January 06, 2009

Gas Tussle


Sometimes it can be hard to get at the facts. And given that the western media went way down the wrong road on the recent Georgian crisis, one is inclined to be skeptical of coverage on the current Russia-Ukraine gas spat. Here is a nice summary of the facts by Reuters:

(Reuters) - A contract dispute between Russia and Ukraine has disrupted gas supplies to countries in the European Union, which gets about a fifth of its needs via pipelines through Ukraine.

WHY DID THE ROW START?

Russia and Ukraine failed to agree a new contract for gas supplies in 2009 before a New Year's Eve deadline set by Russian negotiators.

Russian gas export monopoly Gazprom said during the talks it wanted to raise the price it charged Kiev from $179.5 to $250. Kiev said it did not want to pay that, and made any price rise conditional on Gazprom paying more for pumping gas to Europe across Ukrainian territory.

WHY IS THERE LESS GAS GOING TO EUROPEAN CONSUMERS?

Gazprom cut off all gas for Ukraine's domestic use on New Year's day. This is not as simple as it sounds: Ukraine's gas, goes through the same network of pipelines as the gas intended for customers in Europe.

So what Russia did was to reduce the total volumes it was pumping by the amount Ukraine imports. That meant a reduction from the usual 400 million cubic meters a day to about 300 mcm/day.

What happened next is under dispute. Russia accused Ukraine of stealing gas intended for Europe, and using it for its own needs. On Monday, it cut gas supplies going through Ukraine further, by about one sixth. It said this was equivalent to the amount Kiev was siphoning off. On Tuesday, Gazprom accused Kiev of unilaterally shutting down at least three major export pipelines.

Ukraine has a different account of events. It denied siphoning off gas, saying only it had used some gas intended for export to maintain pressure in the pipeline network.

It accused Russia of deliberately halting exports, putting under threat supplies to Moldova, Bulgaria, Romania, Greece, Turkey, Poland, Hungary, Slovakia, Germany.

HOW DOES THE GAS GET ACROSS UKRAINE TO EUROPE?

Over 80 percent of Russia's gas exports to the European Union go via Ukraine.

There is a complex network of pipelines, but put simply there are two main routes. One goes West through Slovakia and from there to the Czech Republic, Austria, Germany, France, Italy and other countries.

The second goes south to the Balkans and south-eastern Europe -- the regions worst hit by the supply disruptions.

The Balkan pipeline is more vulnerable to the cuts of Russian supplies because there are no gas storage facilities at the inlet of the export route.

Pipelines running from Ukraine into Slovakia are linked to the huge underground gas storage facilities of Western Ukraine, therefore supplies are more secure.

In addition to these routes, there are separate pipelines from Ukraine to Hungary, Poland and Romania.

WHAT ABOUT OTHER GAS PIPELINES TO EUROPE?

Russia said it was compensating for reductions in exports to Europe by pumping gas through alternative routes. But it was not clear these routes had the capacity to cover the shortfall. These are the other routes:

YAMAL-EUROPE - Goes from Siberia via Belarus to Poland and Germany, Europe's biggest economy. Capacity 33 bcm/year or around 100 mcm per day. Gazprom has increased exports through Yamal to help compensate for lower flows through Ukraine.

BLUE STREAM - Goes from Russia along the bed of the Black Sea to Turkey. Capacity 16 bcm/year or around 50 mcm per day. Gazprom says it was also adding capacity through the Blue Stream pipeline.
 
Like this post? Get a weekly email digest + member-only deals

Some of Our Books

The Frogs Who Begged for a Tsar

The Frogs Who Begged for a Tsar

The fables of Ivan Krylov are rich fonts of Russian cultural wisdom and experience – reading and understanding them is vital to grasping the Russian worldview. This new edition of 62 of Krylov’s tales presents them side-by-side in English and Russian. The wonderfully lyrical translations by Lydia Razran Stone are accompanied by original, whimsical color illustrations by Katya Korobkina.
Murder at the Dacha

Murder at the Dacha

Senior Lieutenant Pavel Matyushkin has a problem. Several, actually. Not the least of them is the fact that a powerful Soviet boss has been murdered, and Matyushkin's surly commander has given him an unreasonably short time frame to close the case.
The Little Golden Calf

The Little Golden Calf

Our edition of The Little Golden Calf, one of the greatest Russian satires ever, is the first new translation of this classic novel in nearly fifty years. It is also the first unabridged, uncensored English translation ever, and is 100% true to the original 1931 serial publication in the Russian journal 30 Dnei. Anne O. Fisher’s translation is copiously annotated, and includes an introduction by Alexandra Ilf, the daughter of one of the book’s two co-authors.
Steppe / Степь

Steppe / Степь

This is the work that made Chekhov, launching his career as a writer and playwright of national and international renown. Retranslated and updated, this new bilingual edition is a super way to improve your Russian.
At the Circus

At the Circus

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.
Woe From Wit (bilingual)

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.
The Little Humpbacked Horse

The Little Humpbacked Horse

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.
Driving Down Russia's Spine

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 
Faith & Humor: Notes from Muscovy

Faith & Humor: Notes from Muscovy

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.
The Pet Hawk of the House of Abbas

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.  
Moscow and Muscovites

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955