Gazprom sets up action group to start gas cuts to Ukraine (and by extension, Europe)

[Dover]

Source: RIA Novosti

MOSCOW, December 30 (RIA Novosti) - Gazprom has set up a special action group to begin preparations to halt gas supplies to Ukraine if the former Soviet state fails to repay its outstanding debt, the Russian energy giant's CEO said on Tuesday.

Gazprom warned earlier that if Ukraine's $2 billion debt was not cleared, no contracts would be signed with Kiev for deliveries after January 1, 2009, leading to cuts in gas supplies to the country.

"Gazprom has today formed an action group, which has started preparations," Alexei Miller told the Vesti TV channel.

Miller reiterated that Ukraine, which has been badly hit by the global economic crisis, should pay the market rate for Russian gas of $418 per 1,000 cu m from January 1, 2009. In 2008, Ukraine paid just $179.5 per 1,000 cubic meters.

"Not much time is left until the end of December 31, but we hope Ukraine will fully repay its debt and sign a new contract," the Gazprom CEO said.

Last ditch talks between Gazprom and Ukraine's national energy company Naftogaz started on Monday in Moscow, but a deal has yet to be reached...>


Read more: http://en.rian.ru/business/20081230/119229007.html

[izquierdista]

1. They should make their own

They could solve two problems at once: the lack of natural gas and the lack of sewage and sanitation systems. If they built local biogas plants which used local sewage and biomass as feedstocks, they could give a big "thanks, but no thanks" to the Russians.

[unkachuck]

2. sorry Ukraine/Europe....

....that's the way capitalism works; if you don't pay your bill, they turn off the heat....

[Psephos]

3. Ukraine's plight illustrates why the US should not rely on foreign energy suppliers, either n/t

[Jack_DeLeon]

4. I'd say Ukraine should build some more nuclear power plants...

since they unlike say Iran could probably use them more, but given their history with Chernobyl I'm not sure their public would be fond of more.