Gazprom Halts Natural Gas Deliveries to Ukraine

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MOSCOW — The Russian energy giant Gazprom announced on Wednesday that it had halted deliveries of natural gas to Ukraine because of a pricing dispute.

Gazprom has not received advance payment for deliveries of natural gas in July, Alexey B. Miller, the chief executive of Gazprom, said in a statement on Wednesday, and had cut the flow of natural gas to Ukraine immediately.

“Gazprom will not deliver gas to Ukraine at any price without prepayment,” Mr. Miller said.

One day earlier, Naftogaz, the Ukrainian state energy company, said it would cease buying Russian gas because of disputes over prices and the breakdown of talks mediated by the European Union to negotiate a new contract.

http://www.nytimes.com/2015/07/02/business/international/gazprom-ukraine-natural-gas-deliveries-russia.html?_r=0

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1. EU 'frustrated' as Russia-Ukraine gas talks break down

EU mediators have complained of bad will on both sides after Russia-Ukraine gas talks broke down, posing questions on energy security.

Maros Sefcovic, the EU energy commissioner, said in Brussels on Wednesday (1 July): “I think you see my frustration. I’m not trying to hide it”.

“We need a much stronger demonstration of political will from both sides”.

He spoke after mediating talks between the Russian and Ukrainian energy ministers in Vienna the day before, which broke off without a deal.

https://euobserver.com/energy/129414

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2. Russia stops gas supplies to Ukraine as Kiev turns to EU neighbours

By Alexandra Mayer-Hohdahl and Peter Spinella, dpa
Moscow/Brussels (dpa) - Russia cut off gas shipments to Ukraine on Wednesday after the two countries failed to strike a new energy deal, with Kiev expected to seek supplies from its EU neighbours instead.

Cash-strapped Ukraine has been heavily dependent on energy from Russia and is also a key transit country for supplies to western Europe. The European Union has brokered negotiations between the two sides amid strains over the conflict in eastern Ukraine.

Russia had agreed to deliver gas to Ukraine at a set price and in return for prepayments until the end of March. A new round of EU-mediated talks between the two sides in Vienna on Tuesday evening failed to produce a new gas-supply deal.

"What we lacked in the end was enough ... political will," said European Commission Vice President Maros Sefcovic, who brokered the talks. "The lack of will was clearly demonstrated on both sides."

http://www.dpa-international.com/news/international/russia-stops-gas-supplies-to-ukraine-as-kiev-turns-to-eu-neighbours-a-45801451.html

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3. Russia ready to return over 20 Ukrainian ships based in Crimea to Ukraine

ST. PETERSBURG, July 1 /TASS/. Russia is ready to hand over more than 20 Ukrainian warships that are still based in Crimea to Ukrainian military when such a decision is made, a source at the General Staff of the Russian Navy told journalists on Wednesday.

"As soon as peace is established, we will take more than 20 Ukrainian ships to the neutral waters to hand them over to Ukrainian Navy representatives," the source said.

According to him, the Ukrainian ships are deployed at the Russian Black Sea Fleet’s home bases. They are fully isolated and are not used in everyday activities. The Russian military guarantee their security.

The source clarified that Ukraine had received 45 out of 66 ships and vessels. "There had been 70 Ukrainian ships and vessels in Crimea before March 2014. Several vessels were scrapped early in March 2014 by decision of the Ukrainian military agency," the source explained.

http://tass.ru/en/russia/805297

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4. Cut Russia's Power Line

Over the past several months, Russia has been escalating its belligerent behavior towards its European neighbors. Russian-backed separatists have been shelling Ukrainian military positions, Russian bombers have increased their encroachment within the airspace over numerous European countries, and Russian hackers have even breached the White House's computers and read the president's emails.

As tensions continue to rise, Western powers are getting ready to impose a new round of sanctions to target Russia's energy and financial sectors should Russian-backed insurgents seize more Ukrainian territory. However, the Russian economy is starting to show signs of equilibrium while the Ukrainian economy is suffering more and more.

Western sanctions along with sliding oil prices helped, for a while, to slow investment in Russia and slide its economy into a recession. In 2014, Russia suffered $150 billion in net capital outflow and Russia's central bank is forecasting a loss of $100 billion this year. While Russia's central bank sees sanctions staying well into 2018, Russian officials are not worried over new sanction threats, stating that the worst of Russia's economic worries is over.

Are they right? Most likely.

http://www.usnews.com/opinion/economic-intelligence/2015/07/01/us-and-eu-must-do-more-to-sanction-russian-energy-sector

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5. Gazprom confirms gas delivery cutoff to Ukraine on July 1

MOSCOW. KAZINFORM - Russian energy giant Gazprom has shut the valves for gas deliveries to Ukraine and will not deliver any fuel until Kiev makes a prepayment, Gazprom CEO Alexei Miller said Wednesday.

"Ukraine has not made a prepayment for gas deliveries for July. As of 10:00 this morning, July 1, Gazprom has halted gas deliveries. Gazprom will not deliver any gas to Ukraine at any price until there is a prepayment," Miller said.

On Tuesday, Ukraine's Energy Minister Volodymyr Demchyshyn said the government had rejected Gazprom's gas price offer of $247 per 1,000 cubic meters. The proposal was made at the trilateral group meeting in Vienna that included an EU representative.

Ukraine wants to buy Russian gas at a discount of 30 percent, or $100 per 1,000 cubic meters, according to Sputnik International.

http://www.inform.kz/eng/article/2792646

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6. . nt

[Jefferson23]

7. And the beat goes on..thanks for all the links. n/t