MOSCOW, Jan 8 (Reuters) - A delegation from Russia's Gazprom is flying back to Moscow from Brussels and does not know when talks with Ukraine over their gas dispute will resume, Gazprom's deputy chief executive Alexander Medvedev said. Medvedev told Reuters on Thursday talks on a multi-lateral monitoring system to ensure smooth gas transit collapsed on Thursday because Ukraine did not accept Russian proposals and Gazprom could not accept those of Kiev. He said Ukraine had first refused to sign a protocol prepared by Gazprom and then Gazprom refused to sign a protocol proposed by Ukraine because Russian specialists or observers from European gas firms were not included among the monitors. "It (the Ukrainian proposal) is a perverted version of the idea of multi-lateral control and can only serve the goal of public opinion manipulation. We do not intend to supply gas which is simply disappearing in Ukraine's gas transportation system," he told Reuters by telephone.
MOSCOW, Jan 8 (Reuters) - A delegation from Russia's Gazprom is flying back to Moscow from Brussels and does not know when talks with Ukraine over their gas dispute will resume, Gazprom's deputy chief executive Alexander Medvedev said.
Medvedev told Reuters on Thursday talks on a multi-lateral monitoring system to ensure smooth gas transit collapsed on Thursday because Ukraine did not accept Russian proposals and Gazprom could not accept those of Kiev.
He said Ukraine had first refused to sign a protocol prepared by Gazprom and then Gazprom refused to sign a protocol proposed by Ukraine because Russian specialists or observers from European gas firms were not included among the monitors.
"It (the Ukrainian proposal) is a perverted version of the idea of multi-lateral control and can only serve the goal of public opinion manipulation. We do not intend to supply gas which is simply disappearing in Ukraine's gas transportation system," he told Reuters by telephone.
LONDON, Jan 8 (Reuters) - Russia's insistence Ukraine should pay market prices for gas means an increase of at least 22 percent in Kiev's gas bill this year, forecasts by energy consultants Poyry imply. Russia told Ukraine on Wednesday gas supplies to Kiev, cut since Jan. 1, would resume when both sides signed a new contract at European market prices. Until now Ukraine has paid much less than western European consumers. After weeks of fierce rowing with Russian gas export monopoly Gazprom (GAZP.MM), the head of Ukraine's gas company Naftogaz said on Thursday he believed the only remaining differences with Gazprom were economic ones.
LONDON, Jan 8 (Reuters) - Russia's insistence Ukraine should pay market prices for gas means an increase of at least 22 percent in Kiev's gas bill this year, forecasts by energy consultants Poyry imply.
Russia told Ukraine on Wednesday gas supplies to Kiev, cut since Jan. 1, would resume when both sides signed a new contract at European market prices. Until now Ukraine has paid much less than western European consumers.
After weeks of fierce rowing with Russian gas export monopoly Gazprom (GAZP.MM), the head of Ukraine's gas company Naftogaz said on Thursday he believed the only remaining differences with Gazprom were economic ones.
NOVO-OGARYOVO, January 8 (RIA Novosti) - Russia is ready to pay a market price for gas transit via Ukraine if Kiev pays a market price for supplies of Russian gas, the Russian prime minister said Thursday. "We believe Ukraine should pay a market price, and we are ready to pay a market transit," Vladimir Putin told foreign journalists. "The market transit [rate] in Europe is $3.4 for 1,000 cu m per 100 km," Putin said. Russia paid $1.6 for 1,000 cu m per 100 km in 2008 in line with a contract valid until the end of 2010. In response to a claim by Ukraine's energy ministry, the Kiev economic court ruled Monday that Ukrainian energy company Naftogaz could not pump Russian gas westwards at a price of $1.6 for 1,000 cubic meters per 100 kilometers. The premier said mechanisms to monitor Russian gas transit to Europe should be created as soon as possible to ensure the energy security of European consumers. Putin showed journalists documents, drafted by independent foreign company SGS, proving Ukraine illegally siphoned off Russian Europe-bound gas. "There is proof," he said and presented the documents, when asked what data Russia had on gas tapping by Ukraine.
NOVO-OGARYOVO, January 8 (RIA Novosti) - Russia is ready to pay a market price for gas transit via Ukraine if Kiev pays a market price for supplies of Russian gas, the Russian prime minister said Thursday.
"We believe Ukraine should pay a market price, and we are ready to pay a market transit," Vladimir Putin told foreign journalists.
"The market transit [rate] in Europe is $3.4 for 1,000 cu m per 100 km," Putin said.
Russia paid $1.6 for 1,000 cu m per 100 km in 2008 in line with a contract valid until the end of 2010. In response to a claim by Ukraine's energy ministry, the Kiev economic court ruled Monday that Ukrainian energy company Naftogaz could not pump Russian gas westwards at a price of $1.6 for 1,000 cubic meters per 100 kilometers.
The premier said mechanisms to monitor Russian gas transit to Europe should be created as soon as possible to ensure the energy security of European consumers.
Putin showed journalists documents, drafted by independent foreign company SGS, proving Ukraine illegally siphoned off Russian Europe-bound gas.
"There is proof," he said and presented the documents, when asked what data Russia had on gas tapping by Ukraine.
Now, about the other 25-30 bcm coming to Ukraine... No info there... In the long run, we're all dead. John Maynard Keynes
Here, readers from some of the worst affected countries describe the struggle to keep their homes warm in sub-zero temperatures. IVELINA NIKOVA, DOBRICH, BULGARIA Both of my children won't go to school for an indefinite period of time. They went to school yesterday only to spend some time in cold classrooms before they were released to go home. Only four schools in town will try using other means of energy. It's happy days for the kids, but not for us. Right now we are, it seems, on some kind of limited gas supply regime. Yesterday we didn't have heating and hot water for the whole day. Supply was cut without any warning. The heating started working overnight, again without prior information about it. We were only told that there will be a regime, but we don't know when and for how long the heating will be on.
Here, readers from some of the worst affected countries describe the struggle to keep their homes warm in sub-zero temperatures.
IVELINA NIKOVA, DOBRICH, BULGARIA
Both of my children won't go to school for an indefinite period of time. They went to school yesterday only to spend some time in cold classrooms before they were released to go home.
Only four schools in town will try using other means of energy. It's happy days for the kids, but not for us.
Right now we are, it seems, on some kind of limited gas supply regime. Yesterday we didn't have heating and hot water for the whole day. Supply was cut without any warning.
The heating started working overnight, again without prior information about it. We were only told that there will be a regime, but we don't know when and for how long the heating will be on.
BRUSSELS: Faced with the prospect of his constituents freezing this winter, President Georgi Parvanov of Bulgaria said the best course of action was to restart a nuclear reactor - albeit one that dated from the Soviet era and had to be switched off when the country joined the European Union two years ago. Bulgaria's limited options in the middle of a bitterly cold winter highlight an issue that troubles many Europeans about the continuing fight over gas supplies between Gazprom of Russia and Naftogaz of Ukraine: Europe itself has done too little, too late, to develop workable alternatives. Today, as some EU countries deepen their reliance on Gazprom, the trade bloc faces mounting political and financial hurdles to make any change of course. Energy experts agree that what the EU needs is more natural gas storage capacity, more interconnectedness, more suppliers and more energy alternatives including nuclear and renewable sources like offshore wind - particularly at a time when gas production is becoming concentrated in countries where state-controlled companies like Gazprom dominate. Until recently, the main driver behind Europe's interest in alternatives to fossil fuels were the dangers posed by climate change and its ambition to lead the world in pioneering low-carbon technologies. The obvious, but dirtier, alternative to natural gas - coal - will become increasingly costly to burn in Western Europe because of legislation agreed to just last month. But now, rather than global warming, the wake-up call is coming from freezing apartment buildings.
BRUSSELS: Faced with the prospect of his constituents freezing this winter, President Georgi Parvanov of Bulgaria said the best course of action was to restart a nuclear reactor - albeit one that dated from the Soviet era and had to be switched off when the country joined the European Union two years ago.
Bulgaria's limited options in the middle of a bitterly cold winter highlight an issue that troubles many Europeans about the continuing fight over gas supplies between Gazprom of Russia and Naftogaz of Ukraine: Europe itself has done too little, too late, to develop workable alternatives. Today, as some EU countries deepen their reliance on Gazprom, the trade bloc faces mounting political and financial hurdles to make any change of course.
Energy experts agree that what the EU needs is more natural gas storage capacity, more interconnectedness, more suppliers and more energy alternatives including nuclear and renewable sources like offshore wind - particularly at a time when gas production is becoming concentrated in countries where state-controlled companies like Gazprom dominate.
Until recently, the main driver behind Europe's interest in alternatives to fossil fuels were the dangers posed by climate change and its ambition to lead the world in pioneering low-carbon technologies. The obvious, but dirtier, alternative to natural gas - coal - will become increasingly costly to burn in Western Europe because of legislation agreed to just last month. But now, rather than global warming, the wake-up call is coming from freezing apartment buildings.
It's a mountainous country with a colossal hydroelectric power potential. But the population simply won't allow dams to be built because nobody will live downstream of any dam built by corrupt contractors cos they know the dam will be shoddily built and they don't want to take the risk of a dam burst.
I've actually seen a dam in Sandanski built to capture drinking water and you wouldn't believe how uickly it's disintegrating. It's never been filled because it was dangerous before it was completre. keep to the Fen Causeway
Russian independent gas firms will be told to shut down their wells, becoming hostages to the Russia-Ukraine row, if the export problems facing giant gas company Gazprom lead to a serious domestic glut. Gazprom's exports to Europe are now half the usual volumes as no gas is flowing through pipelines across Ukrainian soil because of a pricing row between Moscow and Kiev, causing shortages that have hit 18 countries in Europe. Gazprom, the world's largest gas producer, has increased European exports via other routes but some 200 million cubic metres per day -- enough to meet the demand from Europe's top economy Germany -- are now locked inside Russia. With low domestic demand due to long New Year holidays and a sharp economic contraction, Gazprom, which controls all Russian gas pipelines, may soon face a choice of whether to shut down its own wells or stop accepting gas from third parties. "Independent producers, like Novatek, and oil firms producing gas will suffer most," said Ivan Mazalov, who helps manage $2 billion at Prosperity Capital Management.
The European Union began as a coal community but has failed to put together a common energy policy. The latest dispute between Russia and Ukraine has once again exposed the need for such a policy with several EU member states struggling to cope with the interruption of Russian gas supplies in a particularly cold winter spell.Yet the crisis - as a study by the Centre of European Reform concludes - could be doing Europe a favour by providing the catalyst to establish an integrated internal European gas market and other common measures to enhance EU energy security.A similar disagreement between Russia and Ukraine three years ago provoked considerable panic throughout Europe. Individual countries intensified their efforts to reduce their dependence on Russian gas imports. They diversified their gas supplies by turning to sources such as Norway, Algeria or Libya. The richer EU nations stepped up investments in liquefied natural gas to diversify even further their gas supplies. They also expanded gas storage facilities while exploring alternative, renewable sources of energy as well as promoting the revival of the nuclear sector.
The European Union began as a coal community but has failed to put together a common energy policy. The latest dispute between Russia and Ukraine has once again exposed the need for such a policy with several EU member states struggling to cope with the interruption of Russian gas supplies in a particularly cold winter spell.
Yet the crisis - as a study by the Centre of European Reform concludes - could be doing Europe a favour by providing the catalyst to establish an integrated internal European gas market and other common measures to enhance EU energy security.
A similar disagreement between Russia and Ukraine three years ago provoked considerable panic throughout Europe. Individual countries intensified their efforts to reduce their dependence on Russian gas imports. They diversified their gas supplies by turning to sources such as Norway, Algeria or Libya. The richer EU nations stepped up investments in liquefied natural gas to diversify even further their gas supplies. They also expanded gas storage facilities while exploring alternative, renewable sources of energy as well as promoting the revival of the nuclear sector.
EUOBSERVER / BRUSSELS - The shape of an EU-dominated monitoring team that is to end the Russia-Ukraine gas dispute became clearer on Thursday (8 January), while EU ministers agreed the problem has taken on a Europe-wide political dimension. "We have an agreement with the EU that when the international observers are in place in Ukraine and have access to the transit stations, we will immediately restore gas supplies to Europe," Gazprom CEO Alexei Miller said in Brussels, as the Russian and Ukrainian diplomatic machines hit the EU capital. The monitoring committee is to comprise European Commission officials, delegates from affected EU companies and staff from the Russian and Ukrainian energy ministries, with 10 EU firms having already confirmed they will take part, Mr Miller explained. The Gazprom chief said he had given "a relevant document, a protocol" on the mandate of the monitoring mission to EU energy commissioner Andris Piebalgs. Ukraine officials said they had signed a formal invitation for European Commission staff to enter the country.
EUOBSERVER / BRUSSELS - The shape of an EU-dominated monitoring team that is to end the Russia-Ukraine gas dispute became clearer on Thursday (8 January), while EU ministers agreed the problem has taken on a Europe-wide political dimension.
"We have an agreement with the EU that when the international observers are in place in Ukraine and have access to the transit stations, we will immediately restore gas supplies to Europe," Gazprom CEO Alexei Miller said in Brussels, as the Russian and Ukrainian diplomatic machines hit the EU capital.
The monitoring committee is to comprise European Commission officials, delegates from affected EU companies and staff from the Russian and Ukrainian energy ministries, with 10 EU firms having already confirmed they will take part, Mr Miller explained.
The Gazprom chief said he had given "a relevant document, a protocol" on the mandate of the monitoring mission to EU energy commissioner Andris Piebalgs. Ukraine officials said they had signed a formal invitation for European Commission staff to enter the country.
Moscow has agreed to the deployment of international monitors to oversee the transit of Russian gas to EU countries via Ukraine, clearing the way for the resumption of European gas supplies, the Czech EU presidency announced last night. Earlier, a senior Czech official said Russia's gas exporting monopoly, Gazprom, had baulked at a deal, insisting that Russian monitors be allowed inside Ukraine, which it claims is stealing gas piped to EU markets across its territory. The breakthrough came after talks between the Czech Prime Minister, Mirek Topolanek, and German and Russian leaders. "This deployment should lead to the Russian supplies of gas to EU member states being restored," the EU said. There was no mention of any timeframe for deploying monitoring teams, nor did it say when supplies might be restored.
Moscow has agreed to the deployment of international monitors to oversee the transit of Russian gas to EU countries via Ukraine, clearing the way for the resumption of European gas supplies, the Czech EU presidency announced last night.
Earlier, a senior Czech official said Russia's gas exporting monopoly, Gazprom, had baulked at a deal, insisting that Russian monitors be allowed inside Ukraine, which it claims is stealing gas piped to EU markets across its territory. The breakthrough came after talks between the Czech Prime Minister, Mirek Topolanek, and German and Russian leaders.
"This deployment should lead to the Russian supplies of gas to EU member states being restored," the EU said. There was no mention of any timeframe for deploying monitoring teams, nor did it say when supplies might be restored.
Frantic efforts to restore gas supplies to millions of European comsumers failed today after Russia flatly refused to turn the pipeline back on. A European Union plan to send monitors to both countries, agreed in principle by Moscow and Kiev as a way of breaking the deadlock between them, faltered at the 11th hour when Russia demanded that its own inspectors should be sent into Ukraine alongside independent experts. The row has has left 12 countries without any deliveries in freezing temperatures and seen hundreds of schools and factories closed to conserve fuel. Hundreds of thousands of people across the Balkans, the worst-affected region, found themselves without heating and some hospitals were forced to close in Serbia as the thermometer dipped below minus 10 degrees Celsius. A senior US diplomat warned that Nato might have to intervene to help alliance members such as Bulgaria and Romania if the crisis drags on. "There is a commercial dispute at the heart of this, but this also has political overtones - we have seen Russia over time using such events to gain political leverage," said US Ambassador to Nato Kurt Volker.
Frantic efforts to restore gas supplies to millions of European comsumers failed today after Russia flatly refused to turn the pipeline back on.
A European Union plan to send monitors to both countries, agreed in principle by Moscow and Kiev as a way of breaking the deadlock between them, faltered at the 11th hour when Russia demanded that its own inspectors should be sent into Ukraine alongside independent experts.
The row has has left 12 countries without any deliveries in freezing temperatures and seen hundreds of schools and factories closed to conserve fuel. Hundreds of thousands of people across the Balkans, the worst-affected region, found themselves without heating and some hospitals were forced to close in Serbia as the thermometer dipped below minus 10 degrees Celsius.
A senior US diplomat warned that Nato might have to intervene to help alliance members such as Bulgaria and Romania if the crisis drags on. "There is a commercial dispute at the heart of this, but this also has political overtones - we have seen Russia over time using such events to gain political leverage," said US Ambassador to Nato Kurt Volker.
XInhua: Bulgaria can live on gas shortage regime for 100 days: president (2009-01-08)
Bulgaria faces no austerity measures in electricity consumption, and no termination of central heating, and its economy could function for up to 100 days on the country's reserves, Bulgarian President Georgi Parvanov announced Wednesday. ...
In the president's words, the only effect of the gas shortage that most Bulgarians would feel was slight reduction in the amount of heat they received from the central heating plants.
In the medium run, Parvanov mentioned some other measures to provide for Bulgaria's energy security including the expansion of the Chiren storage facility, and more importantly, building a 70-kilometers long gas transit pipeline between the Bulgarian city of Dimitrovgrad and the Greek town of Komotini, with which Bulgaria would join the Turkey-Greece-Italy pipeline.
Also Xinhua: PM: Romania capable of coping with gas supply for winter (2009-01-08)
Romania has enough of its own natural gas stocks and production to manage despite the cut-off of its Russian gas supplies, Prime Minister Emil Boc said Wednesday. Boc made the statement after discussing the natural gas crisis with President Traian Basescu. He said that they agreed that Romania has to look for alternative energy resources so as to avoid similar problems in the future.
...
Boc said that with current stocks, Romania is capable of supplying enough gas for heating in the winter as long as there is no extreme weather. "Life shrinks or expands in proportion to one's courage." - Anaïs Nin
That's why I hope you take my remark at face value. The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
Communism to them wasn't a remote or imposed dictatorship. Their troubles were blamed squarely on the local tough guy who was, by all accounts, quite a nasty piece of work.
So it wouldn't make sense to blame russia for this for kudos from the EU. I actually think the senior gangsters are happy to say they have plenty of gas, cos as far as they're concerned regarding their needs, it's true.
But equally, I do think that there will be shortages of power and gas occuring cos that's Bulgaria. It could be cos the country is short of gas, or local intermediaries are taking a leaf out of the Ukrainian book and making a quick buck for themselves, but I wouldn't discount the stories. There will be cold people there. keep to the Fen Causeway
A senior US diplomat warned that Nato might have to intervene to help alliance members such as Bulgaria and Romania if the crisis drags on.
