• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 1 hour Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 2 hours Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 8 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 5 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 hour China goes against US natural gas
  • 9 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 4 hours Corporations Are Buying More Renewables Than Ever
  • 18 hours Starvation, horror in Venezuela
  • 18 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 20 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 11 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 12 hours Film on Venezuela's staggering collapse
Crude-By-Rail Could Save The Permian Boom

Crude-By-Rail Could Save The Permian Boom

Crude-by-Rail (CBR) has been a…

New Gulf Of Mexico Leases Raise Concerns

New Gulf Of Mexico Leases Raise Concerns

The Trump administration just wrapped…

Russia’s Gazprom Increases Economic Pressure On Ukraine

A senior Russian energy official said May 12 that Moscow would cease negotiations with Ukraine on natural gas deliveries until Kiev pays the Russian gas monopoly Gazprom what it already owes on last month’s deliveries.

Russia also said Ukraine must pay in advance for future gas deliveries by June 1.

“To continue talks, the debt should be paid," Deputy Russian Energy Minister Anatoly Yanovsky told reporters in Moscow.

The Russian government, which owns a slight majority of Gazprom, says Ukraine has not paid the $3.51 billion it owes for gas received in April. Russian Energy Minister Alexander Novak issued a statement on May 8 saying that under Gazprom’s contract with Ukraine’s gas company, Naftogaz, “failure of obligations automatically leads to a switch to prepayment for gas deliveries.”

European nations rely on Gazprom for about 30 percent of their gas, and about half of that amount is shipped through Ukraine.

The negotiations between Kiev and Moscow involve Ukraine’s effort to amend a contract, signed in 2009, that required Kiev to buy a specific volume of gas at a cost of $485 per 1,000 cubic meters, the highest rate paid by any European client of Gazprom.

Last year, Viktor Yanukovich, then Ukraine’s president, decided to abandon a trade treaty with the European Union that was opposed by Moscow. The Kremlin then dropped Ukraine’s cost to $286.50 for the same volume of gas.

Despite the dispute, Gazprom said there has been no interruption in the gas supply to Europe.

Yanovsky also said Monday that Gazprom is close to agreement to supply gas to China.

“We hope that the negotiations will be completed as scheduled,” Yanovsky said. Gazprom and China have been negotiating a contract for more than a decade. “The contract is, I would say, 98 percent ready,” he said.

Yanovsky’s announcement comes about a week before Russian President Vladimir Putin is to visit China.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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