No Russian Aid to Ukraine If Gas Bill Unpaid - Minister

[dipsydoodle]

Source: RIA NOvosti

BOCHAROV RUCHEI, February 8 (RIA Novosti) – Ukraine will receive the second tranche of Russia’s $15 billion in financial aid only after it pays its gas arrears, the Russian finance minister said Saturday.

“We are waiting for the Ukrainian side to pay its gas bill, quite a hefty one. The payment was due in late January, but hasn’t been made to date,” Anton Siluanov said.

The minister said Russia was to receive $2.7 billion from Ukraine by January 25 under a repayment plan for debts accumulated in previous years.

“As far as I know, this year’s gas payments have been made according to schedule,” Siluanov said.

Crisis-hit Ukraine currently owes Russia about $3.3 billion in unpaid natural gas bills, Russia’s state-owned gas monopoly Gazprom said Monday, in an apparent reminder that the long-running dispute over fuel supplies has not been solved by a recent price cut agreement.

Read more: http://en.ria.ru/world/20140208/187343927/No-Russian-Aid-to-Ukraine-If-Gas-Bill-Unpaid---Minister.html

[Jesus Malverde]

1. How do you get three billion dollars behind in your bills...

Thats more than one years supply for them...

Russia supplied Ukraine with $2.63 billion worth of gas in 2013, Gazprom said.

[dipsydoodle]

2. I think prior years are involved too.

Its a cumulative figure which might be to do with different accounts.

[joshcryer]

3. over charging by Russia all this time

[dipsydoodle]

5. The price they were paying was based on a 10 year contract signed in 2009

by Yulia Tymoshenko , not the current administration , fixed at $400 presumably to protect from future market price increases.

The market price of Gazprom supplies in December was $407 / 1000 cu.metres. http://www.bloomberg.com/news/2013-12-18/ukraine-to-seek-european-gas-imports-as-russia-offers-price-cut.html

Some European countries may have negotiated lower prices possibly over shorter period of time than 10 years. You will find elsewhere that those countries also contracted not re-export.

Where's the overcharging ? Aside from that given the current unpaid bills I cannot imagine what possessed Slovakia into thinking they'd actually get paid for gas reverse fed into Ukraine. Ukraine has now also introduced capital controls too to help prevent flight of diminishing foreign reserves :

Friday 7th February -

Ukraine imposed restrictions on the movement of money out of the country Friday to stabilize its battered currency as it burns through reserves of hard cash.

National Bank of Ukraine data show the country's reserves of foreign currency fell to $17.8 billion at the end of January, from $20.4 billion a month earlier.

The central bank said the capital controls would be temporary and were part of a broader move to shore up the economy.

The hryvnia has fallen by roughly 8% since the start of 2014, hitting a five-year low versus the U.S. dollar this week, as investors took fright at growing political instability.

http://money.cnn.com/2014/02/07/news/economy/ukraine-currency-controls/

[joshcryer]

6. Ukraine was paying their Gazprom costs.

It wasn't until Gazprom refused to give Ukraine gas at market rates because of outstanding debts (which would've been paid down), that they hiked the price up more.

http://en.wikipedia.org/wiki/Russia–Ukraine_gas_disputes

Russia claimed, without evidence, that Ukraine has siphoned gas away and was responsible for missing gas. Naturally Ukraine had no real recourse, which is why they agreed to the Russian deal in the first place. They were boxed in and Russia made sure of that.

Oh, and Russia got to expand their naval base.

If it was the US doing this shit we'd rightly be claiming imperialism.

[dipsydoodle]

7. The evidence was based on the shortfall of gas which should've reached Europe

but didn't. Its pretty safe to assume it didn't just simply evaporate.

Whatever - was a bit short sighted of Ukraine if it did because by reducing the volume of what they were actually paying for as confirmed supplies they then got hit under the minimum volume clause.

The lease on the naval base is done and dusted through to 2042.

[joshcryer]

8. the pipes are Russias responsibility

blaming Ukraine is a cop out

my bet is a Russian oligarch diverted and rather accept the corruption they made Ukraine the scapegoat

[davidpdx]

4. Well they have the Ukraine under their thumb

Seeing as there are already problems in the country I doubt they'll be able to pay off the debt.