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Putin
tells Europe Ukraine gas debt 'critical', transit threatened
RT,
10 April, 2014
President
Putin has written to 18 European countries, warning that Ukraine’s
debt crisis has reached a “critical” level and could threaten
transit to Europe. He also called for urgent cooperation, blaming
Russia’s partners for a lack of action.
Among
the countries who’ll receive the letter are major consumers of
Russian gas such as Germany, France, Italy, Greece, Turkey, Bulgaria,
Moldova, Poland and Romania.
Given
the accumulated $2.2 billion gas debt owed by Ukraine’s Naftogas,
Russia’s Gazprom will be forced to ask Ukraine for advance
payments, Putin said in his letter to European partners, referring to
the 2009 gas contract signed between Moscow and Kiev.
“In
other words, we’ll be supplying exactly the volume of gas that
Ukraine pays for a month in advance,” as Itar -Tass quotes Putin's
letter.
Putin
added that introducing advance payments would be an extreme measure.
“We
understand that this increases the risks of unsanctioned retrieval of
gas flowing through the territory of Ukraine to European consumers.
And it could also hinder accumulation of gas supplies in Ukraine
necessary to provide for consumption during the autumn-winter
period.”
Stable
transit of Russian gas to Europe would require an additional 11.5
billion cubic meters of gas for Ukraine’s underground storages,
which would cost $5 billion, Putin explained.
Aid
from Moscow
Given
all the discounts Russia has provided in the last four years, Moscow
has subsidized Ukraine’s economy to the tune of $35.4 billion,
coupled with a $3 billion loan tranche in December last year.
“I
would underline – nobody except Russia has done this,” Putin
wrote in the letter.
“And
what about [our] European partners? Instead of real support for
Ukraine – declarations about intentions. Promises without real
action.”
The
European Union has traditionally used Ukraine as a source of
foodstuffs, metals, mineral resources and as an export market for its
machinery, chemicals and other highly-processed goods. This creates a
trade deficit of above $10 billion, which is almost two-thirds of
Ukraine’s 2013 current account deficit, the letter explained.
“Russia
should not and cannot any longer bear the brunt of supporting the
Ukrainian economy alone, giving it gas discounts and forgiving debts.
In fact, with these subsidies Russia pays for a deficit in trade
between Ukraine and the EU member states.”
Immediate
consultations with European countries receiving the letter are the
only possible way to resolve Ukraine’s crisis, Putin said.
We
need “to start coordinated action as soon as possible. And we urge
our European partners to do this,” he wrote.
Russian
gas in Europe
Russia’s
biggest gas client is Germany which imports over 25 billion cubic
meters of gas from Gazprom each year, about a third of its energy
needs. Italy is another big importer, also relying heavily on Russian
imports as deliveries from North Africa have proved unreliable.
Lithuania,
Estonia, Finland, Latvia, Bulgaria and the Czech Republic import 100
percent of their natural gas from Russia.
Source:
Financial Times graphic based on IEA, Eurostat, EIA data
Ukraine’s
total debt to Russia, including the $2.2 billion bill for gas, now
stands at $16.6 billion, Prime Minister Dmitry Medvedev said on
Wednesday.
Gazprom
has revoked all discounts and now charges $485 per 1,000 cubic meters
of gas, a price Ukraine says it will not be able to pay because it
threatens Ukraine's ability to continue normal gas transit operations
to Europe.
Moscow
cut off gas transit through Ukraine to Europe in the winters of 2006
and 2009 over similar unpaid bills to Gazprom, which left parts of
Europe without heat. Moscow claims Ukraine illegally siphoned off
supplies intended for Europe during this time, an accusation Kiev
denies.
Russia dismisses Council of Europe 'farce' vote
Moscow
has expressed both hurt, and outrage after being targetted with a
slew of new sanctions at the Parliamentary Assembly of the Council of
Europe .
US destroyer Donald Cook enters Black Sea amid Ukraine tension
USS Donald Cook, a destroyer equipped with the powerful Aegis missile defense system, has crossed through the Bosphorus and entered the Black Sea, with Russia claiming that NATO is assembling a battle fleet in the region.
10
April, 2014
Earlier,
the US Defense Department said the ship’s mission was “to
reassure NATO allies and Black Sea partners” following the events
in Ukraine.
“It
demonstrates our commitment to our … allies to enhance security,
readiness and capabilities,” spokesman Colonel Steven Warren said
in a statement.
But
sources in the Russian military believe the move is part of a
systematic build-up of naval forces.
“What
we are seeing is that for the first time since 2008, NATO is creating
a naval battle group outside the Russian borders,” a source told
Interfax news agency, citing the entry of French reconnaissance ship
Dupuy de Lome and destroyer Dupleix – both expected within the next
week.
The
French rescue vessel Alize has been inside the Black Sea basin since
late last month.
“The
purpose of this is to provide moral support for the regime in Kiev,
but also as a demonstration of power to make Russia come to heel. But
the ship will also collect information on Russian military activity
in Crimea and on the Ukrainian border,” the source said.
Russia’s
Black Sea fleet is stationed in Sevastopol in Crimea, which was
incorporated into Russia following a referendum last month.
NATO
also believes that Moscow is massing troops on its border with
eastern Ukraine, which has experienced uprisings by pro-Russian
activists calling for secession from Kiev. On Thursday, NATO released
satellite shots of Russian border bases heaving with troops and
equipment, though Moscow has said that the shots are from last year,
and in any case, show no unusual activity.
USS
Donald Cook had already aroused the anger of Moscow when it arrived
in Europe earlier this year, as it carries the sophisticated Aegis
weapons and radar system and will form a key part of NATO’s missile
defense shield in Europe. Moscow has vehemently opposed the project,
saying it is a direct security threat and alters the nuclear balance
of power in the region.
Moscow
has said that NATO naval movements since the beginning of the
Ukrainian crisis at the end of last year have violated the Montreux
Convention on naval movements in the Black Sea.
According
to the treaty, warships from non-Black Sea states can only stay in
the basin for up to 21 days consecutively. USS Taylor spent 11 more
than that in the region in February and March.
On
Thursday, Russia’s Foreign Ministry expressed “bemusement” over
the supposed violations.
“Turkey
[which administers the treaty] did not inform us about the overstay.
We have expressed our concern to the Turkish and US side in a verbal
note,” said a statement on the ministry website.
But
even if Washington complies with the terms of the treaty, it is
unlikely to reduce its military presence beyond the Bosphorus.
“Since
February, whenever one US ship leaves the Black Sea, one or more
replace it. It is possible that this rotation will be kept up for
ships operating the Aegis system,” the Russian military source
said.
Donetsk protesters prepare for Kiev military attack, referendum
As the armed storming of the Donetsk administration building seized by the protesters seems imminent, the anti-government movement is preparing for the referendum set to form their new way of life and the country they’re going to live in.
RT,
10
April, 2014
As
the armed storming of the Donetsk administration building seized by
the protesters seems imminent, the anti-government movement is
preparing for the referendum set to form their new way of life and
the country they’re going to live in.
Masked
men, who are mostly civil volunteers, but also police and army
defectors, say they “defend their motherland from the fascist army
that’s going to kill them.” They also demand “a referendum to
be independent from Kiev” and are in favor of “being with
Russia.”
In
the local administration building, the protest movement makes Molotov
cocktails: they say they want to avoid any violence, but if there is
a crackdown on them, they will be forced to use whatever they have.
“I only have a stick to defend myself. They are coming armed with machine guns, and all I had yesterday for example was a chair leg,” a masked protester said.
The
Donetsk protesters fear the repetition of Kharkov scenario, where
police cleared the demonstrators in a very violent way, detaining at
least 70 people.
Donetsk
is known to be the Ukrainian industrial capital, with about 1 million
people living there. The Donetsk region is home to 10 per cent of the
country’s population.
In
the local administration, there are representatives of almost every
big town or city in the Donetsk region, and each city or town
occupies a floor in the building.
The
protesters explained their position to RT.
“The
protest in Donetsk is against nationalism, we are for social justice,
the creation of our republic means drastic changes in the way our
territory is organized. We are for equality of languages. We are
against the oppression by the majority by the nationalist minority,
and against threatening ethnic Russians.”
Another
protester, wearing a mask, spoke about the industrial wealth of his
region that seems to vanish in Kiev for the most part.
“Donetsk
region sends about 470 million dollars to Kiev, and less than 150
million returns. All the mines and enterprises in Donetsk are
prosperous.”
Watch
more in RT's Maria Finoshina's report.
From CNN
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