• 2 hours Kinder Morgan Warns About Trans Mountain Delays
  • 8 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 13 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 17 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 23 hours Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 8 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
Can India Overtake China In The EV Revolution?

Can India Overtake China In The EV Revolution?

India wants to drastically increase…

Russia Threatens to Cut Gas Discounts to Ukraine

The ouster of Ukrainian President Viktor Yanukovych and the new pro-Western interim government prompted a severe reaction from Russian President Vladimir Putin. Russia sent its military to occupy Crimea and to secure its naval base at Sevastopol. The world is watching Russia’s next move in Ukraine on March 3rd as global markets gyrate up and down.

Russia largely controlled Yanukovych due to the discounted gas provided by Gazprom. Ukraine is highly dependent on Russian gas to fuel its economy, and at cheap prices, Yanukovych increasingly looked towards Moscow. With the change in government, Gazprom has threatened to end the discounts, which will imperil Ukraine’s already crumbling economy. Gazprom is demanding $1.55 billion it says Ukraine owes. If Ukraine doesn’t pay, Gazprom will increase its rates.

Russia has demonstrated a willingness in the past to curtail natural gas exports to gain political leverage over its adversaries. As a supplier of about one-third of Europe’s imported natural gas, any imbroglio in Ukraine that cuts off supplies of natural gas will lead to supply disruptions in Western Europe as well, as Ukraine is a vital transit country for Russian gas. Natural gas prices in Germany were already up 8.1% and they were up 10% in the U.K.

Related Article: There's no Easy Fix to Ukraine's Energy Dilemma

However, Russia is also hurting from its invasion as the markets tumbled on March 3rd. Gazprom’s shares were off 17%. The Ruble and the Moscow stock exchange were also sharply down.

The agreement between Ukraine and Russia made by Yanukovych ends in March, and while Gazprom previously said that those discounts could be extended beyond that date, the change in government has prompted a reversal on Gazprom’s part. “It seems without payments for gas and fulfillment of commitments, Ukraine may not keep its current gas price discount,” Gazprom spokesman Sergei Kurpriyanov said, according to Bloomberg.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Comments currently closed.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News