Thursday, 26 February 2015

Putin gets serious on gas supplies to Novorossia

We reported on this yesterday. Putin gets serious and western media just shrugs it off by not mentioning it.

Putin Slams Ukraine Decision To Cut-Off Gas To East As "Genocidal"

24 February, 2015

Ukrainian authorities decision to halt gas supplies to Donetsk amid the ongoing humanitarian catastrophe occurring there "bear the hallmarks of genocide," blasted Russia's Vladimir Putin during an awkward press conference with Cyprus' President Nicos Anastasiades (who he had just agreed bilateral military and trade deals with). "Apparently, some responsible leaders of the modern-day Ukraine are unable to understand the importance of humanitarian issues," Sputnik News reports Putin concluded. In an attempt to gain leverage and force Ukraine's hand however, Russia's Gazprom has indicated it intends to suspend gas deliveries to Ukraine (and thus Europe via pipelines) unless Kiev makes a further prepayment.

Russian President Vladimir Putin said Wednesday the decision of the Ukrainian authorities to halt gas supplies to Donetsk amid the ongoing humanitarian catastrophe “bear hallmarks of genocide”.
As if hunger [in Donetsk and Luhansk] was not enough – the OSCE has already stated that the region is experiencing a humanitarian catastrophe –  they had their gas supplies cut off. What would you call it? I would say this bears the hallmarks of genocide,” he said during a meeting with President of Cyprus Nicos Anastasiades.
"Apparently, some responsible leaders of the modern-day Ukraine are unable to understand the importance of humanitarian issues. It seems that the very notion of humanism has been forgotten," he added.

"Prepayments, made by Ukrainian side, are enough for three - four days. If [further] payment is not made, Gazprom, in compliance with this contract, will halt the [gas] supplies," Putin said at a press conference.
"Naturally, it may create a certain threat for the transit to Europe," Putin added.
Ukraine's state energy company Naftogaz on Monday accused Russia's Gazprom of failing to deliver the gas for which Kiev had prepaid.
According to a statement by the company's press service, Gazprom was to deliver 114 cubic meters both on February 22 and February 23 but supplied only 47 and 39 million cubic meters on these dates instead, respectively.
On Tuesday, Gazprom head Alexei Miller, in turn, said that the amount of gas prepaid by Ukraine was estimated at 219 million cubic meters, enough for a couple of days only.
Kiev's massive gas debt, exceeding $5 billion at the time, forced Moscow to suspend gas deliveries to Ukraine for nearly six months in 2014. Deliveries resumed in early December under the so-called winter package deal, mediated by the European Union and signed by Gazprom and Naftogaz. The deal stipulated that Ukraine must pay Russia in advance for all future gas supplies.

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So, in summary, as UAH crashes into hyperinflation, the IMF (and US taxpayers') funds will be merely a direct funds transfer from the West to Russia (for gas supply services rendered) and Putin take the 'eye for an eye' analogy one step further - cut off supply to Donetsk and we cut off supply to everyone...

Putin: Gas supplies to Europe could suffer in 3-4 days if Kiev doesn't pay

Russia will cut off gas supplies to Ukraine if Kiev fails to pay in “three or four days,” President Vladimir Putin said, adding that this "will create a problem" for gas transit to Europe.

Russian President Vladimir Putin. (RIA Novosti/Sergey Guneev)

25 February, 2015

Gazprom has been fully complying with its obligations under the Ukraine gas supply contract and will continue doing that,” Putin told reporters after talks with the president of Cyprus on Wednesday. The advance payment for gas supply made by the Ukrainian side will be in place for another three to four days. If there is no further prepayment, Gazprom will suspend supplies under the contract and its supplement. Of course, this could create a certain problem for [gas] transit to Europe to our European partners.”

However, Putin expressed the hope that it would not come to that, stressing that “it depends on the financial discipline of our Ukrainian partners.”
He noted that Russia’s ministers and the CEO of Gazprom have actively” reminded Ukraine of the looming deadline.

On Tuesday, Gazprom's CEO Aleksey Miller reminded Ukraine’s state-owned Naftogaz of the gas prepayment. Miller said that Ukraine had not paid for March deliveries and warned that Kiev was risking an early termination of the advance settlement and a supply cutoff.
"It takes about two days to get payment from Naftogaz deposited to a Gazprom account. That's why a delivery to Ukraine of 114 million cubic meters will lead to a complete termination of Russian gas supplies as early as in two days, which creates serious risks for the transit to Europe,” Miller said.

Putin said that Gazprom had breached no contract terms of gas supplies to border points to eastern parts of Ukraine.
"It has become known to us that Kiev suspended gas supplies [to Lugansk and Donetsk regions] referring to the alleged damage to gas pipelines," Putin said.

"At the same time, Gazprom is fulfilling the contract signed back in 2009 and an addendum to it made in October last year. In full compliance with this contract, it supplies gas to Ukraine under advance payments made for the volumes, which Ukraine needs."

Putin indicated that these contracts also stipulated border points. "Gazprom is not breaching any provisions," he added.

"As for the damage to the gas pipeline, I don't know for certain, but I know that these regions are home to about 4.5 million people. Just imagine that these people may be left without gas supply during the winter period. In addition to the hunger, there as is already stated by the OSCE and the humanitarian disaster, just imagine these people may also be left without gas supply," Putin said.

He accused some Ukrainian officials of failing to understand the humanitarian issues in Ukraine’s eastern regions.
Citing the OSCE report of a humanitarian catastrophe” in southeastern Ukraine as well as famine, President Putin said Kiev’s recent decision to switch off gas for those regions smells like genocide.”

Ukraine’s state-owned Naftogaz suspended gas supplies to eastern regions on February 19, citing damage to a pipeline. Under the gas deal between Moscow and Kiev, Gazprom promptly launched gas supplies to Ukraine’s southeast through border gas metering stations supplying 12 million cubic meters a day.
Kiev said it restored the damage in several hours and restarted gas supplies. Naztogas has refused to pay Gazprom for the gas supplied to eastern regions from February 19. The same day, Russian Prime Minister Dmitry Medvedev ordered the country’s energy minister and the head of Gazprom to prepare proposals on fuel deliveries to Ukraine’s southeast regions.
Naftogaz has also accused Russia of breaking the agreement to deliver 114 million of cubic meters of natural gas to Ukraine by delivering only 47 million cubic meters.
According to Naftogas, since February 22 Gazprom has been fulfilling only 40 percent of its requests for pre-paid gas, yet the Ukrainian company plans to get 206 million cubic meters of pre-paid gas by the end of February, RIA-Novosti reported Wednesday.

Reuters reports - 

Putin warns gas supplies to Ukraine, Europe could be disrupted

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