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

Survival Russian

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.
Bears in the Caviar

Bears in the Caviar

Bears in the Caviar is a hilarious and insightful memoir by a diplomat who was “present at the creation” of US-Soviet relations. Charles Thayer headed off to Russia in 1933, calculating that if he could just learn Russian and be on the spot when the US and USSR established relations, he could make himself indispensable and start a career in the foreign service. Remarkably, he pulled it of.
A Taste of Russia

A Taste of Russia

The definitive modern cookbook on Russian cuisine has been totally updated and redesigned in a 30th Anniversary Edition. Layering superbly researched recipes with informative essays on the dishes' rich historical and cultural context, A Taste of Russia includes over 200 recipes on everything from borshch to blini, from Salmon Coulibiac to Beef Stew with Rum, from Marinated Mushrooms to Walnut-honey Filled Pies. A Taste of Russia shows off the best that Russian cooking has to offer. Full of great quotes from Russian literature about Russian food and designed in a convenient wide format that stays open during use.
Murder and the Muse

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.
The Samovar Murders

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.
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.
93 Untranslatable Russian Words

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.
Fearful Majesty

Fearful Majesty

This acclaimed biography of one of Russia’s most important and tyrannical rulers is not only a rich, readable biography, it is also surprisingly timely, revealing how many of the issues Russia faces today have their roots in Ivan’s reign.
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.
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.

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