Europe plunged into energy crisis as Russia cuts off gas supply via Ukraine

Gas prices rise in London
Bulgaria reaches 'crisis' point

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.

Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.

The European Union in Brussels called the sudden cut-off to some of its member countries 'completely unacceptable'.

The EU demanded the two sides reopen talks as the row immediately sparked fears of gas supply shortages and rising energy prices in the UK.

The UK is suffering one of its coldest nights this century with temperatures plunging to as low as -10C.

Though Britain is one of Gazprom's largest importers - relying on the company for some 16 per cent of consumption in 2007, according to The Times, the gas is supplied through a complicated swap scheme that means supplies themselves may not be affected.

Prices, on the other hand, rose during trading in London today.

The dispute, coupled with Israel's military operation in Gaza, also pushed oil up to a three-week high of $49.91 in New York yesterday.

Russia, whose main export is oil, stands to benefit from a recovery in prices.

'Without prior warning and in clear contradiction with the reassurances given by the highest Russian and Ukrainian authorities to the European Union, gas supplies to some EU member states have been substantially cut,' the EU said in a statement.

'The Czech EU Presidency and the European Commission demand that gas supplies be restored immediately to the EU and that the two parties resume negotiations at once with a view to a definitive settlement of their bilateral commercial dispute,' the presidency and the Commission said in a joint statement.

They added that the EU would 'intensify the dialogue with both parties so that they can reach an agreement swiftly'.

Overnight the Russian Prime Minister Vladimir Putin ordered the state energy giant Gazprom to cut supplies to and through Ukraine by around three-fifths amid accusations its neighbour has been siphoning off and stealing Russian gas.

[excerpted, rest at link above]


f

"The European Union in Brussels called the sudden cut-off to some of its member countries 'completely unacceptable'.

The EU demanded the two sides reopen talks as the row immediately sparked fears of gas supply shortages and rising energy prices in the UK."

Oh, ok, EU. And?

Maybe Vlad want his money?

Make it hard currency... as in metallic...

More coverage at:
http://www.zerohedge.com/news/2015-01-14/russia-cuts-ukraine-gas-supply-6-european-countries

http://macedoniaonline.eu/content/view/26808/53/


f

(Isn't one of Joe Biden's sons an exec at Gazprom??)

Quote: FWP wrote in post #4

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(Isn't one of Joe Biden's sons an exec at Gazprom??)

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Quote: GourmetDan wrote in post #5

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Quote: FWP wrote in post #4

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(Isn't one of Joe Biden's sons an exec at Gazprom??)

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No, he is on the board of Burisma Holdings... Ukraine's largest gas producer.

That would be Hunter, the one who was discharged from the Navy Reserve for cocaine use.

Wonderful people lining their pockets through political connections.

Kaching!

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