Convoys Of Russian Tanks Heading For Ukraine Border Ahead Of 2amET Deadline
Submitted by Tyler Durden on 06/15/2014 21:52 -0400
As the 'negotiations' between Europe, Ukraine, and Russia were taking place this afternoon, technically unconfirmed reports of convoys of Russian military vehicles moving towards the Ukraine border were growing. As the 2amET gas-cut-off deadline looms, it appears Putin is mobilizing a significant force ahead of what will likely mean retaliatory actions by either Ukraine military forces or Ukraine militants. As InfoResist reports, up to 200 units are moving towards Ukraine from Kaluga and in the Rostov region, Russia.
Multiple sources also confirm the movement of a large convoy of military vehicles in the Rostiv region towards the border of Ukraine...
And a column of military equipment near Novoshahtinsk...
We are sure this move will be denigrated in the West as an act of aggression... since not only did the Russians decline to play by the West's rules and take a sizable haircut ($300 vs $500) on their already-delivered debt but are now moving military into place to protect its borders...
Keep your eye on the moving ball...
Ukraine's new president, according to The FT, is already asking for the west to imopose fresh sanctions on Russia.
Russia Rejects Ukraine's Gas Deal; 2am Eastern Deadline Looms
Submitted by Tyler Durden on 06/15/2014 19:43 -0400
As suspected given the huge distance between the bid and offer, the EU-brokered Ukraine-Russia gas deal has failed:
- GAZPROM CEO MILLER LEAVES SITE OF UKRAINE GAS TALKS
- GAZPROM SAYS TALKS ENDED, DEADLINE WON'T CHANGE (negotiate that!)
- RUSSIA REJECTED EU'S GAS PROPOSAL: OETTINGER
- UKRAINE WAS READY TO ACCEPT EU PROPOSAL ($300-$385): PRODAN (lol!!)
Gazprom seeks $1.95bn from Ukraine for past shipments of gas by the 10am Moscow time deadline (2amET) and will continue to seek upfront payments for any further shipments.
As Reuters notes,
Russia and Ukraine failed to resolve a gas pricing dispute at talks and a 0600 GMT deadline for Ukraine to pay $1.95 billion in gas debts still stands, a spokesman for Russian natural gas producer Gazprom said on Monday. Spokesman Sergei Kupriyanov said after talks in Kiev that Russia would switch to an advance payment system if it did not receive the money, meaning Moscow could cut off gas supplies to Ukraine.
Cutting supplies could disrupt the gas flow to the European Union.
"The talks in Kiev ... finished around 2:30 a.m. Moscow time (2230 GMT on Sunday). The Russian side is expecting payment of the accumulated gas debt of $1.951 billion before 10 a.m. (0600 GMT) on June 16," Kupriyanov said.
"If the funds are not paid, gas supplies will, as was announced earlier, be switched to a pre-payment system."
Russia and Ukraine disagree how much Kiev should pay for the natural gas it receives from Russia.
European Energy Commissioner Guenther Oettinger told reporters in Kiev that he had made a compromise proposal during talks which began late on Sunday but Moscow had declined the offer. This follows after weeks of Oettinger assuring anyone who cares to listen to him that a deal was assured. Apparently not.
The lack of a deal is hardly surprising given the distance between bid and offer (as Bloomberg notes),
EU proposed gas price range of about $300-$385/kcm, Naftogaz CEO Kobolyev says at news conference in Kiev.Gazprom sought about $500/kcm; Ukraine won’t pay $500/kcm: KobolyevUkraine was ready to accept EU proposal: Ukraine Energy Minister Proda
It seems the market had begun to expect this failure...
OAO Gazprom sank to a one-week low in New Yorkon concern Ukraine won’t pay the Russian producer money it owes for natural gas supplies by today’s deadline, potentially disrupting shipments through the country....“There is a risk,” Mattias Westman, who oversees about $3.6 billion in Russian assets as chief executive officer at Prosperity Capital in London, said by phone on June 13. “Investors are focusing on the outlook for Gazprom’s revenue if there are disruptions of gas supplies to Europe.”
But now the next phase of the Russia vs Ukraine/Europe escalation commences, as Russia truly flexes its commodity muscles.
Russia and Ukraine fail to reach gas deal ahead of cut-off deadline
Published time: June 15, 2014 20:37
Edited time: June 16, 2014 01:33
Edited time: June 16, 2014 01:33
Russia and Ukraine failed to resolve a gas pricing dispute during Sunday talks in Kiev. Gazprom says its demands have not changed and Kiev is expected to pay its debt of $1.95 billion by 06:00 GMT on Monday, otherwise the gas supply will be stopped.
Gazprom’s position remained unchanged after EU-brokered negotiations finally ended around 2:30 a.m. Moscow time (10:30 p.m. GMT) on Monday, Gazprom spokesperson Aleksey Kupriyanov told reporters.
If Ukraine’s gas debt is not paid on time, Russia will be switching to an advance payment system, which will essentially stop gas supply to Ukraine, he added.
"We reached no agreement and the chances that we will meet again are slim -- we are already on the plane heading back (to Moscow)," Kupriyanov told AFP. "If we receive no pre-payment by 10:00 am (0600GMT), then we obviously will deliver no gas."
In his turn, Ukrainian Energy Minister Yury Prodan said that Ukraine is prepared for the cut-off of gas supply from Russia.
However, the head of Ukraine’s Naftogaz said that EU Energy Commissioner Gunther Oettinger suggested a temporary price of US$300-385, adding that there is a chance that this compromise can be achieved before the deadline.
The talks were attended by Gazprom head Aleksey Miller, Ukrainian PM Arseny Yatsenyuk, and EU Energy Commissioner Gunther Oettinger.
The previous round of talks over the price of Russian gas for Ukraine failed to reach a solution to the standing Ukrainian $1.95 billion gas debt. Ukraine have not been paying for most of the gas supplied by Russia this year and demands that the contract on the deliveries be amended.
Russia offered a discount to the price, but Ukraine rejected it, saying it wants the price to be lower.
Ukraine has been pushing for the gas price to be set at $268 per 1,000 cubic meters, Ukrainian Energy Minister Yury Prodan told reporters on Saturday.
The latest price proposed by Russia stands at $385. On Friday, Kiev said it is ready to pay $326 per 1,000 cubic meters.