http://www.zerohedge.com/news/2014-08-11/ukraine-quickly-backs-threat-halting-russian-gas-transit-after-europe-screams
Submitted by Tyler Durden on 08/11/2014 07:42 -0400
Ukraine Quickly Backs Off Threat Of Halting Russian Gas Transit After Europe Screams
That didn't take long.
A few short days after Ukraine's always entertaining puppet government, whose very existence is to benefit its western overlords and certainly Victoria Nuland's superiors, briefly forgot it has absolutely zero leverage should it alienate not only Russia but also Europe (read Angela Merkel) and announced it may halt Russian energy transits through the country (i.e., Russian gas deliveries for Germany) without obtaining Angela Merkel's preapproval to such a ridiculous threat, Europe - suffering a major flashback to early 2009 and realizing winter is just around the corner - promptly reminded Kiev just who is in control and advised its puppets that it opposes any Ukrainian cut-off of Russian gas, Bloomberg reports citing an EU official.
"Different parts" of the Ukrainian government are “actively considering” a cut-off of Russian natural gas in transit through Ukraine as part of possible sanctions against Russia, a European Union official says. The EU would oppose such a step by the Ukrainian government, which is drawing up legislation to allow sanctions against Russia because of its encroachment in eastern Ukraine, the EU official tells reporters in Brussels on the condition of anonymity
"The secure supply of energy through Ukraine must be maintained,’’ the official says.
Translation: sorry Ukraine, but when Europe has to choose between you and Russian gas, the gas wins every time.
To be sure, Ukraine quickly got the message, and as Energy Minister Yuri Prodan told Bloomberg, the Ukraine sanctions will target Russian companies, not specific resources, with the list of companies to be approved by National Security & Defense Council, Prodan says, declining to name any entities. [Insert any amount of money here] that Gazprom will not be on said list.
Naftogaz, Ukraine's energy company added that Ukraine may ban natgas transit by “certain” companies. In that event, unsanctioned counterparties would be allowed to ship gas across Ukraine; would need to sign new accord with Ukraine’s gas pipeline operator.
Naftogaz concluded that it will remain reliable gas-transit partner for EU, i.e., an obedient little puppet.
And now that Putin knows for a fact (as he has known all along) that he has all the leverage over Europe, and thus Ukraine, certainly don't expect him to back down any time soon.
http://en.itar-tass.com/world/744423
BRUSSELS, August 11. /ITAR-TASS/. An EU working group, which is assessing losses from the Russian food ban on European agriculture, will prepare a report before the European Council’s meeting on Thursday, Roger White, a spokesperson for EU Agriculture Commissioner Dacian Ciolos said on Monday.
Another EU official said the EU can file complaints to the World Trade Organization. The union is considering all possibilities and will discuss the situation before taking any measures, he said, adding that the EU does not stick to a tit-for-tat policy as Russian countermeasures do not imply that the EU will respond with its restrictions.
European farmers can count on the Council compensating losses from the ban, but it will take time, White said. Another EU source told ITAR-TASS that the fund, which can be used for compensating the losses, amounts to €400 million, while the Russian ban blocks exports worth about €7 million.
On August 7, Russia banned imports of beef, pork, poultry, fish, cheese, dairy products, fruit and vegetables from Australia, Canada, Norway, the US and the EU for one year in response to the Western sanctions.
http://en.itar-tass.com/economy/744422
Germany asks Ukraine not to block Russian gas and oil supplies to Europe
August 11, 16:22 UTC+4
On friday, Arseniy Yatsenyuk said that Ukraine may impose sanctions on 172 Russians and 65 firms, as well as ban Russian transit, including the transit of gas, through the country
On friday, Arseniy Yatsenyuk said that Ukraine may impose sanctions on 172 Russians and 65 firms, as well as ban Russian transit, including the transit of gas, through the country
BERLIN, August 11. /ITAR-TASS/. Germany has urged Ukraine not to block Russian gas and oil supplies to Europe.
“The federal government hopes that Ukraine is not going to implement a measure which Prime Minister (Arseniy) Yatsenyuk announced on Friday,” German government’s spokesperson Steffen Seibert said on Monday.
Yatsenyuk said that Ukraine may impose sanctions on 172 Russians and 65 firms, mostly Russian, as well as ban Russian transit, including the transit of gas, through the country. He also said that Ukraine had no choice but to put an end to Ukraine's gas dependence on Russia.
Russian companies, which will not be included in a possible Ukrainian list, will be cleared to carry out gas transit through the country to the EU, Turkey and Moldova, if they conclude direct agreements with Ukrainian state-owned gas company Naftogaz, according to the company’s statement released Monday.
“Naftogaz of Ukraine insists on being a reliable partner in natural gas transportation to the EU. The company affirms its readiness to further conduct flawless supplies of natural gas to European consumers,” CEO Andriy Kobolev said.
http://en.itar-tass.com/economy/744421
Russia, Ukraine, EU may discuss gas debt September 5 — source
August 11, 16:14 UTC+4
During the future trilateral consultations, Russia and Ukraine will have to agree on temporary prices for gas supplies
During the future trilateral consultations, Russia and Ukraine will have to agree on temporary prices for gas supplies
BRUSSELS/TEHRAN, August 11. /ITAR-TASS/. Russia, Ukraine and the EU may hold trilateral talks to discuss gas price and debt issues no sooner than on September 5, a source in the European Commission told ITAR-TASS on Monday.
The EU has not seen any gas supply shortages from Russia so far, an EU official told reporters. According to Russia’s Gazprom, the main transit country, Ukraine, does not have enough gas reserves to ensure uninterrupted supplies to the EU during winter time.
During the future trilateral consultations, Russia and Ukraine will have to agree on temporary prices for gas supplies, Vice President of the European Commission Gunther Oettinger said earlier in August. The temporary solution will remain in force until arbitration courts, which are considering mutual claims of Gazprom and Ukraine's Naftogaz, make their decisions, Oettinger said, adding that this solution must include a full payment of bills by Ukraine.
The trilateral negotiations were halted in early June, when the parties came to a dead-end. Gazprom then agreed to recalculate the April-May Ukraine’s debt on the basis of a $385 price, but Kiev wanted the price to be set at $326. According to Gazprom, the debt amounts to $5.3 billion, while Oettinger estimated it at $3.9 billion.
A bilateral meeting between Oettinger and Russian Energy Minister Alexander Novak was scheduled for August 29. Novak and Oettinger also planned to discuss a solution to suspension of laying of the South Stream pipeline designed to bypass Ukraine in Russia’s supplies to Europe.
Iranian authorities are ready to supply gas to Europe through South Stream’s competitor Nabucco, local media reported Monday, citing Iranian Deputy Oil Minister Ali Majedi. Two delegations from European countries have visited Iran lately to discuss the possible routes of Nabucco, Majedi said, without disclosing which countries sent delegates.
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