Putin Warns of Gas Supply Conflict

[gcartwright]

It seems that we can expect a repeat of last year's power cuts...

Putin warns of Conflict over Gas Supplies | cartwright.eu.com

[leonidas]

I read your blog. Nice piece.
Btw, I tried to count how many Russia-Ukraine gas war we've had so far. And I am not sure when it started. Was it really only after the Orange Revolution?

[StormAU]

Mr Cartwright. Your posts here seem to be onesided. I think you need to summaries you blog posts a little so we can see if it is worthy of a read or not. As it is I think your anti-russia as your posts all seem to have that inclination. If you check the BBC news website it indicates Putin is actually chastising the EU for not fulfilling its promise leaving Ukraine in a bad position again this year.

[Outback]

Ukraine needs to just invent the next new revolutionary advancement in energy that will replace gas, oil, and coal. Horilka powered cars and homes!!

[AkMike]

Russian News services are reporting that Ukraine and Russia have come to an agreement regarding delivery of natural gas to Europe. Hoping to avoid a re-run of the customary Christmas time and New Year’s Eve gas wars between Russia and Ukraine, today’s agreement is the result of high level meetings in the Crimean seaside resort of Yalta where Russian Prime Minister Vladimir Putin met with Ukrainian Prime Minister Yulia Tymoshenko.

Reporters at the meetings say that Moscow agreed to meet some of Kiev’s requests and that both Prime Minister’s brushed aside threats broadcast earlier by the President of Ukraine yesterday.

“We shall see in the New Year without any problems,” declared Russian PM Putin, clearly a reference to the troubles of last winter when a gas delivery crisis crippled much of Eastern and Central Europe without natural heading gas during some of the coldest weeks of the winter.

MP Putin has apparently promised not to fine Ukraine for importing less gas than required with the current contract, and PM Timoshenko vowed Ukraine would honor its duty to transit Russian gas to Europe as agreed and on time.

Citing slumping industrial production, Ukraine wanted a reduction in the amount of gas in 2010 by 35 percent, from 52 billion cubic meters to 33.75 billion cubic meters, a move which Putin agreed as acceptable.

Mr. Putin went on to say that while fines for reducing consumption of contracted amounts of gas might be standard business procedures, however he disavowed such fines “in view of the special relationship between Russia and Ukraine.”

The two leaders agreed that Ukraine will pay the world market price of gas, and Gazprom will pay in full the Ukrainian transit fee. Mrs. Timoshenko expressed that this will yield multi-billion dollar revenues for Ukraine’s struggling economy.