Tuesday - January 03, 2006

Putin Blinks

It looks like Europeans will stay warm after all this winter. The Russians caved in to pressure and turned the gas back on last night. This story isn’t over yet though. What’s really interesting about this story is the quote below about “reconsidering the decision to phase out nuclear energy” in Germany. Now there’s a thought. Look for the European envirowhackos to freak out over that ...

Russia Steps Back From Brink With Ukraine
and Restores Gas Supplies to Europe
MOSCOW (UK GUARDIAN)

Russia’s image as a reliable international energy supplier became increasingly tarnished yesterday as a stand-off with Ukraine over gas prices disrupted supplies to Europe. The Russian energy group Gazprom accused Ukraine of stealing about $25m (£14.5m) worth of natural gas from transit supplies destined for other European countries, but most EU members blamed President Vladimir Putin for the crisis. Last night Gazprom appeared to bow to international pressure by increasing transit supplies flowing through Ukraine by the amount allegedly siphoned off.

Germany’s economy minister, Michael Glos, called on Moscow to compromise in its feud with Ukraine. “Russia has the presidency of the G8 and therefore has to act responsibly,” he said. The Russian state-owned energy company Gazprom switched off flows to Ukraine on Sunday after a bitter, politically charged dispute over gas prices. A drop in deliveries to other countries sent through the same pipeline network was noticed within 24 hours. In the UK the energy minister, Malcolm Wicks, admitted the dispute could affect European and global markets. Speaking to the BBC, he reminded Russia it had “never let down Europe during the cold war” and expressed hope it would be “mindful of its reputation as a secure energy supplier”.

Five EU countries yesterday confirmed that the amount of gas arriving from Russia had fallen off dramatically. Germany, Austria, Poland, Hungary, and Slovakia all reported a sharp drop in supplies, with Hungary saying its gas deliveries had gone down by 40%. “This situation cannot be accepted. Russia is mixing its foreign policy with its policy for gas supplies,” Poland’s deputy prime minister, Ludwik Dorn, told broadcaster Radio Zet. While harsh judgment of Russia from former Soviet satellite states was predictable, there was fresh debate from “old Europe” as to how it should respond ahead of tomorrow’s emergency meeting of EU energy experts. The EU buys a quarter of its gas from Gazprom. Mr Glos, who belongs to a conservative coalition led by Germany’s chancellor, Angela Merkel, said the country should now reconsider its decision to phase out nuclear energy.

- More on this story here ...

Posted by The Skipper     on 01/03/2006 at 05:53 AM   
Filed Under: • EUro-peons •  
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