Tuesday, January 13, 2009

Ukraine Refuses to Open Pipeline, Halting Start of Gas Flows to Europe

The gas pumping station at Sudzha, Russia. Associated Press

From The Wall Street Journal:

A done deal to restart Russian gas exports to Europe began to unravel after Ukraine refused to open its transit pipeline network at the last minute, prolonging a dispute that has left swaths of Europe in the cold.

The European Union-brokered deal, agreed on Monday, was expected to see the first transit gas cross the Russia-Ukraine border this morning. Supplies were cut after a pricing quarrel between Russia and Ukraine halted all transit, leaving hundreds of thousands of people across the EU without gas in mid-winter.

Read more ....

My Comment: The Ukraine wants the west to bail them out, or Russia to give them preferential rates on the natural gas that they use. This crisis is not going to be resolved soon.

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