Ukraine, Russia fail to meet over gas talks


Ukraine and Russia have failed to meet today over the former's looming gas payment deadline, despite agreeing on Saturday to continue talks this morning.

Ukraine must pay $1.95B to Gazprom (OGZPY) before tomorrow, or Russia has threatened to shut off its gas supply.

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Comments (12)
  • Blue22
    , contributor
    Comments (449) | Send Message
     
    Why is nobody discussing the real situation in Ukraine and why Putin made such an insane move? Leading up to 2013 three major deals with three major US corporations were being carved in stone with Ukraine. The one in the East is the same gas play as the Russian Gasprom fields. The one in Western Ukraine was a continuation of the giant play they share with Poland and the deep water find in the Black Sea off Southern Ukraine is another big winner.

     

    Putin of course saw that Russia was being eliminated from the European and other markets through the Balkans and elsewhere and had to secure his wealth and power. So he of course invaded and took over the logical site for crude and LNG export within easy reach of the Motherland. Additionally there are already producing gas fields there. I'm leaving out some of the basic details so all of you may feel compelled to see what is happening before our sleeping eyes.

     

    I am no expert, just a small time, private investor but many of you who make comments and write articles for SA are certainly among the leading experts in the relevant fields. Please enlighten us to the real time situation and what this means strategically to the business and our freedom.
    15 Jun 2014, 01:34 PM Reply Like
  • mapodga
    , contributor
    Comments (6786) | Send Message
     
    Bluee22.
    it is not about gas there. It is about people. 15mio Russians that live there in Ukraine at least if mot more.
    So these was not easy for Russia to looking how that many people live outside the Russia after 1990 and then as come bad treatment from new Kiev government that forbids their native language...

     

    Then this just have to happen and if west will put fingers in this inter Slavic issues to much it could get burnt fingers - literally.

     

    Gas is otherwise in many places this in Ukraine is just one middle sized., nothing especial
    16 Jun 2014, 02:37 AM Reply Like
  • P.Jakubovs
    , contributor
    Comments (12) | Send Message
     
    It's not so black&white.
    First - gas in the East of Ukraine is not like Gazprom fields, but more like US fields (Shale gas). Water pollution and Ukraine having one of the best (or probably the best) farming lands in the world - not going together. And with growing population - what is economically more profitable - difficult to answer.

     

    The next question is the cost of extracting such gas - this one is actually difficult. To my personal calculation, minimum breakeven price for shale gas is somewhere around 140$ / 1000m^3 vs gazprom (without taxes and corruption :) ) maximum at around 80.

     

    What news agencies (not surprisigly) are missing is that under current international aid Ukrain Naftogaz has to be splitted to 3 companies, one of which will take all the pipes and infrastructure (... and will be sold to EU and US). EU is blocking the South Stream (Gazproms direct pipe to Bulgaria) because it will make Ukrainian pipes - worthless (but not because it wants to get off cheap russian gas-needle).

     

    And just btw - LNG price for Europe from Quatar is currently around 700$ vs russian 350-400. GL to Merkel explaining to average german why he'll have to pay double utility bills because he is punishing those russkies!

     

    But the Putin is no saint either. In Ussr a lot of industrial manufacturing had been moved to eastern Ukraine (closer no resorses). That's about 600k jobs which Putin is dreaming to get back to Russia. The Belarus has already said it can substitute immediate demand and russian officials said they need about 2 (lest call it 5 :) ) years to bring the full cycle back.

     

    The list of problems and questions is enough to write a full article here :)
    16 Jun 2014, 03:22 AM Reply Like
  • jacklyn.denise
    , contributor
    Comment (1) | Send Message
     
    Blue22, got any proof Russia "invaded". Hopefully you do better research before investing that you have on this foreign policy issue.
    15 Jun 2014, 05:32 PM Reply Like
  • Blue22
    , contributor
    Comments (449) | Send Message
     
    Any doubts now?
    22 Oct 2014, 07:51 PM Reply Like
  • sethmcs
    , contributor
    Comments (3520) | Send Message
     
    Well if I don't pay my gas bill I get shut off.....just saying.
    15 Jun 2014, 10:08 PM Reply Like
  • Topcat
    , contributor
    Comments (577) | Send Message
     
    That is why in the USA we regulate utilities, that way they can't suddenly, for no reason, raise your rate by 1000%.
    15 Jun 2014, 11:56 PM Reply Like
  • mapodga
    , contributor
    Comments (6786) | Send Message
     
    Topcat

     

    But you pay the gas, otherwise they soot off your supply. And Ukraine doesn't want to pay...
    They had rejected lower price offered by Putin few days ago - it wasn't bad price - some average EU price - 385$ per Kcm.
    16 Jun 2014, 02:42 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1907) | Send Message
     
    This should make Europe think twice about abandoning nuclear.
    15 Jun 2014, 11:33 PM Reply Like
  • Puma69
    , contributor
    Comments (160) | Send Message
     
    If the Ukrainian citizen pays his gas bill, but their gas company fails to pay Gazprom. Where is the money ??
    16 Jun 2014, 11:03 AM Reply Like
  • mapodga
    , contributor
    Comments (6786) | Send Message
     
    Puma

     

    I think nobody paying in order there in Ukraine. They have very low prices for citizens and also industry.

     

    I use to hade RNF stock - one of good US fertilizer producers - they have big problem to compete with Ukraine competition because they have to pay much more expensive gas as their competitors in Ukraine. And NG is 40% of their cost.
    17 Jun 2014, 08:54 AM Reply Like
  • mapodga
    , contributor
    Comments (6786) | Send Message
     
    Puma

     

    I think nobody paying in order there in Ukraine. They have very low prices for citizens and also industry.

     

    I use to have RNF stock - one of good US fertilizer producers - they have big problem to compete with Ukraine competition because they have to pay much more expensive gas as their competitors in Ukraine. And NG is 40% of their cost.
    17 Jun 2014, 08:54 AM Reply Like
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