Russia Cuts Gas Supply To Europe

Ukraine Says Shipments Cut By Two-Thirds, Bulgaria Says All Supplies Stopped Completely

(CBS/AP)  Ukraine's gas company Naftogaz said Tuesday that Russia's Gazprom slashed natural gas shipments to Europe by about two-thirds, while Balkan nations reported a complete shut off of Russian gas, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.

Bulgaria's energy ministry said Russian gas supplies to Bulgaria, Turkey, Greece and Macedonia were completely cut off Tuesday morning. Turkey's Energy Minister Hilmi Guler confirmed the cutoff of gas shipped through the Balkans.

Romania's gas transport company Transgaz said Gazprom ceased pumping gas into the pipeline in eastern Romania at 3 a.m. (GMT 0100) Tuesday morning.

The European Union issued a statement later Tuesday morning calling the sudden and substantial cut in supplies to some member states "completely unacceptable."

The 27 member states demanded that supplies be restored immediately.

Bulgarian pipeline operator Bulgargaz CEO Dimitar Gogov said the reason for the suspension was not clear, but that his country's gas reserves were sufficient to cover needs "for a few days."

Gazprom officials could not immediately be reached for comment. Late Monday, it said it would cut the amount of gas it ships to Europe through Ukraine by 65.3 million cubic meters, or about 20 percent.

In Ukraine, Naftogaz spokesman Valentyn Zemlyansky said Tuesday that the shipments to European consumers had dropped to just 81 million cubic meters of gas, down from about 300 million in recent days.

"That is all they are sending, in several hours Europe will feel it," Zemlyansky told The Associated Press. He said he could not confirm that gas shipments had been cut off to the Balkans.

Gazprom had said it would cut gas shipments by the amount it accuses Ukraine of diverting from its transit pipeline network. Russia supplies Europe with about a quarter of its gas, 80 percent of which is shipped through Ukraine.

Kiev denies allegations it is stealing gas, saying Russia is to blame for the disruption because it refuses to supply the gas needed to run its pipelines, including the compressor stations that pump gas west.

Each side says the other is responsible for supplying the gas to run the pipeline network, but there is no way to sort out the conflicting claims. Details of the transit contract are secret.

The rapidly expanding crisis, now approaching its sixth day, could eventually result in disruption of supplies for consumers in Europe, where gas is used for heating and electricity generation.

Some European countries had already reported experiencing supply problems after Russia cut off supplies to its neighbor on Jan. 1 over pricing disagreements and outstanding debt.

Officials in Hungary and Bulgaria have said supplies from pipelines through Ukraine remained down.

Russia's latest reductions appear aimed at putting pressure on Ukraine, which is refusing to pay $600 million Gazprom claims it is owed.

Russia is also demanding an increase in the price Ukraine pays for its gas. Now, Ukraine pays Gazprom $179.50 per 1,000 cubic meters of gas, less than half of the average price European countries are expected to pay this year.

Ukraine, one of the largest consumers of gas in the world, says it has enough reserves to last for weeks.

During a similar dispute between Ukraine and Russia in 2006, which lasted just three days, several West European countries saw their gas supplies drop by 30 percent or more.

This time Gazprom's customers were better prepared, having built up substantial reserves.

While some Western analysts say Russia is using the current crisis to weaken Ukraine's government, Gazprom insists the dispute is purely a commercial matter.

Both nations have been hit hard by the global economic slowdown, neither seems to be in a position to afford a lengthy halt to the gas trade. Both say they are anxious to prove they are a reliable energy partner for the EU.

[cfin5]

Another good lesson for us to be energy independent. The Russians treat their customers just like OPEC treats theirs,.....always jerkin'' the shutoff valve in the dead of winter. If Europeans had their own gas, we wouldn''t even be talking about this issue would we? Let''s just keep our petro-dollars here, where Americans can get more employment. Better that than giving it to them.

[lewiston14]

Why don''''t the Europeans just go take the gas? Oh, that''''s right, America does all the heavy lifting for Europe.

Posted by b4ucmyI

Take it from who? I think Russia might have somethint to say about that.

If I understend this right Russia is cutting supply because the Ukraine is diverting gas ment for the EU to meet their own needs something Russia told them not to do. So if you want to blame somebody blame the Ukraine.

[ispace-2009]

Do not believe everything that CBS reports to you. In fact Ukraine cut the shipments by two thirds and blames it on Russia in order to pressure Europe and Russia to accept their price proposal of $230 per cubic meter for this year instead of the market price of $450.

[debinok1]

Gazprom reminds me of OPEC. Force high prices by cutting supply.

[be_real]

maybe WW III?

[fahren451]

Why don''''''''t the Europeans just go take the gas? Oh, that''''''''s right, America does all the heavy lifting for Europe.

Posted by b4ucmyI

Hey, super patriot. If France had not bankrupted themselves to fund the Revolutionary war, we would not have a our own Nation.

It is the ignorant like you who have lead the charge to the destruction of our country.

[wtcmedic911]

and Russian goverment is trustworthy? i dont think so...

[chad55555]

Russia cuts gas supply to Europe,In South America where Russia and China have military bases South America is to stop sending heating fuel to America and the middle East told it''s people to start a cut back on oil production. SOUNDS A LOT LIKE RUSSIA CHINA AND THE MIDDLE EAST WITH SOUTH AMERICA HAS FOUND A WAY TO HURT AMERICA AND EUROPE OR SOMETHING WORSE.

[secundus2]

Remember this behavior on the part of Gazprom/Russia, when the next battles break out in Georgia or elsewhere in the Caucasus. This is why the Europeans want Ukraine and Georgia in NATO and why Russia doesn''t.

[notblue]

fahren451, when is it time to take a pro-active approach in regards to ones country and life? After an attack, after collapse? Is it ever justified? Just curious.

[torva-2009]

And yet the EU continues to coddle and collaborate with the Russia oligarchy...whatelse did they expect!

[terrylange]

We all better get a clue and see that Gas is a obsolete and stupid fuel The first cars ran on peanut oil and Gas was a left over product when they used to heat w/kerosene. They only adopted it because it was so cheap! The U.S. & China both have stated that they will go to war over oil.Now we are in 2 middle east countries w/permanent bases.We are in the final days!

[ddaryl1]

Either we sacrafice as a nation and ween ourselves off of fossil fuels quickly or we the tensions in the world will increase 100 fold...

there is no intelligence to the way the world/humanity is living on the planet... Changes for the better require sacrafices, but our society has taught us to always take the immediately cheaper and easier route.

[intheshade-2009]

What did they expect? They refuse to pay their bill and the Russians cut them off. The next step would be to invade militarily and steal the gas, like in Iraq. Except, the Russians would kick them good.

[estabwary]

This could be grounds for war, if someone wanted one.
It is illegal in some states here for our gas co''s to turn off gas in the winter for people who have not paid their bills. The threat of death is real.

[presjfk]

"What did they expect? They refuse to pay their bill and the Russians cut them off. The next step would be to invade militarily and steal the gas, like in Iraq. Except, the Russians would kick them good.Posted by InTheShade"

Get your facts straight. First, the bill was paid, $1.5 bill which was confirmed by the Russians. Second, there is a dispute over the $500 mill which Russia billed for late payments. 25% interest for a late payment? I would tell the Russians to go screw themselves.

The Ukrainians in all this want to raise the transit price for gas, which the Russians have rejected. Ohhh well Russia, you asked for it and Ukraine has the right to just as you do to raise their prices. The figure is kept secret which is a mistake. The number should be leaked to the press by the Ukraine.

Also, consider what the Russians have done to the Ukraine over the years. The Russians murdered tens of millions of Ukrainians. If Russia were to pay reparations for a fraction of the damage the gas would be free for decades.

The lesson in all this is Russia cannot be trusted. Never could be and never will be. Europe needs to find another supplier.

[presjfk]

"This could be grounds for war, if someone wanted one.
It is illegal in some states here for our gas co''''s to turn off gas in the winter for people who have not paid their bills. The threat of death is real. Posted by estabwary"

Russia does not care about dead people. The have killed tens of millions of their own people and their neighbors.

One Russian estimate is that the Russians killed 30 million of their own people in the gulag systems of the country. Most of these people were innocent of any crimes. They were forced into slavery and death camps for the sake of building a industrial country and to prevent any dissent.

I predict Russia will eventually invade Ukraine with the excuse their national security is being threatened by the stealing of gas. It doesn''t matter if the story is true or not, the Russians want the Ukraine back for many reasons including gas transit and for the port of Sevastopol - which they feel is part of Russia. Throw in a few hundred thousand Russians that currently live in Ukraine and who want the country part of Russia and it makes for a dangerous situation.

Russian history is repeating itself as Putin rebuilds the old system of dictatorship. Putin has murdered over a hundred editors of private newspapers and magazines, squashed the free press to non-existence, murdered dissenters abroad (remember the polonium poisening in London?) and the list goes on....

[presjfk]

""What did they expect? They refuse to pay their bill and the Russians cut them off. The next step would be to invade militarily and steal the gas, like in Iraq. Except, the Russians would kick them good.Posted by InTheShade"

The Russians did great in their war in Afghanistan. (sarcasm)

[lewiston14]

"25% interest for a late payment? I would tell the Russians to go screw themselves."

Im sure they told Russia that so Russia simpley cut off the supply until such a time the bill is paied.

[presjfk]

""25% interest for a late payment? I would tell the Russians to go screw themselves." Im sure they told Russia that so Russia simpley cut off the supply until such a time the bill is paied. Posted by lewiston14 "

You are probably right but in the process a good thing has transpired. Europe has been reminded that the Russians cannot be trusted.

Also, my guess is the cut in supplies will easily cost the Russians $500 mill even if the Ukraine pays.

[tlphippy]

Way to go Russia show them who''s the boss

[scottyusa]

This action will raise Russia''s stature and make them new friends.

[rudy6543]

Time to isolate Russia and let them eat their gas when nothing else is coming in. Knowing Russia, no European nation should solely rely on that country for energy production of any sort. Shut the borders to Russia and let the mafia there deal with it.

[zhynaryll]

This is the first steps of a concerted Russian campaign designed to challenge Obama when he takes office, and to see how he stands up to it. If he blinks, they grin with glee and plan away at putting the Russian Empire back together. I hope the wimpy Europeans see this for what it is and get some backbone and stand up to the Russians. Seems like this was the excuse Japan used to attack the U.S. in WW2 - that we were denying them oil and coal for their industry. Russia best think twice before cutting off people''s lifelines. Even wimps will eventually strike back - and it won''t be pretty, Mr. Putin!

[nikosk11]

Way to go Russia show them who''''s the boss
-
Posted by tlp16 at 10:40 AM : Jan 06, 2009

Yeah, let''s Europe and the rest of the world cut all the food and meds sent to Russia and then we''ll see who is the boss. Let them [Russians] sniff their gas and eat $hit.

[powmadeak47]

Am I supposed to feel sorry for them? They have known for yrs that Putin is trouble.
But their leader spend more time getting photo ops at Yad Vashem than they do talking about conservation and solar power.

[jamster31]

This will let any nation that plan to buy have Russia supply their gas that they aren''t a dependable supplier and will use their gas as a weapon. Russia''s cutting only their own throat.

[lewiston14]

Yeah, let''''s Europe and the rest of the world cut all the food and meds sent to Russia and then we''''ll see who is the boss. Let them [Russians] sniff their gas and eat $hit.

Posted by nikosk11

That is so funny to say. The EU UK japan and others are so starving to export I dare say they would export to russia in a minute and russia can even name the price. Its good to have oil and gas.

[jamster31]

russia is a sovereign nation with a product to sell -- you want some? you pay the rate set. that''''s the way of the world. always has been, always will be.


--------------------------------------------------------------------------------

Posted by ccfsdca at 12:03 PM : Jan 06, 2009

So i guess that''s what we should tell Africa. Hey! if you want to eat pay the price ir starve. I don''t think so.

[xalen54]

Ukraine, one of the largest consumers of gas in the world, says it has enough reserves to last for weeks.
------------------------------------------

So if Ukraine is not stealing gas that was meant for European Union nations, then how did it get enough reserves to last for weeks when several European nations don''t have any???

[whitemale08]

So i guess that''''s what we should tell Africa. Hey! if you want to eat pay the price ir starve. I don''''t think so.


--------------------------------------------------------------------------------

Posted by jamster31 at 12:46 PM : Jan 06, 2009--

NO!

You tell the British that if you want fresh food from white farmers in Zimbabwe then you PAY THE RATE Mugabe wants you idiot!

TO HELL WITH GLOBALIZATION,

ALL IT DOES IS ROB PEOPLE OF THEIR SOVERIEGN RIGHT TO SELL THEIR PRODUCTS AT THE PRICE THEY WANT!

[timothyone-2009]

Russia is doing what the world should expect from it, just as Israel is doing her thing in Palestine. Neither seem to care about others, and are only looking after themselves. The worst of it is, we''ve been leading the world in selfish, violent acts against others, so we have no room to talk. George W. and the majority of Americans have done a wonderful job of showing the world how to show your asss and go after what you want, using lies and deception, with no regard for the truth, or the lives of the innocent. Go America!! Are you still wearing your flag pin?

[lewiston14]

So if Ukraine is not stealing gas that was meant for European Union nations, then how did it get enough reserves to last for weeks when several European nations don''''t have any???

Posted by xalen54

Not all gas going into the pipelines is headed for the EU or UK. They just held back some of theirs.

Whitemale: you are my hero. I was going to post the same thing. They want food stop making bombs and ditch the military and pay for what you want. Nature culling the heards again.

[cbscrash072]

Europe should look for other sources. If the Russian gas deliveries can be replaced they should be. Russia is not a dependable supplier. They will always use this as leverage.

[jamster31]

NO!

You tell the British that if you want fresh food from white farmers in Zimbabwe then you PAY THE RATE Mugabe wants you idiot!

TO HELL WITH GLOBALIZATION,

ALL IT DOES IS ROB PEOPLE OF THEIR SOVERIEGN RIGHT TO SELL THEIR PRODUCTS AT THE PRICE THEY WANT!


--------------------------------------------------------------------------------


I think you missed my point. Read what i was responding to.
Posted by whitemale08 at 02:25 PM : Jan 06, 2009

[lachie3]

WE IN BRITAIN PAY THE HIGHEST PRICES IN EUROPE FOR GAS
THE UKRAINE PAYS LESS THAN HALF WHAT WE PAY. THEY HAVE SHOWN THEMSELVES FOR WHAT THEY ARE ROBBERS AND BANDITS I HOPE RUSSIA WILL TEACH THEM A LESSON THEY WILL NEVER FORGET IF ONE PERSON IN BRITAIN DIES FROM THE COLD BECAUSE OF THIS THEN THE UKRAINE WILL HAVE MADE A VERY BAD AND UNFORGIVING ENEMY.

[mikefl11]

We put a man on the moon 40 years ago but we still can''t figure out how to satisfy our electricity requirements without burning fossil fuels. Shame on us.