Europe Goes ‘All In’: Will Sanction Rosneft, Gazprom Neft And Transneft

Europe Goes “All In”: Will Sanction Rosneft, Gazprom Neft And Transneft (ZeroHedge, Sep 7, 2014):

Until this moment, the main reason why everyone mostly dismissed Europe’s sanctions against Russia is that despite all its pompous rhetoric, Europe consistently refused to hit Russia where it would hurt: its energy titans Gazprom, Rosneft And Transfneft. The reason is simple: by imposing sanctions on these core energy exporters, Europe would directly threaten the stability of its own energy imports (Russia accounts for up to 30% of German gas imports), and as winter approaches with every passing day, playing with the energy status quo would seem like economic suicide. This all appears to have changed last Friday, when as the FT reports from a leaked copy, Europe’s latest sanctions round will boldly go where Europe has never dared to go before, and impose sanctions on the big three: Rosneft, Gazprom Neft and Transneft.

Read moreEurope Goes ‘All In’: Will Sanction Rosneft, Gazprom Neft And Transneft

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

xi-jinping-vladimir-putin

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan (ZeroHedge, Aug 27, 2014):

Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom’s CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People’s Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.

Until now.

According to Russia’s RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

Read moreThe Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Gazprom To Europe: We Own You (At Least Until 2016)

–  Gazprom To Europe: We Own You (At Least Until 2016) (ZeroHedge, Aug 14, 2014):

It is no secret that in scrambling to find an alternative to Russia’s energy-export dominance, Europe is actively seeking to recreate the US shale miracle (at least superficially, recall that a month ago Germany shelved shale-gas drilling plans until at least 2021, when it would again reassess the shale ban). Curiously, one of the few places that features as a most probable candidate for shale drilling, is none other than Ukraine itself whose Dnieper-Donets basin is a place targeted by local energy company Burisma, where as we have reported extensively in the past, none other than Joe Biden’s son, Hunter, has been strategically placed as a director to give the US a front line of sight into drilling developments.

There is one problem, however, and a rather major one at that: it will take Europe years, in a best case scenario at that, before it can bring its shale output online. In fact, according to Gazprom’s quarterly report released on Wednesday, shale gas production in Europe could be possible in Europe not earlier than in 2016-2018. Which, of course, is Gazprom’s polite way of saying that for at least the next two years, and likely far longer, European marginal gas needs will be met by the dreaded Russian semi-nationalized monopoly, which in turn means that for all the posturing, the Kremlin will have an exclusive “right of first refusal” to determine European economic growth with the literal push of a button.

“Commercial shale gas production in Europe can begin not earlier than in 2016-2018 even with positive geological surveys. But production volumes will not bring about major changes in the European gas market due to a decline in conventional gas production,” the report said.

Read moreGazprom To Europe: We Own You (At Least Until 2016)

Ukraine Prepares To Impose Russian Gas Transit Ban, Commit Economic Suicide

SUICIDE-GUN

Ukraine Prepares To Impose Russian Gas Transit Ban, Commit Economic Suicide (ZeroHedge, Aug 8, 2014):

While Ukraine has long since ceased being a customer of Gazprom (for the simple reason being that it can’t afford to pay for historical gas purchases let alone future ones, and with a long cold winter just 3 months ahead, Kiev is praying that its brand new Western “allies” will give it the loans it needs to buy Europe-sourced gas), the bulk of Russia-sourced gas into Europe still transits through Ukraine.

russian gas ban

Not surprisingly, Ukraine correctly understands this is the last trump card it has in any negotiation with the west, or the east. It is this trump card that went into play moments ago when Ukraine’s Prime Minister who recently resigned and whose resignation was not accepted, said that Ukraine is considering banning the transit of all Russian “energy resources”, i.e. European gas.

More:

Ukraine ready to impose sanctions against any transit via its territory, including air flights and gas supplies to Europe, Prime Minister Arseniy Yatsenyuk said Friday. Ukraine’s Parliament will vote on the sanctions on Tuesday. Kiev has also prepared a list of 172 Russian citizens and 65 companies predominantly Russian to put under sanctions for “sponsoring terrorism, supporting the annexation of Crimea, and violating the territorial integrity of Ukraine,” Yatsenyuk said at a briefing on Friday.

Read moreUkraine Prepares To Impose Russian Gas Transit Ban, Commit Economic Suicide

Hillary Clinton Tells EU To Use MH17 Tragedy To Find Alternatives To Gazprom (Dollar Dumping Gas Giant)

H/t reader squodgy:

“So glad this bitch has arrived on the scene.

Now we know for sure it is all a set up.”

And here are some pics to show the world whose ‘bitch’ she is:

Hillary-Clinton-AIPAC Hillary-Clinton-AIPAC

Hillary-Clinton-CFR Hillary-Clinton-Kissinger

Hillary Rodham Clinton Satanic Handsign Anton Lavey, Founder of the 'Church of Satan'


Hillary Tells EU to Use MH17 Tragedy to Find Alternatives to Gazprom (dollar dumping gas giant) (Activist Post, July 20, 2014):

Ah, now the agenda is starting to make a bit more sense. Hillary Clinton doesn’t want a good crisis to go to waste. She told Charlie Rose that her recommendation to the European Union is to take advantage of the shot-down MH17 tragedy to “Immediately accelerate efforts to find alternatives to Gazprom.”

Moscow-based Gazprom is the largest producer of natural gas in the world and one of the globe’s largest companies. A few weeks back on June 26th they announced that they would settle contracts with China using yuan or rubles instead of dollars. This move came about one month after Russia and China announced a record $400B gas deal. That’s a whole lot of dollars that won’t be needed in the international economy.Couple that with the launch of the BRICS development bank, and motive for aggressive posturing towards Russia becomes a bit clearer.

Read moreHillary Clinton Tells EU To Use MH17 Tragedy To Find Alternatives To Gazprom (Dollar Dumping Gas Giant)

Russia Rushes To Seal Ukraine-Bypassing Gas Pipeline: Lavrov Pays Bulgaria A Visit

Putin chess

Russia Rushes To Seal Ukraine-Bypassing Gas Pipeline: Lavrov Pays Bulgaria A Visit (ZeroHedge, July 7, 2014):

As we remarked two weeks ago, when observing the recent developments surrounding the suddenly all-important South Stream gas pipeline bypassing Ukraine entirely, and instead traversing the Black Sea before crossing Bulgaria, Serbia, Hungary and terminating in the Austrian central European gas hub of Baumgarten, we said that all of Europe is suddenly focused on if and how Russia will make headway with a project that may be the most important one for not only Europe’s energy future but the impact Russia will continue to have over Germany et al. And of course, Ukraine. Because should Russia find a way to completely bypass Kiev as a traditional transit hub for Russian gas, it would make the country, and its ongoing civil war, completely irrelevant not only for Russia, but worse, for Europe, the IMF, and Ukraine’s staunch western “supporters and allies” as well.

South Stream Map

Showing just how Europe perceives the Russian “South Stream” threat was a comment from a recent NYT article, in which Günther Oettinger, Europe’s top energy official, was quoted as saying that the Ukraine crisis “has slowed down our progress on South Stream considerably… We can’t just give in to the Russians every time.” Alas, since the Russians control the all important gas, Europe has zero choice.

This explains why even as the western media finally remembered over the weekend there was a Ukraine civil war going on following an advance by the Kiev army to retake some rebel strongholds in the Donbas region, with some wondering what if anything Putin would do in retaliation, what Putin, or rather his envoy Sergei Lavrov were actually doing, was completely ignoring the Ukraine situation (where the West has long since conceded the loss of Crimea to the Kremlin) and instead focusing on securing the successful launch of the South Stream (remember: the second South Stream goes online, Ukraine becomes irrelevant). And since Russia already signed another historic agreement with Austria in June, which positioned the AAA-country (with some surprising emerging bank troubles subsequently) squarely against its fellow European peers, it was the turn of the other South Stream countries, namely Bulgaria.

Read moreRussia Rushes To Seal Ukraine-Bypassing Gas Pipeline: Lavrov Pays Bulgaria A Visit

And In Retaliation For Outright EU Stupidity … Russia Reveals ‘Plan B’: Gazprom Says Gas Transit Via Ukraine May Be Stopped Completely

Before:

EU Gives Russia Three Days to De-Escalate Ukraine Crisis, Threatens Sanctions

Again, it’s Ukraine vs East Ukraine, but Russia is now told to solve the problem the U.S. and the EU have created in the first place???

Reader Marilyn commented:

“The EU receives E120 billion a year from Russia. Any threats are hot air, nothing more. They better shut up before they start sounding like the mendacious cries of the US.”

Reader squodgy commented:

“This is blatant intimidation.

Vlad has used International Law to prove his stance in the past.

Western MSM presstitutes ignore the other’s argument.

His only option is to fight fire with fire & cut off the gas completely.”

And as predicted here comes Putin’s retaliation.

And this, unlike the EU’s empty intimidation talk, IS a real threat.

The EU seems to feel an urgency to go back to the Neolithic Age. (And I am not joking!!!)

And that is what the EU will get if it is not stopping to act like the US puppet that it is.

If  the gas transit will be stopped completely, then prepare for energy prices (and food prices) to skyrocket.


Putin chess

Russia Reveals “Plan B”: Gazprom Says Gas Transit Via Ukraine May Be Stopped Completely (ZeroHedge, June 30, 2014):

A few days ago, when we wrote our “explainer” on the need for Russia to have an alternative pathway for its gas, one which bypasses Ukraine entirely and as the current “South Stream” framework is set up, crosses the Black Sea and enters Bulgaria before passing Serbia and Hungary on the way to the Central European energy hub located in Baumgarten, Austria, we said that “one short month after Putin concluded the Holy Grail deal with Beijing, he not only managed to formalize his conquest of Europe’s energy needs with yet another pipeline, one which completely bypasses Ukraine (for numerous reasons but mostly one: call it a Plan B), but scored a massive political victory by creating a fissure in the heart of the Eurozone, after Austria openly defied its European peers and sided with Putin.”

Major_russian_gas_pipelines_to_europe

Today we find just what said Plan B is.

As Itar-Tass reports, citing Gazprom CEO Alexei Miller, “Russia’s gas giant Gazprom does not rule out gas transit via Ukraine may be stopped completely.”

Read moreAnd In Retaliation For Outright EU Stupidity … Russia Reveals ‘Plan B’: Gazprom Says Gas Transit Via Ukraine May Be Stopped Completely

Austria Signs Russian Pipeline Deal, Hosts Rare Putin Visit

Austria signs Russian pipeline deal, hosts rare Putin visit (Reuters, June 24, 2014):

VIENNA, June 24 (Reuters) – Austria gave its final approval to a controversial Russian gas pipeline project on Tuesday, defying EU officials and welcoming Russian President Vladimir Putin to the neutral country that has been a long-standing energy customer for Moscow.

The chief executives of Russia’s Gazprom and Austria’s OMV sealed the deal to build a branch of the South Stream gas pipeline to Austria, a staunch defender of the project in the face of opposition from the European Commission.

South Stream, which will cost an estimated $40 billion, is designed to carry Russian gas to the centre of Europe, a continent already dependent on Russia for a third of its gas needs, on a route that bypasses current transit country Ukraine.

Read moreAustria Signs Russian Pipeline Deal, Hosts Rare Putin Visit

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles (ZeroHedge, June 26, 2014):

A little over a month ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom’s CFO Andrey Kruglov uttered the magic words (via Bloomberg):

  • GAZPROM READY TO SETTLE CHINA CONTRACTS IN YUAN OR RUBLES: CFO

In other words just as the US may or may not be preparing to export crude – a step which would weaken the dollar’s reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies – the world’s two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback.

Read moreGazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

Russia Says Ukraine Took Gas Despite Cutoff; Sends More Tanks/Troops To Border

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Russia Says Ukraine Took Gas Despite Cutoff; Sends More Tanks/Troops To Border (ZeroHedge, June 23, 2014):

The deadline passed on June 16th for Ukraine’s payment for gas already provided and upfront ‘pre-payments’ for ongoing deliveries. So what the Russian Energy Minister wants to know is how Ukraine took 3.8mcm on June 19th, 4.5mcm on June 20th, and 1mcm on June 21st. It appears Ukraine is claiming the gas supplies are reverse flow from Europe but this has not stopped Russia as The Pentagon reports more Russian troops at the Ukraine border and that they are preparing to send more tanks.

Since the cutoff on June 16th, Ukraine has ‘taken’:

  • 3.8mcm on June 19
  • 4.5mcm June 20
  • 1mcm on June 21

According to Russia’s energy minister.

As it appears Russia sends gas to Europe (via Ukraine) and Ukraine holds on to it – claiming it is “reverse flow.”

Ukraine remains open…(of course)

Read moreRussia Says Ukraine Took Gas Despite Cutoff; Sends More Tanks/Troops To Border