, in the crisis between Ukraine and Russia and between Europe and Russia."

Read more: http://www.afp.com/en/news/eu-warns-russia-not-use-gas-weapon-ukraine-crisis

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Think that must refer to supplies via Ukraine as opposed. to Nord Stream etc.to northern Europe. I really, really do think Ukraine should pay that outstanding gas bill - they've got the funds but currently seem to prefer alternative use of them..

The European Union warned energy giant Russia ...............

[Fred Sanders]

1. Only Approved nations can use energy as a weapon, Russia is going off script.

[geek tragedy]

2. After stealing Crimea and invading the Donbass,

Russia owes reparations far exceeding the gas bill. Not to mention its role in MH17.

[dipsydoodle]

3. Generally refers to the actual fact

that Ukraine has in past stolen EU supplies stored in Ukraine's vast storage tanks during summer months for winter usage. Thought seems to be that this year they may do big time and in doing so fuck Italy for example completely.

[pampango]

11. Good point. The value of the infrastructure in Crimea that Russia got for free should be factored

into the gas debt that Ukraine owes to Russia.

[cosmicone]

4. Hypocrisy at its best

Sanctions can work BOTH ways. Live with it.

[dipsydoodle]

6. Couldn't have put it better.

Deal with come to mind.

[Heywood J]

9. Well, one way of doing that would be to restart the

two remaining reactors at Chernobyl. Would you prefer that they live with it that way?

It's a little harder to beat your chest when you've frozen to death in the dark. Hypocrisy at its best includes you forgetting about all of the innocent civilians who will die when the -50 winter comes.

[Nihil]

10. A better way would be to pay their bills - especially as the money has been provided for them ...

Nah, screw that ... paying bills for gas you've already burned is so outdated and ... honest?

[Cayenne]

5. We can dish it out but we can't take it

[MattSh]

7. What BS...

Russia halted all gas sales to the ex-Soviet nation in June after Ukraine balked at paying a higher price imposed by Moscow in the wake of the February ouster in Kiev of a pro-Kremlin president.

What f***ing nonsense.

Ukraine was getting a special "best friends of Russia" price last fall. They don't want to be best friends anymore, but they still want the best friend's price.

The offer on the table for Ukraine is $385 per 1000 m3. The last negotiated price, by the Orange Revolution folks, was $485, before discounts.

Germany pays $379
France pays $394
Poland pays $526

[dipsydoodle]

8. Yes Matt & Thanks for those supply figures..

Last I recall mention of was as you say an offer of about £385 which is sorta what some others pay.

To some extent the differing figures reflect price/volume agreements and hence the range.

[pampango]

12. Russia is looking to replace the European market with China, anyway.

Russia Uses Its Natural Gas to Play the China Card, Again

Ahead of a key meeting of global leaders in Beijing, Russian officials say that negotiations are heating up with China for a possible second major energy deal this year. If signed, the pact would authorize a new pipeline that could double the amount of natural gas Russia is scheduled to export to China and elevate Russia into a major supplier there.

It would also expand the market for exports from Russia, which has been hit hard by American and European Union sanctions over its interventions in Ukraine. About 80 percent of Russia’s piped natural gas now goes to Europe.

But it is clear why Russia has been vocal about such an arrangement. It would have important advantages for Russia, which has been looking for new markets outside Europe. A second major deal with China, the only member of the United Nations Security Council to not censure Russia over its annexation of Crimea from Ukraine, would reduce its vulnerability to punitive actions from the West.

“President Putin is fully aware of the fact that China has secured enough gas from Central Asian republics, but looks determined to show Russia has a very powerful vehicle that can respond to Washington’s and Brussels’ sanctions policy against Russia in the wake of the Ukraine crisis,” Mr. Paik said.

http://sinosphere.blogs.nytimes.com/2014/09/25/russia-uses-its-natural-gas-to-play-the-china-card-again/

Russia and China are a natural fit. One exports natural resources - particularly oil and natural gas - the other is a manufacturing giant that needs these natural resources. China currently has "secured enough gas from Central Asian republics". If it increases imports from Russia, the gas from the Central Asian republics will be available for others like Europe. It may be best for all concerned.