Gazprom To Abolish Special Pricing Of Gas For Ukraine
Russian energy giant Gazprom has decided to scrap the special pricing regime it is holding for Ukrainian gas supplies.
The reason is that Kiev is "not delivering on its obligations" to the company, Alexey Miller was quoted as saying by the Russian agency ITAR-TASS.
At a meeting with Russian Prime Minister Dmitry Medvedev, he explained that whereas Ukrainian debt to Gazprom was USD 1.529B, the country has so far paid only 50% of its supplies for last year, which means its liabilities are set to rise further.
Mevedev described the decision as fair, but added that he had asked Russian Finance Ministry to consider the possibility of a new loan to Ukraine which could be used by Kiev to make its gas payments.
Earlier, the new Ukrainian leadership already asserted that the debts to Gazprom have been accumulated by the previous government and that the country will soon be ready to remit a USD 400M tranche of what it owes to the Russian gas company.
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" Russia real gross domestic product growth has already slowed from 5.1 percent in 2011 to just over 1 percent in 2013. Car sales fell by 5.5 percent in 2013, despite the Russian government's introduction of subsidized auto loans.
If that weren't bad enough, European demand for natural gas -- about 30 percent of which comes from Russia -- has been steadily falling since 2010. Additional supply could come on line in the coming years from the U.S. and Israel at the same time as Russia expands its own production capacity. The net effect will be a glut that will lower prices and further reduce Russia's access to hard currency."
Looks like the US and Israel will have many European customers in the next few years.
"Thanks for invading Ukraine Russia". - Uncle Sam. LOL