On Tuesday Russia cut off all natural gas to Ukraine, creating shortages in Europe that could spread across the continent as a cold snap grips the region, Bloomberg News reported.
Gas shortages were reported in Ukraine, the Balkans, Bulgaria, Poland, Italy, and Hungary.
The shortages were expected to extend to Germany, Austria and broader Europe, as a cold snap with temperatures below 20 F degrees is expected to increase demand for fuel in Eastern and Central Europe, The New York Times reported Tuesday. When the natural gas is flowing, Europe imports about 20% of its natural gas from Russia.
The current Russia natural gas cut-off has already lasted longer than the last Russian cut-off, in January 2006.
It's about price . . . and politics
The dispute pertains largely to price, but also involves geopolitics. Russia's oil and natural gas giant Gazprom is seeking to raise the price of natural gas to $450 per 1,000 cubic meters from $179.50 last year, and to collect fines for alleged late payments. The Times reported. However, analysts also believe Russia is upset with Ukraine's move to apply for North Atlantic Treaty Organization membership and the nation's closer ties with the United States and Europe. Ukraine is seeking to integrate more fully with the West, but Russia views Ukraine as part of its sphere of influence.
Gas shortages were reported in Ukraine, the Balkans, Bulgaria, Poland, Italy, and Hungary.
The shortages were expected to extend to Germany, Austria and broader Europe, as a cold snap with temperatures below 20 F degrees is expected to increase demand for fuel in Eastern and Central Europe, The New York Times reported Tuesday. When the natural gas is flowing, Europe imports about 20% of its natural gas from Russia.
The current Russia natural gas cut-off has already lasted longer than the last Russian cut-off, in January 2006.
It's about price . . . and politics
The dispute pertains largely to price, but also involves geopolitics. Russia's oil and natural gas giant Gazprom is seeking to raise the price of natural gas to $450 per 1,000 cubic meters from $179.50 last year, and to collect fines for alleged late payments. The Times reported. However, analysts also believe Russia is upset with Ukraine's move to apply for North Atlantic Treaty Organization membership and the nation's closer ties with the United States and Europe. Ukraine is seeking to integrate more fully with the West, but Russia views Ukraine as part of its sphere of influence.
What a difference a year makes. Indeed, Russian oil giant Gazprom has seen its fortunes free fall in 2008. The company, which was once on the verge of becoming the largest company in the world, is now looking for the Russian government to .gif){kind=logo}
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