EU ABOUT TO GET A BAD CASE OF GAS

So let me get this straight. Obama and the nattering nabobs of NATO are threatening Russia with economic sanctions. Meanwhile, Europe is entirely dependent on Russian oil and natural gas to run their societies. Even the U.S. imports 200,000 barrels of oil per day from Russia. The American and European oligarchs can certainly make Russia feel pain by freezing assets and hurting their currency, but at the end of the day, they will still have the oil and gas in the ground.

If I was a betting man, I think our old friend China might just take some of that oil and gas off of Russia’s hands and provide some short term liquidity to old Vlad.

I wonder how the booming American economy will function at $150 per barrel oil? Maybe Obama can ramp up those student loans and subprime auto loans to save the country.

This little political incident has all the makings of a tipping point in the decline of the teetering American Empire. The rise of China/Russia has never been more evident.

But at least we gave out multiple Oscars to slave films and gay films to prove we are progressive. We got that going for us.

 

It Begins: Gazprom Warns European Gas “Supply Disruptions” Possible

Tyler Durden's picture

We had previously warned that Putin’s “trump card” had yet to be played and with Obama (and a quickly dropping list of allies) preparing economic sanctions (given their limited escalation options otherwise), it was only a matter of time before the pressure was once again applied from the Russian side. As ITAR-TASS reports, Russia’s Gazprom warned that not only could it cancel its “supply discount” as Ukraine’s overdue payments reached $1.5 billion but that “simmering political tensions in Ukraine, that are aggravated by inadequate economic conditions, may cause disruptions of gas supplies to Europe.” And with that one sentence, Europe will awaken to grave concerns over Russia’s next steps should sanctions be applied.

 

It would appear this is the most important map in Europe once again…

 

 

Some recent history…

In late January, Ukraine asked Russia for deferral of payments for gas supplied in 2013 and in early 2014. President Vladimir Putin said Ukraine’s debt totalled $2.7 billion then.

and then…

On March 1, Gazprom’s spokesperson Sergai Kupriyanov said the gas holding could cancel its gas supply discount for Ukraine as its overdue debt for gas reached $1.5 billion. This figure includes debts not only for last year’s supplies, but also for the current deliveries.

 

The situation with payments is worrying,” said Andrei Kruglov, Gazprom’s chief financial officer.

Ukraine is paying but not as well as we would like it to. We are still thinking about whether to extend the pricing contract into the next quarter based on current prices.”

And now today…

Russia’s gas giant Gazprom said on Monday it did not rule out possible disruptions of gas supplies to Europe over Ukraine’s political situation.

 

Simmering political tensions in Ukraine, that are aggravated by inadequate economic conditions, may cause disruptions of gas supplies to Europe,” the monopoly said in its materials, adding that it would do its utmost to reduce export risks.

 

“We will further invest into other export-oriented projects such as South Stream and will enhance our LNG (liquefied natural gas) production and export capacity. We also increase our access to underground gas storage facilities in Europe.”

 

Andrei Kruglov, Gazprom’s chief financial officer, said at the moment Russia had been supplying gas to Ukraine according to schedule, although the latter failed to fulfil its debt obligations.

With that last sentence providing exactly the ‘real world’ cover Gazprom needs to cut its supplies “through” Ukraine and thus to Europe…

And, as The Guardian notes, this would…

not the first time Russia has used gas exports to put pressure on its neighbour – and “gas wars” between the two countries tend to be felt far beyond their borders. Russia, after all, still supplies around 30% of Europe’s gas.

 

In late 2005, Gazprom said it planned to hike the price it charged Ukraine for natural gas from $50 per 1,000 cubic metres, to $230. The company, so important to Russia that it used to be a ministry and was once headed by the former president (and current prime minister) Dmitry Medvedev, said it simply wanted a fair market price; the move had nothing to do with Ukraine’s increasingly strong ties with the European Union and Nato. Kiev, unsurprisingly, said it would not pay, and on 1 January 2006 – the two countries having spectacularly failed to reach an agreement – Gazprom turned off the taps.

 

The impact was immediate – and not just in Ukraine. The country is crossed by a network of Soviet-era pipelines that carry Russian natural gas to many European Union member states and beyond; more than a quarter of the EU’s total gas needs were met by Russian gas, and some 80% of it came via Ukrainian pipelines. Austria, France, Germany, Hungary, Italy and Poland soon reported gas pressure in their own pipelines was down by as much as 30%.

Short of an actual war, the consensus appeared to be, Europe’s gas supplies are unlikely to be seriously threatened (since Putin relies on those revenues)… that is clearly about to change with Gazprom’s comments.

As the following image from Agence France Presse (created at the end of last year) indicates, things are about to get a lot more problemati for Germany, France, and Italy…

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Hollow man
Hollow man

Looks like to me the bear can take a shit anywhere it wants. The woods or the Ukarine or anywhere else.

bluestem
bluestem

Happy day’s are here again, market opened up 150 all is well!!!!!!!!!!!!!!!!!!!!!! Right. John

ThePessimisticChemist

“If I was a betting man, I think our old friend China might just take some of that oil and gas off of Russia’s hands and provide some short term liquidity to old Vlad.”

Get out of my head, I called this when the shit first hit the fan and people started talking about sanctions hurting Russia.

Also, when my wife saw it was Will Smith presenting the Oscar for best picture, she said “Great, the slave one must have one!”

Bostonbob

It appears to me that Putin has played the EU to perfection. While they will continue to put pressure on the ruble he has them hooked on the gas heroin. 36% of Germany’s gas supplied by Russia. It probably never gets cold in Germany and industrial output has so little to do with carbon inputs. 27% of Italy’s natural gas. Who cares, they are already broke, Rome is about to declare bankruptcy. These people have so screwed themselves. This will be interesting to watch, I suspect Vlad has no fear of any of these EU douche bags. While the Russian army may not be what it once was it is still quite formidable. What does Europe have to counter with. Let the fun begin.
Bob.

Treemagnet
Treemagnet

The Pute, its his show. Or Medvedev’s. Isn’t Putin his puppet?

TRUMAN UCCNOT
TRUMAN UCCNOT

At some point Russia will have nothing left to lose if they shut off all life giving gas to Europe…
no different than the line China just crossed with rapidly depreciating US dollars they
were apprehensive to dump for fear of not being able to dump the rest before it turned into
a pumpkin

That idiot “Al Korlin ” said today that they’ll work it all out somehow….yeh Al… uh huh…work it out…
once this all unravels, it’ll be like looking for the spent match that burned down Yellowstone….
nobody will even care how it started anymore…. that’s the anatomy of a Rothschild instigated world war… give it a push and watch the show.

.

Stucky

from a link in the article …

“Britain is preparing to rule out trade sanctions against Russia amid fears that the Ukraine crisis could derail the global economic recovery. Perhaps it is the fear of a massive liquidity suck out from London’s real estate market (or its banking system) that has the Brits on edge. We suspect Germany will be close behind as they eye exploding gas and oil prices and their dependence on Russia’s marginal production.”

Haha. Even the war-mongering Brits and the Obama-dick-sucking Germans aren’t on board the Sanction Train.

Go Ketchup!
Go Oreo!
Go Ass Clowns!!!

Stucky

CuNNt and Fux have been showing that vid @8:48 all fucken day.

“Russians!” “Firing warning shots at Ukrainian soldiers!” “OH MY GOD!!!”

Anyone with half a fucking brain will see the camera men marching along side the Singing Ukrainians.

Anyone with half a fucking brain can deduct that this was all …….. STAGED, by the Ukes, for effect. THEY should have won an Oscar!

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