Ukraine and Russia reach gas 'consensus'

[muriel_volestrangler]

Source: BBC

Ukraine and Russia have "found consensus" on a deal to end their gas dispute, according to the boss of Ukraine's state gas firm.

Andriy Kobolev told the BBC Naftogaz was prepared to settle part of its debts, while the two parties had agreed a price for gas this winter.
...
"We have found consensus on all elements of the deal," Mr Kobolev said.

"Ukraine has made a gesture of good faith and is prepared to settle part of (its outstanding bills)."

Read more: http://www.bbc.co.uk/news/business-29764260

---

from the Russian side:

Russia submits draft gas agreement to EU, Ukraine

Russia has submitted a draft trilateral protocol agreement to solve gas dispute to the EU and Ukraine, Energy Minister Alexander Novak told reporters Friday.

“I gave the draft trilateral protocol agreement to our partners in Ukraine and the EU on October 21, it is under their consideration,” Novak said. “I do not have the information on what proposals our partners in negotiations are discussing. They have promised to speak them out at trilateral consultations on October 29,” Novak said.

On October 17, Russia and Ukraine agreed on the gas price of US $385 per 1,000 cubic meters for the winter and Ukraine repaying at least $1.4 billion of its gas debt before the supplies restart, however no agreement had been signed during the previous trilateral gas talks on Tuesday, as Kiev has no money to fully repay the debt.
...
Novak said that Russia is ready to sign a new gas agreement with Ukraine as soon as the EU provides financial guarantees for the repayment of the debt and advanced payment for further supplies.

http://en.itar-tass.com/economy/756292

[cosmicone]

1. Nuland's little game means EU takes it in the ass

Ukraine becomes a basket case and Russia gets its money and control.

Thank you Victoria.

[joshcryer]

3. Looks like to me Ukraine gets heat for the winter.

[Monk06]

2. So Ukraine joins the list of failed states beholden to the EU and the US

so that Ukrainian petro gangsters continue to get their cut of the gas business.

Putin must be laughing his bag off.

[joshcryer]

4. Beholden to the EU and US, how?

Sounds like that they're beholden more to Russia.

[Monk06]

5. The EU will have to guarantee payments to Russia for Ukrainian gas imports and the US

has just given the Ukrainian government several billion dollars to prop them up. The US will have to continue subsidizing the crooked Ukrainian government just as it subsidizes the criminal regimes in Iraq and Afghanistan.

Russia just got a blank check from the EU for gas imports to the Ukraine and Putin gave up nothing for it.

[joshcryer]

6. And this is Ukraine being beholden to the US, how?

It sounds like Ukraine is on the precipice and the US and EU are trying to hold it together.

All because "Putin gave up nothing for it."

[Monk06]

8. I'm not going to get out the crayons and spell it out for you. If you don't agree fine but stop

being obtuse.

The EU and US started this by supporting the Maidan overthrow of the government. The US wants NATO missiles on the Russian border. Neutralizing Russia as a political and military force is what is behind all this.

As I said the Ukraine is beholden to the US for billions of dollars already and will need financial support well into the future. Just what the EU needs another basket case country begging for Euros and Dollars to survive.

Pulling Putin's whiskers is going to come with a high price.

[joshcryer]

9. The EU agreement neutered the corrupt oligarchs.

Therefore anyone who was against the EU agreement is objectively for the corrupt oligarchs, particularly as it pertained to the financial industry and the agricultural industry.

What should have happened is that there should have been a trilateral agreement, EU financial standards and agriculture standards be accepted, Russia's gas pricing be accepted, and Ukraine gets let off the hook for any pipeline "losses" since the pipelines are Russia's pipelines and Russia should be enforcing the transport of its stuff, not forcing Ukrainians to suffer because oligarchs are stealing.

Except that's not how Russia operates, as you said "anyone pulling Putin's whiskers is going to come with a high price." That's what Russia has been doing with the gas disputes going all the way back to 2005.

If Ukraine is beholden to anyone it is Russia, and it will be a painful process to get out from under those chains. The funny part is that it appears that you realize this because you can't help but end your replies with how powerful of a position Putin is in.

[Monk06]

11. The Ukraine, whoever is running things, have a history of stealing gas from Russia and selling it

it at subsidized prices in the domestic market. Tymoshenko and her family became wealthy in the wild west gas market in the '90s. IIRC she blocked an illegal supply agreement between Ukrainian oligarchs and their Russian cousins and was thrown in jail.

So much for the criminal element, the upshot is the Ukrainian government cannot be trusted to pay its gas bill to Russia so in steps the EU.

The Ukraine is reliant on Russia for gas. That doesn't make them beholden. They are beholden to the states that are keeping this corrupt regime in place which is the EU and the US not Russia.

Your reasoning is rather slippery, I suspect because you support the Ukraine against Russia.

I hold both sides in equal contempt and have no stake in who wins.

My objection is the behind the scenes efforts on the part of the EU and US through NATO, to put NATO forces on the Russian border which is needlessly provocative and will blow up in everyone's face.

The attempt by the US to neutralize Russia's nuclear capability is both pig headed and dangerous to stability in Europe.

[quadrature]

10. these prices are insane

( one cubic meter is 35.4 cubic feet )

price of NG in the US is
$3.62 per MMbtu, which is just under
a thousand cubic feet.

385/35.4 equals $10.87
(1 cubicfootNG average heat value is 1020 btu...
$3.62 times 1.02 equals $3.69)

this article is either a mistake,
out of date ,
or Ukrainians are brain-dead.

[muriel_volestrangler]

12. Natural gas in the USA is dirt cheap, thanks to fracking

Here's the wholesale price for the UK at the end of August - 42p per therm (down from 72p in December). The UK imports about two thirds of its gas consumption now, so I think that will be close to the average European price. At $1=£0.62, that's $0.68 per therm, or $6.80 per MMbtu. The 72p per therm would have been $11.61. This Ukrainian price is higher than the August one, but slightly under last December's.

The most recent price quote I can find is 51.1p per therm, which would be $8.24 per MMbtu, or $297 per 1000 m3.

[muriel_volestrangler]

13. Ukraine, Russia, EU agree to natural gas supply deal

Ukraine, Russia and the European Union signed a deal on Thursday that will see Moscow resume vital supplies of gas to its ex-Soviet neighbour over the winter in return for payments funded in part by Kiev's Western creditors.

After several failed rounds of talks in recent weeks as conflict rumbles on despite a ceasefire with pro-Russian rebels in eastern Ukraine, the accord also eases concerns that a new "gas war" could disrupt winter supplies if energy to EU states, notably through pipelines shut down across Ukraine since June.

With overnight temperatures already nudging below freezing in Ukraine, European Commission President Jose Manuel Barroso hailed an accord clinched in Brussels barely 24 hours before he and the rest of his team make way for a new EU executive.

"There is now no reason for people in Europe to stay cold this winter," he told a news conference after witnessing the signing of documents by the Russian and Ukrainian energy ministers and EU energy commissioner Guenther Oettinger.

http://uk.reuters.com/article/2014/10/30/uk-ukraine-crisis-gas-idUKKBN0IJ09K20141030