Russia and Ukraine Bluster Over Gas Supply

ZHANG:
The Russian gas export company Gazprom geared up for a new confrontation with Ukraine yesterday. Gazprom is ready to cut off its neighbour from oil and gas next month if it doesn't make its back payments by the end of December.

STORY:
Gazprom says the arrears must be settled as talks proceed on a supply and pricing agreement for 2009.

[Sergei Kupriyanov, Gazprom Press Secretary]:
"In case arrears are not met, which is obvious today, and there's no solution other than cash payment, we will not be able to sign a new contract. This would mean there will be no legal grounds for us to supply gas to the Ukrainian consumers as from January 1."

In Kiev, President Viktor Yushchenko said Ukraine had already paid $800 million US dollars as part payment for the arrears and a further $200 million US dollars would be paid soon. Yushchenko said the debts accumulated after Ukraine company Naftogaz pumped large amounts of gas into storage areas to guard against shortages to consumers.

Ukraine has faced substantial annual increases in the price it pays for gas imported from Russia, even so the 2008 price is considerably below the European market rates.

In talks with Russia, Ukrainian Prime Minister Yulia Tymoshenko agreed on gas prices rising to market levels over three years.

But Gazprom has threatened to push up the price to $400 US dollars next year if arrears remain unpaid.

Tymoshenko says the talks are being hindered by rows over her demand to eliminate intermediary companies from the gas trade between the two countries.

Category:

News & Politics

Tags:

• Ntd
• NTDTV
• news
• Russia
• Ukraine
• Gas
• oil
• Gazprom
• Yushchenko
• Naftogaz
• Tymoshenko

[thegreendestiny]

Of course, the West always takes such opportunities to stab Russia.

In business deals, if you don't pay your bill, your service is cut-off, it's really as simple as that. Ukraine wants to be "independent" but it can't even afford to pay its gas bills. Lol.

[Yuratchka]

Just like Russia didn't cut Ukraine's sustence supply many years ago? Screw Russia.

[BoomeR911104]

Russia is a thug? First of all this gas issue is purely business. If you don't pay for gas, you won't have gas. That simple. There is no "bullying" in this

[BoomeR911104]

ahaha 4%???? I think 4% was back in 1900, try more like at least 70%... And yeah, if arabs decide not to supply USA with oil then there will be war.

[USA0806]

Russia uses the oil as a 'weapon of deterrence'. As a "friend" I would have advised the same thing. Don't blame the US. Russia has always used oil to control the Ukraine. I guess that is how Russian relationship works.

[Globalizator1]

HA. By the way do you know that it was USA president who adviced Ukrainian president to stop transportation of our gas.Thats how "WESTERN FRIENDSHIP" works.

[USA0806]

We only get about 4% of our oil from the Arabs. I wouldn't call that "Dependent". To wait until mid winter to cut off oil supplies sounds like a communist move.

[Globalizator1]

WE didnt cut gas supply Ukraine did it!!!!!!

[Globalizator1]

Yo are typicall "US American" as miss South Carolina said.Want to be dependent on arabs - may be theyt will force you to establish islam order in EU and USA.

[shockolanu]

Indeed. They all suck... EU and Canada are OK but, to dependable on USA and NATO.