• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 2 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 5 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 5 hours Total nonsense in climate debate
  • 5 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 2 days IMO2020 To scrub or not to scrub
  • 17 hours Theresa May to Step Down
  • 2 days Devastating Sanctions: Iran and Venezuela hurting
  • 8 hours Will Canada drop Liberals, vote in Conservatives?
  • 46 mins Australian Voters Reject 'Climate Change' Politicians
  • 5 hours Apple Boycott in China
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 1 day Level-Headed Analysis of the Future of U.S. Shale Oil Industry
The Fear Factor Is Back For Oil

The Fear Factor Is Back For Oil

While fundamentals suggest lower oil…

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