Gas Row Sends Shiver Through EU--BBC

[Gloria]

http://news.bbc.co.uk/2/hi/europe/4574264.stm

Last Updated: Monday, 2 January 2006, 02:21 GMT

Gas row sends shiver through EU

Russia's decision to cut gas imports to Ukraine is causing dismay across Europe, where supplies in a number of countries have been disrupted.

The US has also expressed concern, saying the move raised "serious questions about the use of energy to exert political pressure".

Exports to the EU and Ukraine are carried through the same pipes. Russia says Kiev is stealing the EU's gas.

State-run firm Gazprom cut supplies on Sunday in a dispute over prices.

Politically charged

Russia said it had no choice but to act after Ukraine refused to sign a new deal accepting an immediate increase in gas prices from $50 to $230 per 1,000 cubic metres. The average EU charge is $240.

Russia supplies 30% of Ukraine's gas, and about 25% of Western Europe's needs. Hungary, Poland and Austria have reported a fall in supplies. EU Energy Commissioner Andris Piebalgs said the crisis was causing concern.

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[bemildred]

1. "Russia refuses to sell gas at fraction of market rates."

"Free market political whores suddenly call for socialist price controls."

Alternative headlines ...

[depakid]

2. What happens if the pipelines lose too much pressure?

Any engineers about?

I figure a lot of pilot lights go off and when pressure rises again, gas leaks out.

That sounds to me like a recipe for BOOM!

[Odin2005]

3. Sounds like Putin is having a temper tantrum...

...because Ukraine isn't being Russia's bitch anymore.

[daleo]

5. Ukraine is getting an awfully sweet deal right now

"Russia wanted to increase the price from $50 to $230 per 1,000 cubic metres. The average charge in the EU is $240. (As many EU countries are further from Russia, the cost of transporting the gas would be higher.)"
- from the BBC article).

I don't doubt there is also a political subtext, but the economic argument stands on its own. I live in a place (Alberta Canada) that has huge gas reserves, but I pay world prices due to deregulation.

[cal04]

4. Russia says it will restore gas to Europe

A heavily-criticised Russia on Monday promised to restore full gas supplies to Europe after Germany warned that its dispute with Ukraine over deliveries could hurt its long-term credibility as an energy supplier.

With winter demand already high, gas supplies through Ukrainian pipelines to Europe started to fall off dramatically as a result of the Russian blockade, prompting Western fears about insecurity in the energy sector.

http://today.reuters.com/news/newsarticle.aspx?type=topNews&storyid=2006-01-02T175439Z_01_SCH148325_RTRUKOC_0_US-RUSSIA-UKRAINE.xml

[sweetheart]

6. scotland is in the EU

I didn't feel any "shiver". Oh, might a conglomeration of 35+ nations
be come to be talked about like the united states... dread that.

The gas market is not the EU, nor its people. "shiver" my bum.

[DemoTex]

7. "The US has also expressed concern ... " WTF?

The US has also expressed concern, saying the move raised "serious questions about the use of energy to exert political pressure".

Somehow the "coalition's" 12-year embargo of Iraq, which may have caused 2 million deaths, was an "OK" use of political and economic pressure. Any other states' use of political and/or economic pressure is a big NO-NO. For some reason, the hypocrisy brings bile to my throat. Not unlike the "we don't torture, but we don't need laws against torture" mindset.