Europe baffled by broken gas promises

[jujuman13]

Link
FT.com / Europe - Europe baffled by broken gas promises

Quite how Moscow believes this to be US interference is difficult to understand.

IMO what is happening here is that Ukraine is slowly being blackmailed into giving Russsia it's Gas Pipeline network.

Russia will eventually win this as Ukraine has no other supply of Gas.

The best thing that the EU can do is to complete the proposed Gas pipeline between Algeria - Morroco - Spain that will then tie into other EU pipelines.

Once EU has possibility of two suppliers Moscow cease it's nasty practices.

Moscow has already attempted to join up with both Mid East & North African Gas Suppliers in an organization similar to OPEC.

Very likely this organization will succeed, however as we have already found out with OPEC no one country can ever hope to rule over everyone else.

 

[Khayembii Communique]

Wow, even I didn't see this one coming! It sounded like Russia was going to get everything they wanted, but now that they realize what power they're wielding, they want more.

"In a potentially alarming twist on Tuesday night, Gazprom, the Russian gas company, said it was unable to meet its legal commitments to supply European countries with gas because Ukraine was allegedly blocking the flow across its territory.

...

Russia began the day by feeding small volumes of gas into a pipeline across Ukraine to the Balkans, but Ukraine refused to transit the supplies, citing technical reasons."

Any details on these technical reasons? Ah, here:

"Oleh Dubyna, president of Naftogaz, Ukraine’s state gas company, said it was technically impossible to pump gas to the Balkans via the route proposed by Gazprom without cutting off supplies to eastern Ukraine. “We did not open the valve because there is no capability,” said Mr Dubyna. A spokesman at the US embassy in Kiev rejected as “baseless and bizarre” Gazprom’s charge that the US had interfered in the dispute."

Very strange. What the hell is Russia doing? It's possible that they're attempting to severely limit Ukrainian distribution of gas to Eastern Ukraine in an attempt to bring it further under their influence. I know they've had problems on that border in the past, although this entire situation is just plain weird.

 

[jujuman13]

The Technical reasons are not clearly explained either within this article nor anywhere else that I have been able to find.
So, let me try to explain.
Gas is moved through any Pipeline by using Compressors, typically these are powered with Gas, usually taken from the Gas being pumped through these lines.
The Ukraine position is that it sees no reason why it (Ukraine) should have to supply this Gas (needed to power up the Compressors) from it's (Ukraine's) own supply of reserves, in order to push the Russian Gas across Ukraine Territory to Gazprom customers elsewhere in the EU & Europe.

Gazprom states that it supplies Gas for it's customers, Ukraine currently does not have a contract with Gazprom to purchase Russian Gas, it therefore states that the Ukraine is stealing Gas from the Ukraine Gas pipeline.

Further, Ukraine does have a reserve of Gas, this they are currently pumping to East Ukraine, if they were to agree to continue pumping Gas through to Gazprom's customers, they (Ukraine) would have to take Gas from their own reserves in order to power up the Gas Compressors to push that Gas onto Gazprom's customers.
As the Ukraine has already purchased that Gas from Russia (thus allowing it to build up a reserve) it (Ukraine sees no reason why it should now use that Gas to pump Russian Gazprom Gas without being either paid for the Gas they use to pump or to have that gas replaced by Gazprom.

IMHO I think that the bad guys in this situation are Gazprom and through them the Russian Government.

Why does Ukraine not sign another contract with Gazprom to supply Gas to Ukraine?
Well you may ask.
Ukraine had (previously) a contract with Gazprom that was less cost to Ukraine than to the Contracts Gazprom had with it's other customers (I believe Ukraine price was around 45 to 50% less).
Gazprom propose the new price structure to Ukraine to be more in line with what it charges it's (Gazprom's) other customers.
Ukraine says it cannot afford that new price structure.
Hope this helps you understand the situation.