Putin Cuts Gas To Ukraine In Bid To Freeze Democracy In Central Europe

Russia's neo-Stalinist president and Chabad "chief rabbi" of Russia Berel Lazar's good friend Vladimir Putin has cut all gas to Ukraine, potentially freezing to death many elderly people there and in the Baltic states. Ukraine's crime? Democracy.

First, Kevin Kerr of MarketWatch reports from Estonia on the potential for this to happen, 11 days before it actually took place:

…Like most of the Baltic countries, Estonia has relied on Russia to provide a vast amount of its energy supply throughout the years. But that relationship has soured somewhat with Estonia. A far worse situation is brewing in some of the former Soviet Union States.

For example, the Ukraine has been a thorn in the side of Russia and the Putin administration. Now Russia is pursuing a geopolitical goal to block Ukraine from joining NATO and the E.U. something that Ukraine certainly wants.

Turning off the spigot and turning up the heat

The Kremlin is well aware that energy is a tried and tested political weapon and they are ready and willing to use it. When I turned on the evening news last night from Russia, watching from my home in Estonia, the first three stories pertained to the Putin administration, energy and the cold, cold winter.

The Kremlin is seeking control over pricing of the vast pipelines that crisscross the Ukraine. These vital pipelines are at present the primary gateway for the wealthy European market. The Kremlin has Rubles on the brain and sees Ukraine as a major impediment to the riches that lie beyond.

Other former Soviet Union States like Belarus have capitulated to Russia and continue to given Russia a cut-rate, bargain basement deal. As a reward Belarus will continue to pay only $49 a thousand cubic meters for Russian Gas in 2006.

On the contrary, the defiant Ukraine is getting socked with an increase from $50 per thousand cubic feet to a whopping $160-$230 price tag in 2006. Other countries feeling the energy pinch include: Moldova ($150-$160), Estonia ($120-$125), Lithuania ($120-125) and Latvia ($120-$125).

It could be a very long and cold winter for many of these countries citizens that live on fixed incomes. Capitalism has provided many comforts not seen during communism and war, but has also brought with it the growing pains of a free market economy.

In an attempt to further legitimize its position, the Putin government and the state owned Rosneft, (formerly Yukos), is seeking out Western leaders to put a better face on the situation and encourage Western investment in the major Russian energy company.

'Bushneft or bust'

When the Kremlin seized Yukos and jailed its leader Mikhail Khordokovsky in Siberia for "tax evasion," the wheels of change were set in motion, and they continue to roll on.

Another major shift just occurred as ousted German leader Gerhard Schröder, plagued by unemployment in his country, decided not to become a statistic himself and accepted a job in a top post with Gazprom the giant energy company in Russia.

Ironically Gazprom is behnd an ambitious pipeline project between Russia and Germany that Schröder championed while in office. Actually, it´s not that ironic, just disturbing.

In a similar move, the Kremlin is purportedly trying to entice former U.S. Commerce Secretary Donald Evans to come on board as the new chairman of Rosneft. Clearly all of this is an attempt to calm the fears of investors from the West ahead of the Rosneft initial public offering set for 2006.

"This is the latest Kremlin strategy to co-opt and hush the Western nations by making them complicit in its crimes... When everyone is guilty, then no one is guilty goes the logic... Oil, gas, politics, intimidation, and repression are all mixed together," observed chess master and political dissident Garry Kasparov In a recent Wall Street Journal article.…

Now, today's London Telegraph breaks the news – Russia is freezing out Ukarine:

Russia took Europe to the brink of a winter energy crisis yesterday when it carried out a Cold War-style threat and halted gas deliveries to Ukraine, the main conduit for exports to the West.

With a quarter of its gas supplied by Russia, Europe is facing serious disruption and price rises for as long as the dispute rumbles on.

Moscow turned off the tap at 10am after Ukraine refused to sign a new contract with the Russian state monopoly Gazprom quadrupling prices.

Critics of the Kremlin say the rise was punishment for the Orange Revolution in 2004 which brought in a westward-leaning government that promised to remove Ukraine from the Kremlin's sphere of influence.

The American State Department said that "such an abrupt stop creates insecurity in the energy sector in the region and raises serious questions about the use of energy to exert political pressure".

The European Union has called an emergency meeting of energy ministers on Wednesday.

Britain is less vulnerable than mainland Europe because it does not receive direct supplies from the former Soviet bloc.

But as other countries seek to shore up their reserves, less gas is likely to be pumped through the pipeline that links the Continent with Britain. That could mean higher prices and, if there is no quick resolution, possible breaks in supplies.

The European Commission says that most countries have between a week and two months' emergency reserves.

Ukraine has upset Moscow by pushing to join the EU and Nato. However, Russia insists that the price rise merely brings Ukraine in line with the price that most of Europe pays: about $240 per 1,000 cubic metres.

President Vladimir Putin adopted almost warlike terms when he spoke on television as the hours ticked by before the ultimatum expired.

"If no clear response [from Kiev] follows, we will conclude that our proposal has been rejected," he said.

If Ukraine's reserves run out, it could be tempted to siphon off gas intended for other countries. It claims the right to do so in lieu of transit fees.

The cut-off coincided with Russia assuming the rotating presidency of the G8 leading industrialised nations.

In Britain, millions of families started paying higher fuel prices yesterday.

Scottish and Southern Energy raised prices by 13.6 per cent, adding approximately £50 to the average annual bill, while electricity charges will go up by 12 per cent, or about £30 a year.

Npower puts its rises into effect today, adding 14.5 per cent for gas and 13.6 per cent for electricity.

This thug is Berel Lazar's close friend. Lazar shills for him. Lazar even intercedes for him in Washington.

Wake up Jews – Chabad is your enemy.

UPDATE: Russia restores gas to central and western Europe – but not the Ukraine. The Financial Times reports after the jump.

Gazprom, the Russian energy company, on Tuesday said it had fully restored its gas supplies to customers in Europe after a disruption caused by a dispute with neighbouring Ukraine.

Russia restored deliveries via the Kiev pipeline to Europe in response to appeals from European countries, who had complained of a drop in supplies after Russia cut its feed to Ukraine because of a disupte over pricing.

“With the aim of preventing a possible energy crisis, caused by Ukraine illegally taking gas, Gazprom has taken the decision to deliver additional gas into the gas transport system of Ukraine,” the company said in a statement on Monday night.

It stressed that the additional delivery was “not designed for Ukrainian consumers but is meant for transit through the territory of Ukraine for delivery to consumers outside the borders of Ukraine.”

European countries on Monday suffered large cuts to their gas supplies as the bitter stand-off between Russia and Ukraine over gas prices intensified.

Supplies of Russian gas to Italy fell by 25 per cent, according to Eni, the country’s biggest oil and gas supplier. Deliveries of Russian gas to France dropped up to 30 per cent, Gaz de France said. Many central and eastern European countries, which depend heavily on gas from Russia, reported even larger declines.

European governments urged Russia and Ukraine to resolve their dispute over the price Moscow charges the former Soviet republic, which reached a head on January 1 when Russia cut the amount of gas flowing into the pipeline. The European Union is due to hold a crisis meeting in Brussels on Wednesday.

Europe obtains a quarter of its gas from Russia, and around 90 per cent of its supply crosses Ukraine by pipeline. In spite of assurances from Russia that its dispute with its neighbour would not affect the region’s gas supplies, the pressure fell sharply on Monday in one of Europe’s principal import pipelines.

Gas flows through Slovakia’s long-distance pipeline - the main gateway for Russian gas to western Europe - had dropped 30 per cent on Monday, according to the economy ministry. Hungary, one of the most vulnerable countries in the region because it relies on Russian gas for almost 40 per cent of its total energy needs, saw supplies drop by half on Sunday night.

Poland said it was receiving about a third less gas through the pipeline, while Austria’s OMV, the oil and gas company, said its supplies of Russian gas had fallen by the same amount. The former Soviet republic of Moldova said it had not received any Russian gas for two days.

Russia, which this month took over the rotating presidency of the Group of Eight industrialised nations, faced growing criticism from abroad for its hardball tactics. On Monday the International Energy Agency warned that Russia’s international reputation could be jeopardised by its actions.

“They have a great reputation as an energy supplier but this is now at risk with recent events,” said Noé van Hulst, director of policy analysis at the IEA, the consuming nations’ watchdog.

The IEA and EU said the situation was “manageable” in the short term because many European nations had a lot of gas in storage. However, cuts to homes and businesses cannot be ruled out if supplies are not restored soon. Intensive gas users have been ordered to switch to oil in some countries.

Russia and Ukraine traded bitter accusations on Monday, with the row showing no signs of being resolved. Russia accused Ukraine of stealing 100m cubic metres of gas worth $25m from the pipeline in the first 24 hours of the cut-off. Ukraine’s president, Viktor Yushchenko, denied the charge, saying there had “not been a single cubic metre of gas from Russia” for several days.

Ukraine has said it will take only the amount it is entitled to for transporting the gas through its territory – about 15 per cent of the total flow.

Comments

[MP]

Perhaps you can enlighten us how, by charging Ukraine for the "going market rate" for natural gas, Russia is committing "a crime"? Also, even if it were a crime, why exactly should Jews care about the fate of their long-time friends, the Ukrainian anti-Semites?

[Jath]

Also, even if it were a crime, why exactly should Jews care about the fate of their long-time friends, the Ukrainian anti-Semites?

Maybe they shouldn't , but if we follow this logic , we shouldn't care about much of the rest of the world either and certainly not care about helping the former and current malchus harisho , Russia !

[MP]

The Rabbi of Russia should be friendly to whoever is/will be in power there, even if it was a "new Stalin". This is the old derech Isroel sovo of Jewish shtadlonus. More specifically, I do not see anything evil about Putin, he is a Russian patriot who is looking out for his nation's interest, as is his right.

But, forgetting the Jews for a moment, what about the natural gas prices? Does Russia not retain the right to manage its natural resources and to sell them at market rates? Does it conversely not retain the right to subsidize the same for its allies? Where is the "evil" deed here?

[MP]

BTW, I should add that I would also expect the Rabbi/Rabbis of Ukraine to befriend the Ukrainian government. I just do not think that Jews at large give a damn about Ukraine, nor should they be expected to. As to democracy there, it is very questionable who really came to power with the "orange" revolution.

Also, Russia is our natural ally in the war against the Islamic terrorism (putting the Iranian reactor issue aside for a moment) and should be treated / cultivated as a friend by the Jewsih community.

[Shmarya]

"Also, Russia is our natural ally in the war against the Islamic terrorism (putting the Iranian reactor issue aside for a moment) …"

LOL!

And I suppose the crushing of the Russian Jewish Congress, the Protestant Church, Baptists, etc. is all fine with you. After all Chabad equals Judaism, now doesn't it?

[MP]

Address the "gas crime" firts.

[Shmarya]

The more fascist the county, the cheaper the gas. But again, that's fine with you, isn't it?

[MP]

Can't you read? I asked you: what crime is Russia/Putin committing here in respect to its gas pricing? Address that first.

[Shmarya]

Oh, I get it. You're a Chabadnik. You don't understand morality.

What crime did Hitler commit by closing Jewish-owned businesses? No crime. It was legal under German law. By killing German Jews? No crime, because it was legal under German law.

Get it now?

[MP]

I get it. Russia charging market rates for her gas is similar to Hitler's y"s murder of Jews. OK then...

[Shmarya]

No, you do NOT get it. Those "market rates" are rigged. Further, Putin "removed" the former gas company leadership (too supportive of democracy, they) and put in his own thugs. Putin is clear – do my bidding or freeze.

But this all escapes you. Why? Because you are a Chabadnik and your shluchim and rabbis behave this way all the time.

[MP]

Oh, the price is "rigged"? Then surely from now on Ukraine will purchase natural gas from another party at lower rates that are not rigged. Nothing to worry about then...

[Shmarya]

I guess that would work if there were another supplier – but there is no other supplier.

Ever hear of OPEC? The Oil embargo?

[er]

So Russia is part of OPEC now?

[MP]

No other supplier? OPEC? Oil embargo? As per usual – you do not know jack.

Ukraine announced last week it had signed an extension of its agreement with Turkmenistan, which supplies about half of Ukraine's natural gas.

Still, experts project that Ukraine will run out of natural gas around the summer.

- CNN

I guess the poor Ukrainians will just have to freeze their butts off this summer! What an unbelievable idiot!

Wow! This Nazi bastard mr. scotty outdid himself again. Go join your friend hitler six ft under, where you belong.

[Shmarya]

MP –

Try to process. Turkmenistan can't make up for all the gas Russia doesn't sell. Ukraine has to use its reserves. But it cannot go through most of them – it needs them for possible wars, etc.

So, what happens?

Ukaraine shorts the Baltic countries and the West, just as the article I posted says (if you would actually READ IT, you might LEARN something).

Then what happens? People freeze.

Now, you piece of Chabad crap, process this, as well: Putin did this to stop DEMOCRACY. He's a thug.

Chabad supports Putin and that support helps Putin redo Stalinism and fight democracy.

But, why would you care about that as long as your palms are greased from the Putin machine?

Why not crawl over to 770 and bow down to your idol.

[WatchfulBabbler]

Around 80% of Russian-European gas exports (about a quarter of European gas imports total) go through the Brotherhood pipeline, though Russia has been working to cut around Ukraine with the Yamal and Blue Stream pipelines. As a result, Ukraine has profited handsomely from an accident of Soviet planning: like Belarus and Moldova, they've gotten cheap gas, but also have bunkered a lot of gas (leading to some hefty fines from Russia) and have allowed much of the pipeline to fall into disorder, endangering the Gazprom supply line to Europe.

But Ukraine also bases the Black Sea Fleet, and in the '90s they were known to play hardball with Russia's navy before the '97 Sevastopol agreement. Lately, the Orange government has been making noises to the effect that the Black Sea Fleet may cease to be welcome long before 2017 -- a situation exacerbated by the unscheduled naval landing exercise in March. The Kremlin cutoff of gas and hardball tactics on pricing has more to do with Ukraine's shifting stance on basing Russian military forces as it does with the pretext of 'bringing gas prices in line with the market.'

However, it's unlikely that this is anything more than a careful, if unchoreographed, kabuki dance: Russia can't afford to stop flow through Brotherhood, Ukraine is almost wholly dependent upon Gazprom, and Europe isn't going to countenance anything that might disrupt their energy security (it's in their interest, after all, to keep Russia as their primary gas supplier lest the Kremlin look to markets eastward). Likewise, the other BLACKSEAFOR partner nations aren't enthused about anything that might disrupt Black Sea stability, so there's intense international pressure to keep the Ukraine-Russian basing relationship stable. Like animals locking horns, this is basically each side showing how far they're willing to go in negotiations. (Pretty far, it seems.)

None of this, I should hasten to add, changes the fact that Putin has almost completed the task of turning Russia into a corporatist state, to the consequent loss of liberties and freedom: the NGO bill is just the latest example of his domestic policy and the gas shutoff, of his foreign policy. One party, one church, one nation: we've been here before.

[Isa]

Natural gas?
America WIll have a problem. In order to build a power plant easily natual gas is specified because it is so clean and contributes less to greehouse gases OK Guess who has to spend more to heat their houses because there is more demand for natual gas? Homes just cannot go back to coal. It is the power plant that should use coal and spend extra to clean it up. Of course, that may not be the issue as getting permits to build a coal powered plant may be next to impossible to obtain cause of the environmental wackos.
Worry about America

[EnoughDreck]

Scotty boy - keep farting in the wind in the direction of Ukraine and they will have plenty of gas, schmuck.

mr. scotty,

u seem to be very distressed by this worl rnowened organization, cult caled habad. why, may i ask, are you so intimidated by them folks. it's not like you are really having much of an influence with this website to persuade anyone to your convictions. besides, they are so massive of a community worldwide that your minor allegations are so insignificant, like a match in the face of a bonfire. so, please answer me, why it is that you continue waging this battle that you konw very ell you'l never win. i heard that today habad celebrates a victory over a recent enemy who tried to start up iwth them and he was smeared to pieces by their great attorneys and biased judges. so, where exactly are you heading sir?

thanx

[Shmarya]

Pursue truth.

[sharon]

Who backs this site, please? Who does the research in the articles presented here? What is the background of the editorial staff?