Gazprom

It’s On: Gazprom Prepares ‘Symbolic’ Bond Issue In Chinese Yuan

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china russia flags

– It’s On: Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan (ZeroHedge, April 10, 2014):

Curious what the fate of the petrodollar is? Look no farther than this Interfax update blasted moments ago by Bloomberg: “Gazprom Considers ‘Symbolic’ Yuan Bond Issue, Interfax Says.”

Bloomberg adds that the gas giant is considering proposals from potential organizers to market bonds in yuan, Interfax reports, citing people with knowledge of the matter.

  • Gazprom unlikely be able to gain more than $300m due to mkt volume, newswire reports
  • No mandates, deal timeline yet
  • Issue may add new investors, become a “topical” public relations act amid tensions with U.S., EU

Well, yes. It’s called “symbolic” for a reason. More importantly, it is a symbol of what happens when one can “create” money de novo without the presence of the world’s increasingly defunct reserve currency, either secured by gas or by future cash flows, i.e., unsecured.

Confused? Read:

Read moreIt’s On: Gazprom Prepares ‘Symbolic’ Bond Issue In Chinese Yuan

Ukraine PM Warns Russia’s ‘Economic Aggression’ Is Unacceptable

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Gazprom-Logo

– Ukraine PM Warns Russia’s “Economic Aggression” Is Unacceptable (Zerohedge, April 7, 2014):

“Russia was unable to seize Ukraine by means of military aggression,” Ukraine’s PM Yatsenyuk blasted, “Now they are implementing plans to seize Ukraine through economic aggression.” His comments come after Russia’s Gazprom raised prices for gas 81% from $268.50 to $485.50 (on the basis that the previous discount was a subsidy for allowing the use of the Black Sea port of Sevastopol, which Russia now has annexed) to which Yatsenyuk chided “political pressure is unacceptable, and we are not accepting the price of $500.” Mr. Yatsenyuk, as WSJ reports, said his government will not pay the new price and will raise the issue in the Stockholm Arbitrage court, which was selected by the two countries years ago to settle the gas disputes – but warned his people that the country should prepare for Russia switching off natural-gas supplies.

As The Wall Street Jorunal reports, Ukraine’s prime minister warned Saturday that the country should prepare for Russia switching off natural-gas supplies, as the energy monopoly Gazprom said it will raise the price for gas for Ukraine by 81%.

Speaking at a cabinet meeting, Arseniy Yatsenyuk, said Moscow’s price increase was a form of “economic aggression,” adding that Kiev will not recognize the new price and is ready to challenge it in the international arbitrage court.

Read moreUkraine PM Warns Russia’s ‘Economic Aggression’ Is Unacceptable

Gas Prices In Europe To Rise 50%, If It Abandons Russia’s Supplies – Energy Minister

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– Gas prices in Europe to rise 50%, if it abandons Russia’s supplies – Energy Minister (RT, April 4, 2014):

Domestic prices in Europe will go up by at least 50 percent, if it cuts supplies from Russia, according to Russia’s Energy Minister Alexandre Novak .

“Moving away from pipeline transportation of natural gas, construction of terminals and deliveries of liquefied natural gas will lead to an increase in gas prices in Europe from the current $380 per 1,000 cubic metres to at least $550,” Novak said in an interview to the Russia 24 TV Channel.

“And the question arises: are the economies of European countries ready to supply and consume gas at such a price?” the Minister asked.

The US has insisted that Europe needs to urgently cut its dependence on Russian gas, with the US Secretary of State John Kerry saying Moscow shouldn’t use energy exports as a political weapon.

Read moreGas Prices In Europe To Rise 50%, If It Abandons Russia’s Supplies – Energy Minister

Gazprom Hikes Gas Prices By $100 For Ukraine

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– Gazprom hikes gas prices by $100 for Ukraine – CEO (Voice of Russia, April 1, 2014):

Russian Gazprom CEO Alexei Miller on Tuesday announced the company would increase gas prices for Ukraine by $100 per 1,000 cubic meters beginning April 1.

Ukraine paid $268.50 per 1,000 cubic meters before the beginning of the month.

“In line with the current contract on delivering gas, the price for Ukraine in the second quarter [of 2014] will be $385.50,” Miller said.

Gazprom says Ukraine’s debt for unpaid gas bills stands at $1.711 bln

German Industry Goes To See Uncle Putin

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Putin-Gold

– German Industry Goes To See Uncle Putin (Testosterone Pit, March 27, 2014):

President Barak Obama went to Belgium – a trip planned long ago but repurposed since the Crimean debacle – to meet with European leaders, commemorate the 100th anniversary of World War I, draw iffy parallels between then and now, and announce that more sanctions against Russia were being concocted and would soon be forthcoming, even if Russia made no additional moves on the Ukraine. The EU and the US must not sit on their hands as Russia pursues “the old way of doing things,” he said. “That message would be heard not just in Europe but in Asia and the Americas, in Africa and the Middle East.”

Russian President Vladimir Putin might have had a field day listening to the speech. But he was busy. He was at his official residence in Novo-Ogaryovo near Moscow, meeting with German industry tycoons, including Joe Kaeser, CEO of multinational engineering conglomerate Siemens. It wasn’t an emergency response to the current sanctions spiral but had been planned during their last meeting in October.

Read moreGerman Industry Goes To See Uncle Putin

PM Yatsenyuk: Ukraine Will Have To Buy Russian Gas Even At $500 Per 1,000 Cubic Meters

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– Yatsenyuk: Ukraine will have to buy Russian gas even at $500 per 1,000 cubic meters (ITAR-TASS, March 22, 2014):“Our country is fully energy dependent on Russia. It is impossible currently to give up Russian gas [imports],” he said

Ukraine will have to buy natural gas from Russia even at $500 per 1,000 cubic meters should Moscow set such a price, Ukrainian parliament-appointed prime minister Arseny Yatsenyuk said on Ukrainian television.
“Our country is fully energy dependent on Russia. It is impossible currently to give up Russian gas [imports],” Yatsenyuk stated Friday.

Yatsenyuk returned from Brussels on Friday. “We continue talks on receiving gas from European Union member countries,” he told journalists in Borispol airport outside Kiev. He said he believes “gas from Europe will cost $150 less than Russian gas.”

Read morePM Yatsenyuk: Ukraine Will Have To Buy Russian Gas Even At $500 Per 1,000 Cubic Meters

Gas Talks Between Ukraine And Gazprom Cancelled, Naftogaz Chairman Detained On Corruption Probe

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– Gas Talks Between Ukraine And Gazprom Cancelled, Naftogaz Chairman Detained On Corruption Probe (ZeroHedge, March 21, 2014):

Yesterday we warned that the honeymoon is over as Ukraine expects gas prices to rise 40% as Russian discounts fade. Today it appears the situation is even worse:

  • *NAFTOGAZ, GAZPROM TALKS FOR MARCH 20-21 CANCELLED: INTERFAX
  • *UKRAINE POLICE DETAINS NAFTOGAZ CHAIRMAN BAKULIN: AVAKOV
  • *UKRAINE NAFTOGAZ RAID PART OF CORRUPTION PROBE, AVAKOV SAYS

The issues up for debate, of course, are supply and pricing of gas from Russia and the payment for over $2bn of existing debt owed. While Interfax reports that this was because the Ukraine gas company executive was unable to leave the country, which now appears due to corruption allegations (“there’s corruption going on here?”) but merely exacerbates any Russian gas retaliation concerns.

Read moreGas Talks Between Ukraine And Gazprom Cancelled, Naftogaz Chairman Detained On Corruption Probe

Another Russian Oligarch Dumped All His Stocks Ahead Of The US Sanctions

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– Another Russian Oligarch Dumped All His Stocks Ahead Of The US Sanctions (ZeroHedge, March 20, 2014):

Last week we discovered that Gazprom’s Chairman Viktor Zubkov sold his entire stake in the company days before the Crimean invasion (and subsequent sanctions and asset freezes). Today, on the heels of the latest round of US sanctions against Russia’s so-called “Putin cronies”; Cyprus-based oil trader Gunvor Group announced that co-founder Gennady Timchenko (estimated wealth $8.5 billion) – who was named on today’s sanctions list – sold his entire 44% stake in the company yesterday. The question is – as we show below – did the US Treasury tip Timchenko off to what was coming?

Gennady Timchenko

Gunvor Ensures Continued Operations…

Anticipating potential economic sanctions so to ensure with certainty the continued and uninterrupted operations of Gunvor Group Ltd’s activities, the shares of the company held by Mr. Gennady Timchenko were sold on March 19 from his personal holding vehicle to Mr. Torbjorn Törnqvist personally.

Read moreAnother Russian Oligarch Dumped All His Stocks Ahead Of The US Sanctions

Gazprom Chairman Sold ALL His Shares Just Before Russia Invaded Crimea

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– Gazprom Chairman Sold All His Shares Just Before Russia Invaded Crimea (ZeroHedge, March 14, 2014):

We are sure it is just coincidence – and awkward combination of luck and suspicious timing – but Vedomosti reports that Viktor Zubkov, the Chairman of Russia’s massive energy monopoly Gazprom, dumped his entire stake in the company just a few weeks before Vladimir Putin crossed the red line. Gazprom shares have dropped 25% in the last 3 weeks so his timing was impeccible.

20140313_gazprom

Via Vedomosti (Google Translate),

The Chairman of the Board of Directors “Gazprom” Viktor Zubkov has sold his stake in the company, it follows from the monopoly.

The change in share occurred February 11, 2014, the issuer learned about it on March 13.

Now Zubkov 0% stake in the company.

Read moreGazprom Chairman Sold ALL His Shares Just Before Russia Invaded Crimea

‘BRILLIANT’: EU Leaders Draw Up Plans To Send Some Of Their Stocks Of Russian Gas To Ukraine If Russia Cuts Off Supply

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Putin chess

– EU leaders draw up plans to send gas to Ukraine if Russia cuts off supply (Guardian, March 7, 2014):

Europe braced for possible battle with Moscow after Gazprom threatens to cut off gas supply if Ukraine does not pay bill

EU leaders are rapidly drawing up plans to send some of their stocks of Russian gas back to Ukraine and other eastern European countries that need it, if Vladimir Putin reacts to western sanctions over the Crimea crisis by starving the continent of energy.

Russia’s largest gas producer, Gazprom, said on Friday that Kiev had missed a deadline to pay $440m for gas received in February and threatened to cut off the country’s supply if it did not make the payment.

Read more‘BRILLIANT’: EU Leaders Draw Up Plans To Send Some Of Their Stocks Of Russian Gas To Ukraine If Russia Cuts Off Supply

Warning Shots Fired At OSCE Mission In Crimea; Russia Warns Of Treaty Force Majeure Over ‘Unfriendly NATO Threats’

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Ukraine map

– Warning Shots Fired At OSCE Mission In Crimea; Russia Warns Of Treaty Force Majeure Over “Unfriendly NATO Threats” (ZeroHedge, March 8, 2014):

Perhaps it is time to finally admit that anyone who thought Putin’s Tuesday press conference, which the market so jubilantly assumed was a case of “blinking” and de-escalating tensions with the west, was wrong. If there is still any confusion, following yesterday’s news that Gazprom officially threatened Ukraine with cutting off its gas supplies, as well as the storming of a Ukraine base by Russian troops – luckily with no shots fired so far – then today’s developments should any remaining doubts. Moments ago AP reported that as the latest, third in a row, group of OSCE inspectors tried to enter Ukraine, they were not only barred from doing so, but warnings shots were fired to emphasize the point by pro-Russian forces.

From AP:

An Associated Press reporter says pro-Russian forces refused to let a foreign military mission enter Crimea on Saturday.

After the officers had stopped, the armed men fired warning bursts of automatic weapons fire into the air to make other unidentified vehicles halt. No injuries were reported.

Read moreWarning Shots Fired At OSCE Mission In Crimea; Russia Warns Of Treaty Force Majeure Over ‘Unfriendly NATO Threats’

Gazprom Warns Of ‘Repetition Of 2009 Gas Situation’ In Ukraine

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– Gazprom Warns Of “Repetition Of 2009 Gas Situation” In Ukraine (ZeroHedge, March 7, 2014):

We have discussed the sword of Damocles that is hanging over the heads of the Ukrainian (and European for that matter) people for some time. The dominant role that Russia plays in providing energy is becoming critical, however, as Gazprom notes:

  • *GAZPROM SAYS TODAY IS DEADLINE FOR NAFTOGAZ TO PAY FOR FEB. GAS
  • *NAFTOGAZ OVERDUE PAYMENTS AT $1.89B FOR GAS SUPPLIES: GAZPROM
  • *GAZPROM SAYS NAFTOGAZ ISN’T OBSERVING CONTRACT
  • *GAZPROM: UKRAINE DEBTS CREATE ‘RISK OF RETURN TO SITUATION AT BEGINNING OF 2009’ (when Gazprom cut off Ukraine gas supplies)

Of course, the US agreed to $1b bailout yesterday – but that’s not supposed to be used as a direct transfer payment to the Russians.

Via Interfax,

The debt that Ukraine’s Naftogaz Ukrainy owes for Russian natural gas has risen to $1.89 billion, Gazprom CEO Alexei Miller told journalists.

“In fact, this means that Ukraine has stopped paying for gas,” Miller said.

“This is completely at odds with the provisions of the contract and international trade practice. For our part, we have always met and will meet our contractual obligations. But we can’t supply gas free of charge. Either Ukraine repays its debt and pays for current deliveries or the risk of returning to the situation at the beginning of 2009 will appear. We will notify the Russian government concerning the situation that is taking shape,” Miller said.

Read moreGazprom Warns Of ‘Repetition Of 2009 Gas Situation’ In Ukraine

Russia Threatens Retaliation To Sanctions, Announces Support For Crimean Referendum

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Vladimir-Putin1

– Russia Threatens Retaliation To Sanctions, Announces Support For Crimean Referendum (ZeroHedge, March 7, 2014):

It appears Obama’s latest “one hour” conversation with Putin has just made things downshift from bad to worse.

Moments ago Russia accused the European Union of taking an “extremely unconstructive position” by freezing talks on easing visa barriers that complicate travel between Russia and the EU over Ukraine.

“Russia will not accept the language of sanctions and threats“ and will retaliate if sanctions are imposed, the Russian Foreign Ministry said in a statement about agreements reached at an emergency EU summit on Thursday.

And assuring that the imminent Crimean referendum due in just over a week will rapidly deteriorate the current detente was overnight news that Russia’s upper house of parliament will support Crimea in its bid to join the Russian Federation, the speaker of the upper house of parliament said Friday. “If the people of Crimea decide to join Russia in the referendum, we, as the upper house, will certainly support this decision,” Valentina Matvienko said at a meeting with Vladimir Konstantinov, his counterpart in the Crimean parliament.

Read moreRussia Threatens Retaliation To Sanctions, Announces Support For Crimean Referendum

Ukraine Won’t Pay Russia For Gas, Has Billions In Obligations Due; Europe Promises Aid Money It Doesn’t Have

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Related info:

– It Begins: Gazprom Warns European Gas ‘Supply Disruptions’ Possible#

Gazprom-Logo

– Ukraine Won’t Pay Russia For Gas, Has Billions In Obligations Due; Europe Promises Aid Money It Doesn’t Have (ZeroHedge, March 4, 2014):

About an hour ago, the head of Russia’s top natural gas producer Gazprom said on Wednesday that Ukraine had informed the company it could not pay for February gas deliveries in full, further adding to tensions between Moscow and Kiev. Alexei Miller said Ukraine’s total debt to Gazprom for gas deliveries was nearing $2 billion. “Our Ukrainian colleagues informed us that they would not be able to pay in full for February gas deliveries,” he told Russian President Vladimir Putin.

As reported by Reuters, Miller added that Ukraine managed to redeem only $10 million on Wednesday from a total debt of $1.529 billion. He said that Ukraine’s debt would rise by $440 million on March 7, a deadline for payments. In other words, as of this moment the Ukraine already owes Russia $2 billion, or about double what John Kerry announced to much fanfare, the US would provide the country with in terms of aid. And considering that yesterday Gazprom announed that beginning in April it would end the gas pricing discount to the Ukraine, which lowered the price of gas to $268.5 per 1,000 cubic metres from around $400, this accrual is only set to get bigger with every passing day, and very soon Ukraine may get no Russian gas at all which was and continues to be the biggest leverage Russia has over the country which nuclear power plants provide less than half of its electricity needs.

Read moreUkraine Won’t Pay Russia For Gas, Has Billions In Obligations Due; Europe Promises Aid Money It Doesn’t Have

Futures Soar, Near Record As Putin Speaks, Softens Russian Stance On Ukraine

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– Futures Soar, Near Record As Putin Speaks, Softens Russian Stance On Ukraine (ZeroHedge, March 4, 2014):

Futures are soaring and are just shy of their record high first following news that the Russian military drill has ended, even if Russian troops stationed in the Crimea remain, but more importantly driven by a just completed press conference by Vladimir Putin in his residence outside of Moscow, in which the Russian leader appears to have softened his stance on Crimean aggression, saying he does not consider adding Crimea to its territory. What the market is focusing on is the repeat of Putin’s stance that he will not be sending troops to the Crimea yet (even though they are there already), and that he suddenly appears concerned about the impact on markets and the fallout from sanctions.

Putin speaks

The key highlights from the speech from Blooomberg.

  • PUTIN SAYS UKRAINE SUFFERED COUP
  • PUTIN SAYS UKRAINE GOVT OVERTHROW UNCONSTITUTIONAL, ARMED COUP
  • PUTIN SAYS YANUKOVICH AGREED WITH OPPOSITION TO SURRENDER POWER
  • PUTIN SAYS UKRAINE’S YANUKOVYCH DIDN’T GIVE ILLEGAL ORDER TO SHOOT
  • PUTIN SAYS UKRAINE USED TO ONE SET OF CROOKS REPLACING ANOTHER
  • PUTIN SAYS YANUKOVYCH IS UKRAINE’S LEGITIMATE PRESIDENT
  • PUTIN SAYS YANUKOVYCH ASKED RUSSIA TO SEND TROOPS TO PROTECT PEOPLE
  • PUTIN SAYS YANUKOVYCH HAS NO POLITICAL FUTURE
  • PUTIN SAYS UKRAINE POLITICAL LIFE HAS BECOME FARCE
  • PUTIN SAYS NO NEED TO SEND TROOPS TO UKRAINE YET
  • PUTIN SAYS RUSSIA’S MILITARY EXERCISE HAD BEEN PLANNED LONG AGO
  • PUTIN SAYS RUSSIA WOULD SEND TROOPS TO UKRAINE ONLY IN EXTREME CASE
  • PUTIN SAYS NO BLOODSHED IN CRIMEA
  • PUTIN SAYS RUSSIA TROOPS IN UKRAINE’S CRIMEA JUST REINFORCEMENT
  • PUTIN SAYS MARKETS REACTED NERVOUSLY TO EVENTS DUE TO U.S. POLICY
  • PUTIN SAYS POLITICS HAD “TACTICAL”, TEMPORARY IMPACT ON MKTS
  • PUTIN SAYS SANCTIONS AGAINST RUSSIA WOULD CAUSE MUTUAL DAMAGE
  • PUTIN SAYS CRIMEAN ADMINISTRATION IS FULLY LEGITIMATE
  • PUTIN SAYS RUSSIA NOT CONSIDERING ADDING CRIMEA TO RUSSIA
  • PUTIN SAYS CRIMEA SELF-DEFENSE BLOCKED UKRAINE FORCES
  • PUTIN SAYS WE DON’T PLAN TO FIGHT UKRAINIAN PEOPLE
  • PUTIN SAYS DOESN’T WANT TO RECALL AMBASSADOR FROM U.S.
  • PUTIN ORDERED RUSSIAN GOVT TO RENEW CONTACTS WITH UKRAINE GOVT
  • PUTIN SAYS WEST ASKED RUSSIA NOT TO BUY MORE UKRAINE BONDS
  • PUTIN SAYS NO IDEA WHO UKRAINE WILL ELECT AS PRESIDENT
  • PUTIN SAYS AGREES W/ UKRAINE PROTESTERS’ DEMAND FOR NEW LEADERS
  • PUTIN SAYS MET YANUKOVYCH 2 DAYS AGO, SAYS HE’S ALIVE

On the oh so sensitive topic of Russian gas:

Read moreFutures Soar, Near Record As Putin Speaks, Softens Russian Stance On Ukraine

It Begins: Gazprom Warns European Gas ‘Supply Disruptions’ Possible

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– It Begins: Gazprom Warns European Gas “Supply Disruptions” Possible (ZeroHedge, March 4, 2014):

We had previously warned that Putin’s “trump card” had yet to be played and with Obama (and a quickly dropping list of allies) preparing economic sanctions (given their limited escalation options otherwise), it was only a matter of time before the pressure was once again applied from the Russian side. As ITAR-TASS reports, Russia’s Gazprom warned that not only could it cancel its “supply discount” as Ukraine’s overdue payments reached $1.5 billion but that “simmering political tensions in Ukraine, that are aggravated by inadequate economic conditions, may cause disruptions of gas supplies to Europe.” And with that one sentence, Europe will awaken to grave concerns over Russia’s next steps should sanctions be applied.

It would appear this is the most important map in Europe once again…

russian-gas-supplies-to-europe-via-ukraine

Some recent history…

Read moreIt Begins: Gazprom Warns European Gas ‘Supply Disruptions’ Possible

How A Spanish Scam Artist Punk’d The Ukraine For $1.1 Billion

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– How A Spanish Scam Artist Punk’d The Ukraine For $1.1 Billion (ZeroHedge, Dec 4, 2012):

A snapshot of (quite amusing) “New Normal” dealmaking in the insolvent continent.From OilPrice:

Ukraine Crushed in $1.1bn Fake Gas Deal

Certainly the folks at Gazprom are having a good snicker, reveling in the mockery that has been made of what should have been a landmark Ukraine-Spain gas deal that would have loosened Russia’s gas grip on Kiev.

Everyone wondered how Russia would respond to Ukraine’s attempt at gas independence. But this is what happens when you mess with Gazprom.

Read moreHow A Spanish Scam Artist Punk’d The Ukraine For $1.1 Billion

Polish President killed over opposing landmark Gazprom deal?

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See also: Jane Burgermeister: Polish Plane Crash Truth Video

Polish Prime Minister Donald Tusk is set to seal a key gas deal with Russia’s Gazprom days after the death of  opponents to the contract – including Polish President Lech Kaczynski – in a mysterious plane crash in Smolensk, Russia, reports Polskaweb.

Under the contract worth an estimated 100 billion dollars – the biggest business deal in the history of Poland – Poland is to increase its imports of Russian gas.

The contract to buy gas from Gazprom until 2037 will make Poland 100% dependent on Russian gas for the next 28 years in spite of the announcement of the discovery of huge gas reserves in Poland in April just before the memorial service in Katyn, Smolensk.

Poland could have 3 trillion cubic metres of reserves of shale gas, enough to satisfy domestic demand for more than 200 years.

Europe’s gas reserves could jump 47% as a result of Poland’s gas reserves, according to the Russian newspaper Kommersant.

Poland currently consumes 14bn cubic metres of gas a year and imports more than 70% of it from Russia.

The development of its own shale gas deposits could have allowed Poland to satisfy all its gas needs, and even export ga, becoming a competitor to Gazprom. Shale gas already accounts for up to 20% of US natural gas production.

President Lech Kaczynski and many other opposition party politicians, who were killed in a plane crash in Smolensk, had opposed the Gazprom deal.

Earlier this year, Russian energy giant Gazprom and Polish gas monopoly, PGNiG, signed agreements extending gas deliveries until 2045.  Under one of the agreements, Gazprom gas supplies to Poland will increase from 8 to 11 billion cubic meters per year and the current agreement will be extended by 15 years, through 2037.

But the deal was put on ice after the opposition party had threatened legal action over the contract which was so disadvantageous to Poland’s economic and energy interests, alleging „lobbying” (bribery?).

Kaczynski said that he was „deeply worried” about the contract which would have made Poland even more dependent on Russian gas for 28 years.

It was also argued that Poland already had a contract with Russia until 2022, and there was no need to rush into a 30 year contract.

Read morePolish President killed over opposing landmark Gazprom deal?

Russia halts gas supplies to European countries

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Russia has halted all gas supplies to European countries including Turkey and Greece.

The move comes amid a deepening rift between Russia and Ukraine, which hosts a pipeline supplying gas from its bigger neighbour to countries across Europe.

Bulgaria and Macedonia also reported that all supplies of Russian gas had been cut, while Romania’s pipeline operator said that its supplies had been cut by 75 per cent.

Related articles:
– Ukraine: Russia stops sending gas to Europe (AP)
– EU faces deepening energy crunch over Russian gas (Reuters)
– Gazprom Halts Gas Supply to Europe Via Ukraine Pipes (Bloomberg)

Bulgaria’s finance ministry said the country was facing a crisis. Petar Dimitrov, the economy and energy minister, said: “Russia and Ukraine must find an urgent solution because the energy systems of dozens of countries are at risk.”

The European Commission condemned the cuts as “completely unacceptable”. In an unusually strongly worded statement, it demanded that Russia restore supplies “immediately”.

Russia ordered a reduction in gas flow to Europe via Ukraine on Monday, a measure it said was to stop its neighbour from stealing fuel. Ukraine said the move would jeopardise supplies to the rest of Europe, which is facing freezing temperatures.

Read moreRussia halts gas supplies to European countries

Putin orders cut in Ukraine supply

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Vladimir Putin, Russia’s prime minister, yesterday ordered Gazprom, the Russian energy giant, to reduce gas supplies to Ukraine bound for Europe in a move that escalates the dispute between the two countries, writes Isabel Gorst in Moscow .

Gazprom claims Kiev has been stealing gas from transit pipelines since it cut off supplies to Ukraine on January 1 after talks about a new gas deal collapsed.

Mr Putin ordered Alexei Miller, chief executive of Gazprom, to cut supplies to the Ukrainian transit system by the same volume as Ukraine had taken.

Naftogaz, Ukraine’s state gas company, said it had been notified by Gazprom that it would cut transit supplies to Europe by 65.3m cubic metres a day to 221.8m cubic metres per day. “Gazprom has in fact cut volumes of transit gas to European customers,” Naftogaz said.

Read morePutin orders cut in Ukraine supply

Nine European countries hit by gas shortages amid Russia-Ukraine row

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A Ukrainian worker at a gas storage and transit point in Boyarka, outside Kiev (Sergei Chuzavkov/AP)

Nine countries in and around Europe have now reported problems with their gas supply as a result of Russia’s dispute with the Ukraine, after Slovakia, Greece and Croatia today disclosed they were experiencing drops in gas pressure.

The development comes as an emergency mission from the European Commission in Brussels and the Czech Presidency of the EU left this morning, bound for Kiev for talks with the Ukrainian authorities as the international crisis deepened.

The delegation of Czech diplomats and senior European officials also plans to meet senior officials from Gazprom, the Russian state gas monopoly, which cut supplies to Ukraine on January 1

Read moreNine European countries hit by gas shortages amid Russia-Ukraine row

Russia cuts gas to Ukraine over unpaid bills

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Gazprom chief executive says full gas shipments to European Union will continue uninterrupted

Russia cut natural gas deliveries to Ukraine today after negotiations failed to resolve a dispute over unpaid bills and the price for supplies this year.

Gazprom, the Russian state-owned gas provider, lowered pressure at 7am GMT in pipelines to Ukraine which also carry in transit about 80% of Russian gas consumed by other countries in Europe.

Ukraine said yesterday that it had paid $1.5bn (£1bn) in debts for supplies in November and December but Gazprom said it had not received that money from RosUkrEnergo, an intermediary company. It is also demanding a further $600m in fines which Ukraine said it is not yet prepared to pay.

The last time exports were terminated – in January 2006 – there was an immediate impact elsewhere in Europe as Ukraine allegedly siphoned off gas meant for onward transit. But the Gazprom chief executive, Alexei Miller, said it would continue full shipments to the European Union, which gets about a quarter of its gas from the Russian company, most of it through pipelines that cross Ukraine.

Read moreRussia cuts gas to Ukraine over unpaid bills

Russia’s new Great Game

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Vladimir Putin (left), then the president of Russia, met with Muammar Qaddafi, the Libyan leader, in April to discuss arms, energy and debt. AFP

Employing strategies redolent of a new Great Game, Russia has stepped up its diplomatic and trade activities in the Middle East and North Africa in a bid to enhance its geopolitical clout and gain access to, and at least partial control over, the region’s oil and gas reserves.

Among the former global superpower’s tactics: linking arms deals and debt-forgiveness to energy deals.

The strategy has been most apparent in former client states of the ­Soviet Union including Libya, Iraq and Syria, although by no means limited to such countries. Moreover, Moscow has not shied away from courting the authoritarian regimes of countries such as Iran, Syria and Libya that are or have been shunned by the US and other western governments.

Read moreRussia’s new Great Game

Gazprom Connects to Iran

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Iranian President Mahmoud Ahmadinejad with Gazprom CEO Alexey Miller in Teheran, July 13, 2008

Gazprom has signed a memorandum on cooperation in production and transportation of oil and natural gas with the National Iranian Oil Co. The Iranian company, which all other oil companies in the world refuse to work with, is promising Gazprom “a full package of projects.” The memorandum was signed by Gazprom CEO Alexey Miller, Iranian Oil Minister Gholam Hossein Nozari and NIOC managing director Seifollah Jashnsaz. Gazprom will thus have the chance to strengthen its position in the countries with the world’s second largest gas reserves (proven reserves of 28.13 trillion cu. m.).

Read moreGazprom Connects to Iran