Russia Cuts Off
Ukraine Gas Supply To 6 European Countries
By Tyler Durden
January 15,
2015 "ICH"
- "Zero
Hedge"
-
---- Vladimir Putin ordered the Russian
state energy giant Gazprom to cut supplies
to and through Ukraine
amid accusations,
according to The Daily Mail, that its
neighbor has been siphoning off and stealing
Russian gas. Due to these "transit risks
for European consumers in the territory of
Ukraine," Gazprom cut gas exports to
Europe by 60%, plunging the continent into
an energy crisis "within hours." Perhaps
explaining the explosion higher in NatGas
prices (and oil) today, gas companies in
Ukraine confirmed that Russia had cut off
supply; and six countries reported a
complete shut-off of Russian gas.
The EU raged that the sudden cut-off to some
of its member countries was "completely
unacceptable," but Gazprom CEO Alexey
Miller later added that Russia plans
to shift all its natural gas flows crossing
Ukraine to a route via Turkey; and
Russian Energy Minister Alexander Novak
stated unequivocally,
"the decision has been made."
As Bloomberg reports,
Russia plans
to shift all its natural gas flows
crossing Ukraine to a route via Turkey,
a surprise move
that the European Union’s energy chief
said would hurt its reputation as a
supplier.
The decision
makes no economic sense, Maros
Sefcovic, the European Commission’s vice
president for energy union, told
reporters today after talks with Russian
government officials and the head of gas
exporter, OAO Gazprom, in Moscow.
Gazprom, the
world’s biggest natural gas supplier,
plans to send 63 billion cubic meters
through a proposed link under the Black
Sea to Turkey, fully replacing shipments
via Ukraine, Chief Executive
Officer Alexey Miller said during the
discussions. About 40 percent of
Russia’s gas exports to Europe and
Turkey travel through Ukraine’s
Soviet-era network.
...
Sefcovic
said he was “very surprised” by Miller’s
comment, adding that relying on a
Turkish route, without Ukraine, won’t
fit with the EU’s gas system.
Gazprom plans to
deliver the fuel to Turkey’s border with
Greece and “it’s up to the EU to
decide what to do” with it further,
according to Sefcovic.
Which,
as The Daily Mail reports, has led to a
major (and
imminent) problem for Europe...
Russia cut gas
exports to Europe by 60 per cent today,
plunging the continent into an energy
crisis 'within hours' as a dispute with
Ukraine escalated.
This morning, gas
companies in Ukraine said that Russia
had completely cut off their supply.
Six countries
reported a complete shut-off of Russian
gas shipped via Ukraine today, in a
sharp escalation of a struggle over
energy that threatens Europe as winter
sets in.
Bulgaria,
Greece, Macedonia, Romania, Croatia and
Turkey all reported a halt in gas
shipments from Russia through Ukraine.
* * *
As Bloomberg goes on to note, Gazprom
has reduced deliveries via Ukraine
after price and debt disputes with
the neighboring country that twice in the
past decade disrupted supplies to the EU
during freezing weather.
“Transit risks
for European consumers on the territory
of Ukraine remain,”
Miller said in an e-mailed statement.
“There are no other options”
except for the planned Turkish Stream
link, he said.
“We have
informed our European partners, and now
it is up to them to put in place the
necessary infrastructure starting from
the Turkish-Greek border,”
Miller said.
Russia won’t hurt its
image with a shift to Turkey because it
has always been a reliable gas supplier
and never violated its obligations,
Russian Energy Minister Alexander Novak
told reporters today in Moscow after
meeting Sefcovic.
“The
decision has been made,” Novak said. “We
are diversifying and eliminating the
risks of unreliable countries that
caused problems in past years, including
for European consumers.”
* * *
That helps to explain
today's epic meltup in NatGas futures...
* * *
"They [the Russians]
have reduced deliveries to 92million
cubic metres per 24 hours compared to
the promised 221million cubic metres
without explanation," said Valentin
Zemlyansky of the Ukrainian gas company
Naftogaz.
"We
do not understand how we will deliver
gas to Europe. This means that in a few
hours problems with supplies to Europe
will begin."
* * *
Check to you Europe (i.e.
Washington)... Because it's getting might
cold in Europe...
(and bear in
mind the consequences of cold, pissed off
Europeans in the past).
See also
Gazprom warns EU to
link to Turkey pipeline or lose Russian gas:
Russia's Gazprom giant on Wednesday urged
the European Union to link up to its planned
energy pipeline to Turkey or lose the gas
that now transits Ukraine. "the Turkish
Stream is the only route along which 63
billion cubic metres of Russian gas can be
supplied, which at present transit Ukraine.
There are no other options," he said.