Wednesday, February 15, 2012


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Focus Turns To Gas Monitors In Russia-Ukraine Gas Dispute

EU monitors will check gas flows at Ukraine's eastern and western borders.
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By Bruce Pannier
Despite early predictions that natural-gas flows would resume as early as January 9, Russia's Gazprom and Ukraine's Naftohaz remain at odds over a deal to restart shipments to customers in Europe.

Once the gas is back on, it will take between 30-36 hours for volumes to be restored to delivery levels last seen on December 31 -- the day before a pricing war sparked the current gas standoff between Moscow and Kyiv.

But EU monitors are already in Kyiv, preparing to ensure that the shipments, once resumed, are delivered in full. Russia halted the gas flow to Europe amid accusations that transit country Ukraine was siphoning off supplies, a claim Kyiv denies.

The EU monitors, it is hoped, will end the volley of accusations and ensure that Europe spends the rest of what is proving a brutally cold winter with no further drop in supplies.

Little so far is known about the monitors' mandate. Russian Prime Minister Vladimir Putin on January 8 said he did not wish to see a group of monitors descend on Kyiv "to sit in hotels and drink horilka," or Ukrainian vodka.

"We are ready to admit these [EU] monitors on our territory," Putin said. "Of course, they also should be stationed on Ukrainian territory and at the stations through which our gas goes out to Europe, at all the major pipelines."

Details Still Unclear

Since there is little experience in deploying international monitors to keep track of gas flows to the EU, Ukraine and Russia have been left to finalize the terms for the EU mission.

In addition to basing monitors at the eastern and western border points in Ukraine, Gazprom has also asked that monitors should check if gas is being diverted into underground storage areas in Ukraine's western regions. It is also eager to see monitors positioned at compression stations along the pipeline route, to check that volumes remain consistent.

"For the moment we lack further details. Official statements only say that they [monitors] will be put at key locations inside Ukraine, but there are no further specifics," says Federico Bordonaro, a Rome-based energy analyst.

"Of course they will have to monitor whether the gas is actually flowing to Ukraine from Russia, they have to monitor how and when and where the gas leaves Ukraine for European markets," he adds. "For the moment, I think there are still many details that need to be disclosed by the European authorities."

Ukraine and Russia appear to be ironing out an agreement that would allow Russian inspectors to travel to Ukraine, and Ukrainian inspectors to Russia, for additional monitoring.

Volodymyr Trikolich, the deputy head of Naftohaz, said at a news conference in Kyiv that in recent days, Gazprom officials have prevented permanent Naftohaz staff based in Russia from reporting on pipeline activity to their superiors in Kyiv.

"There are agreements and contracts between [Naftohaz and Gazprom] that our representatives are permanently based at their facilities and theirs at ours," Trikolich said.

"We have no complaints, our representatives are there, but [Gazprom] does not let them use the phone to tell us what's going on there," he added. "And they do not want to communicate with us. This is the very first time this has happened."

Gazprom CEO Aleksei Miller told Russian President Dmitry Medvedev that his company was prepared to resume gas shipments to Europe today if all the proper documents were signed. It is not clear whether that will happen, however.

Who's To Blame?

Bordonaro says that while an agreement to resume gas supplies will be welcome, it does not mean full power will be immediately restored in many of the countries currently experiencing problems.

"We have to keep in mind that even if this agreement gets confirmed and these monitors will actually be able to monitor the crucial locations inside Ukraine, some countries -- for example, like Bulgaria -- that are totally dependent on Russian gas supplies for their heating, they will not be able to fully restart their energy system for some days because things cannot be restarted in just a couple of hours," Bordonaro says.

"And also official statements by Europeans this morning were cautious because even though there was optimism, one official said, for example, that it could be a matter of a couple of days before everything restarts properly. So the next few days will be dramatic for some countries."

Bulgaria and other Balkan countries, which are entirely dependent on Russia for their natural-gas supplies, have been forced to switch to alternative fuel sources and rationing schemes to survive a week of freezing temperatures.

This latest Ukrainian-Russian row has been a sobering reminder to the EU of the pitfalls of relying on gas from Russia. Bordonaro says Ukrainian President Viktor Yushchenko may be the one to bear much of the blame due to his hard-line stance on negotiating with Russia, which "has not paid off."

But Bordonaro adds that the EU can easily spread the blame around.

"In the industry market, in the Ukrainian energy market, I think that Naftohaz has not emerged as a particularly reliable player for Europe," he says. "Even so, Europeans tend to accuse Gazprom, and they have good reasons for doing that, because we should not forget that the Europeans have already paid for that gas and that the Russians must respect their contractual duties."
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Comment Sorting
Comments
     
by: rick
January 11, 2009 02:07
Bruce Pannier write :
-Russian Prime Minister Vladimir Putin on January 8 said he did not wish to see a group of monitors descend on Kyiv "to sit in hotels and drink horilka," or Ukrainian vodka.-

tomorrow in the European and Usa Media we will read :
" Putin wants kill European observers threatening to leave them without drink! "

by: Andrew from: Auckland
January 12, 2009 09:37
Now Rick, that is the sort of rubbish that Russian media give.

I really think you need to grow up.

Russia has engineered this crisis, and is reponsible for the gas cut-off.

Just look at how they are trying to weasle out of turning the gas back on despite a written agreements to do so.

First the claim "oh Gazprom has not received the signed contract yet", whatever.

Secondly they claim that the NON BINDING note added to the document by Ukraine makes the signed and binding portion null and void, which is nonsense in legal terms.

Russia is being a bully, and as usual its leaders are acting like spoilt 5 year olds.

At least one good thing will come from this. Europe will turn to alternative energy sources and Russia will return to irrelevance.

by: rick from: milan
January 17, 2009 13:17
How many days was on this Ucrainian comedy , since ottobre 2008 ? -
WE do not have debit ,
WE have debit but it is less,
NOW we pay,
WE have already paid ,
WE have paid but we don’t find it ,
we have paid but less etc etc?
What kind of country is this ?
In October Gazprom said to UA simply that without contract and payment of debt
in 2009 you don’t have gas , and Ucraians what do ?
They waited till 31 December in order to say “we have paid”
but none find this payment,
and wait 2009 for a serious speech about new agrement !
I understand national pride, but not for a country so badly governed !

And then
Russia, Mr Putin in person , offers to Ucraina to pay gas 250 $,
offers this for humanitarian reasons, but GREAT DEMOCRATIC PRO WEST president Yushchenko refused it !
For an example neighbor and very poor Moldova pay already 260$ in 2008 , and 360$ for 2009 !

And Why this west Medias , so correct and bilance ,
never says that UA blocked the gas for EU with a decision of its Court of Commerce in Kiev

Ukraine contests Russian gas transit agreements in court.
05.01.2009, 14.25


KIEV, January 5 -- The Ukrainian Fuel and Energy Ministry filed a suit in the Kiev Economic Court to recognize invalid the agreements on Russia’s gas transit supplies via Ukraine that were concluded for a period until the end of 2010, the Ukrainian ministry’s press service told Itar-Tass on Monday.
The court recognized the agreements invalid, because the former deputy chairman of the Naftogaz Ukrainy board, Igor Voronin, concluded them. The Ukrainian government did not empower the foresaid official to sign these agreements.
The Kiev Economic Court has already ruled to ban Naftogaz Ukrainy to transit the Russian gas via Ukraine at the price of 1.6 dollars for 1,000 cubic meters per every 100 kilometers in 2009. The court ruling supported the suit. The hearings of the case on the merits are scheduled for January 9, 2009.

Yes, you understood well, a court of Ucraina has forbidden the transit of Russian gas
and ordered to confiscate russian gas if transit for Ukraine !
All this because Ucraine side tell that contract for transit was signed by an ucraine official that dont has power for do this ! :-))))) And In ucraina the know this now :-)))))

UA is not a country , is a Comedy !

And now you come here and say me

that Russia
“has engineered this crisis, and is reponsible for the gas cut-off “

After 3 months that Russia try to have a contract and UA pay its Debt !




by: rick
January 17, 2009 13:18
And what About this :

by: Andrew
“Just look at how they are trying to weasle out of turning the gas back on despite a written agreements to do so.

First the claim "oh Gazprom has not received the signed contract yet", whatever.

Secondly they claim that the NON BINDING note added to the document by Ukraine makes the signed and binding portion null and void, which is nonsense in legal terms.”

Gazprom was in right ,
because if dont have contract in its hand it dont see added to the document

And everybody know that a contract with an added is no more a contract but a new contract proposal ,

And anyway , do you sand to comedy country MILIONS AND MILLIONS OF DOLLAR of gas without a contract in your hand ?

And in finish ,
what about “tecnical gas” that UA simply say that there is no more ?

Where are 1 bilion 600 milion cubic meter of gas that were in pipeline ?

Do you know how many money are 1 bilion 600 milion cubic meter of gas ?

At Eu price they are 720 milion of dollar !

Are you ready , is your country ready
for pay this gas for help UA
that simply say that has lost it !

A comedy , realy a comedy !

by: DENNIS JUNIOR from: USA
January 28, 2009 00:11
i think that gas monitors should have been bought in way earlier than the current crisis....

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