Gas Supplies to Europe Shut Down

[Rachmaninoff]

We've been discussing the issues in Israel so how about a break to discuss something else? I've been following news about the crisis in regards to fuel shipments from Russia and Ukraine to other countries. The article I'll be referring to can be found here: [URL="http://www.nytimes.com/2009/01/08/world/europe/08gazprom.html?ref=world"][U]Article[/U][/URL]

Basically as the article says: "All gas supplies to Europe via Ukraine were shut down Wednesday as the pricing dispute between Russia and Ukraine escalated."

Now I don't completely know the details, but to have something as critical as gas supplies cut off to entire countries in the middle of winter is alarming. Especially if the article is correct in stating that: "Europe depends on Russia for 40 percent of its imported fuel."

It's bad enough that some countries have already issued rationing for industrial customers to reserve for heating for residential buildings. It's a rude wake up call for countries that rely on others to provide fuel. I seriously hope they get it resolved and soon, before people literally freeze to death.

[Shy]

[size=1]One of my best friends is actually living in the Ukraine right now, and the news coming out of there terrifies me. This is just another example of Russia exerting its' dominance in the region once again. Ultimately it's going to come to a head somehow; either with the U.N. stepping in (unlikely) or former Soviet states rebelling in a futile effort to maintain independence.

My thoughts are definitely with everyone in Europe and the Ukraine. It's a shame that something as necessary as heating could be used as a political bargaining tool against them.

-Shy[/size]

[Raiha]

[quote name='Shy'][size=1]This is just another example of Russia exerting its' dominance in the region once again; ultimately it's going to come to a head somehow; either with the U.N. stepping in (unlikely) or former Soviet states rebelling in a futile effort to maintain indepdence.
[/size][/QUOTE]
[COLOR="DarkOrchid"][FONT="Times New Roman"]I suppose the only good news is that most of those areas aren't quite the same as far as size goes as the U.S., which means that they won't be quite as stranded as we would be if we had no gas. 50 miles is a long way to bike to work and back every day. Not that it's any consolation.

And the only thing I can see the UN feasibly doing is sending a "strongly worded letter" which will have all the impact and importance on the situation as everyone on the OB wearing the color purple on Tuesdays to protest.[/FONT][/COLOR]

[Tophel]

[quote name='Raiha'][COLOR="DarkOrchid"][FONT="Times New Roman"]I suppose the only good news is that most of those areas aren't quite the same as far as size goes as the U.S., which means that they won't be quite as stranded as we would be if we had no gas. 50 miles is a long way to bike to work and back every day. Not that it's any consolation.[/FONT][/COLOR][/QUOTE]

I don't think its that kind of 'gas'. :animesmil

Shy's right Russia is just trying to bully Ukraine. It will end the same way that the same crises ended in 2006 (yep Russia tried the same stunt a couple of years ago, that's why the disruptions, esp in western europe, would not be as bad because they learnt their lesson and have big stores of gas to cover temporary supply cuts). It will end in some sort of agreement between Russia and Ukraine.

For those who might not understand the background, Russia supplies Ukraine's natural gas needs. Russia is trying to bully Ukraine into accepting huge increases (double or triple the cost) for 2009. Also Russia is insisting Ukraine pay some $600 mil in 'penalties' or something. Ukraine obviously is not happy about all this. The complication is that Russia sells its gas to Europe but the pipes go through Ukraine. Also Ukraine is arguing that if needs to pay more for gas, then it needs to get a bigger cut of the money from the gas going through the country.

Long story short, it is a ***** fight which is mainly commercial but has political overtones. Europe is trying not to get involved.

[Sabrina]

[FONT="Tahoma"]That's really terrifying. Dispute or not, a lot of people could freeze to death. I know it's deliberate, but I wish they had waited until the weather wasn't so cold. Wishful thinking, I know. I l feel bad for all the people caught in the middle of this dispute. [/FONT]

[Gavin]

[SIZE="1"]I remember talk about this coming months ago so really it's no shock to anyone in Europe that Russia is in bully-boy mode again towards other former soviet states and the rest of us west by proxy. Unfortunately as the major supplier of natural gas Russia is in a position to do this as it pleases and it's government is entirely indifferent apparently to the dire suffering that people will go through so long as their nation is brought to heel, but such has been the nature of the beast for so long. It's only a shame the EU can't do more than bark at Russia for this.[/SIZE]

[Raiha]

[COLOR="DarkOrchid"][FONT="Times New Roman"]According to the local scuttlebutt in the news files, this move by Putin is more or less him preparing for a cold snap that's apparently going to last at least 5-10 years. He's either stockpiling, or just trying to be prepared, depending on if 'global cooling' actually happens.

And that whole Georgia invasion thing was perhaps Putin's way of saying: "Hey you dicks! I can take over this pipeline any dang time I want to!"

But that could just be crazy talks.[/FONT][/COLOR]

[Rachmaninoff]

What I'm finding sad about this whole affair is this update that I just read about the whole mess: [URL="http://www.msnbc.msn.com/id/28651601/"][U]Ukraine plays blame game over Russian gas[/U][/URL] It's a shame that they're continuing this in the middle of winter. Like you said Gavin, it's a shame they can't do much other than to complain.