Gas War, 2009
Selected Articles 

The following are articles detailing the events, accusations, and reactions reported on as they appeared in English-language media. For more obzori (news reviews) on other issues, see the newsletter for this corresponding month.

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End?
It's over - for now

Ukraine looks to change gas deal
Yushchenko called the accord a "defeat," citing steep price increases in the first quarter with no rise in transit fees for Ukraine to offset them.

Yuskchenko Promises to Cooperate
The European Union said Tuesday that Ukraine's president has promised he will not reopen a 2009 energy deal with Moscow that restarted natural gas service to EU countries last week.

Ukraine prime minister claims victory in gas row with Russia as economy braces for pain
Ukraine's prime minister has proclaimed her country the winner in a gas dispute with Russia even though higher gas prices are going to badly hurt the Ukrainian economy.

Germany, EU Receive Gas After Gazprom Turns on Taps
Germany, Europe’s biggest energy market, was among European Union states to report full deliveries of Russian natural-gas via Ukraine after exporter OAO Gazprom resumed shipments yesterday.

Russia and Ukraine sign 10-year gas supply deal
Russia and Ukraine signed a 10-year gas supply deal Monday to clear the way for a prompt resumption of supplies to a freezing Europe, cut off for nearly two weeks by a dispute between the ex-Soviet states.

Ukraine Naftogaz to import less gas after price deal
Ukraine's Naftogaz will sharply reduce gas imports from Russia in the first quarter, a senior official said on Wednesday, which should soften the blow on the company's ailing finances as it faces steep price increases.

Gas row cost Gazprom $2 billion
“We have the right to demand full compensation from Ukraine, because we’ve lost over $US 2 billion in the first weeks of January”, Aleksandr Medvedev said.

Ruble Devalued to Six-Year Low as Gas Dispute Deters Investors
The ruble fell to lowest in six years against the dollar after the central bank devalued the currency for the third time in four days.

Russia's Gas War Gets Credit-Crunched
Gazprom has economic incentives to do a deal with Ukraine. The economic realities that Gazprom and the Kremlin face will push them during 2009 to sort out the company's rights to transport gas over Ukrainian territory.

Events and Accusations

How the Gas War was Reported to Russians
SRAS provides here a breakdown of some of the major reports that appeared on Russian television news in December and January.

The Freezing Point Of Gas
Gazprom to start yet another New Year negotiating with Ukraine.

Putin Orders Reduction in Gas Sent to Europe Through Ukraine
Russia said that it is sharply reducing the amount of natural gas it ships to Europe through Ukraine, deepening its fuel embargo of the former Soviet republic as supply disruptions spread to other countries.

Gazprom blames Ukraine for blocking exports
Gazprom on Tuesday accused Ukraine of shutting Russian gas export pipelines, preventing it from boosting winter fuel supplies to Europe to make up for a shortfall following its row with Kiev.

Ukraine sets gas offer but wants no middleman
Ukraine will insist on a price of $201 per 1,000 cubic meters of Russian gas for 2009, less than half Russia's proposal, and wants to scrap a controversial gas intermediary.

Ukraine has stolen 86 mln cu m of gas in 2009 – Gazprom
Since the beginning of year, just from Gazprom Ukraine has stolen more than 86 million cubic meters of gas.

Naftogaz says ready to guarantee Russian gas transit to Europe in full
The current situation and existing misunderstandings emerged as a result of economic issues rather than political difficulties. They should be resolved with account for the sides' economic interests.

Gas for Europe Is Contingent On Monitoring, Putin Says
What they are fighting for today is not the gas price, but a chance to keep their middlemen, in order to use the dividends obtained for personal ends and personal enrichment.

Russia Prepares to Resume Gas Shipments to Europe
Prime Minister Mirek Toplanek of the Czech Republic, which holds the rotating E.U. presidency, was headed for Ukraine to conclude the monitoring agreement and make sure the observers are deployed immediately . . . so that gas supplies can be restored as soon as possible.

Ukraine Says Technically Unable To Cut Off Russian Gas
Ukraine has no technical capabilities to halt the receipt of Russian gas flowing to Ukraine, according to Ukraine's presidential energy security envoy Bohdan Sokolovsky.

Gazprom Still Can't Transport Gas To Europe Due To Ukraine's Actions
Gazprom still cannot transport gas to Europe due to actions taken by Ukraine, Gazprom official Alexander Medvedev told reporters.

Russia, EU Agree on Monitors for Ukraine Transit Gas
Russia and Ukraine still have to resolve their dispute over gas prices, fees and debt that's hit supplies to at least 20 nations. It's high time the EU gets serious about gas security and presses ahead with the creation of a single gas market.

EU Says Gas-Monitoring Deal Signed, Flows to Resume Tomorrow
Russia and Ukraine signed a natural- gas monitoring deal to allow supplies of the fuel to resume to the European Union later today after a six-day halt.

Kiev signs gas transit deal, drops earlier conditions-Gazprom
Ukraine signed the regulations for the monitoring of natural gas transits via Ukraine without any conditions.

Ukraine Refuses to Open Pipeline, Halting Start of Gas Flows to Europe
The collapse of the deal, brokered the day before by the EU, risked further undermining Russia's credentials as a reliable energy supplier and may encourage the 27-nation bloc to turn rhetoric into action on its need to find alternate energy supplies.

Russia, Ukraine trade blame as Europe sees no gas
EU officials criticized both nations for their intransigence and eastern European nations scrambled for a sixth day to find heat.

Russia accused of playing 'trick' as gas turned off again
Russia has "done everything it can to damage the Ukraine's credibility as a transit country".

Worried EU states to fly to Moscow over gas row
Russia and Ukraine faced another day of sparring over gas supplies on Wednesday and two European Union states launched fresh diplomacy to end a dispute that is weighing heavily on their economies.

Primary Docs

Telephone Call From Medvedev to Yushchenko
Russian President noted the need to take every measure to ensure that the international observers begin their work at the monitoring sites as soon as possible.

Prime Minister Vladimir Putin meets with Gazprom CEO Alexei Miller
We are supplying the amount ordered by our foreign clients to the Russian-Ukrainian border-minus what Ukraine has stolen in its territory.

Updates on Gas Dispute with Ukraine
Today at 2.00 Moscow time Gazprom sent another request to the Naftogaz Ukrainy United Dispatching Center (ODU) for the transit of 99.2 million cubic meters of gas a day starting from 10.00 via the Sudja gas metering station. The Ukrainian answer was again negative.

Gazprom's Position on Ukraine Gas Dispute
Naftogaz Ukrainy has not fulfilled the primary provisions of the memorandum, namely paying its debt to the Russian-Ukrainian company RosUkrEnergo, which holds the contract to trade gas in 2008.

Russian Prime Minister Vladimir Putin met with foreign media
Realizing that such situations may arise in the future Russia has long set the task of diversifying supplies of our energy. To this end we launched the plan to build the North-Western pipeline system under the Baltic Sea and another system under the Black Sea (we tentatively call it the Southern Stream).

Russia's Objectives In The Gas War: Explanations From Vladimir Putin
Premier Vladimir Putin advised Europe to tell Kiev to behave in civilized manner and to stop dallying with construction of new gas pipelines.

Russian Prime Minister Vladimir Putin’s interview with German Television’s Channel One ARD
Vladimir Putin: He who has brains has power. You can have anything, but yet be unable to make good use of it.

Opening Address at Conference on Ensuring Gas Supplies to Europe
First of all, I would like to welcome all of you to Moscow and to thank you for having come here to talk about a very important and topical issue. The events that pushed us to meet are rather complex and, I would even say, extraordinary and our meeting was therefore urgently required.

Press Conference Following Conference on Ensuring Russian Gas Supplies to Europe
I would like to say a few words about the meeting that just took place, a meeting in which countries that are consumers of Russian gas participated along with  transit countries, a meeting which was devoted to the deliveries of Russian gas to Europe. I think this meeting was very useful.

Vladimir Putin and German Chancellor Angela Merkel
I am very glad to see Mr Putin. This is his first time in Berlin as Prime Minister. We have exchanged opinions on the general economic situation-in particular, on the impact of the global financial crisis on our countries, Russia and Germany. We have surely discussed natural gas supplies to Western Europe.

Vladimir Putin had a meeting with the chief editors of leading German media outlets
Vladimir Putin: In general, I am an optimist. And if you ask me about the perspective I see that at the end of the day we will all need to come to an agreement. If the President of the Russian Federation, Dmitry Medvedev, invites our partners to come to Moscow he is doing so in order to enable us to search for a solution, to act in an absolutely open and transparent way as partners.

Theories
The Gas War cost billions - why was it fought?

Russia-Ukraine Price Dispute Driven by Political Hydra
The current dispute between Russia and Ukraine over 2009 gas prices marks the fourth time since the Orange Revolution that Moscow and Kiev have tried to sign a contract. Each time, the process has been trumped by a hydra of hidden agendas and political intrigues, with far-reaching implications for consumers.

Money at root of Russia's gas war
In its current fight, at least, the Kremlin seems more interested in raising Ukraine natural gas prices to market levels than in restoring its influence in nations along its borders.

A capitalist revolution
Gazprom's executives are ruthless politician-businessmen of the sort Britain once produced.

The battle of the oligarchs behind the gas dispute
It is no coincidence that Yulia Tymoshenko, the prime minister, made her fortune in gas trading in the 1990s and that Viktor Yanukovich, the pro-Russia opposition leader, represents some of the largest heavy industrial gas buyers in eastern Ukraine.

Russia Seeks Control of Ukraine’s Gas Transit System Through a Consortium
Russia and some circles in Germany are reactivating the idea of a consortium to control Ukraine’s gas transit system. Moscow hopes to profit from the crisis atmosphere it has itself created since January 1 by stopping gas supplies to Europe via Ukraine.

The Business and Politics Behind the Russia-Ukraine Gas Dispute
Jeffrey Mankoff, an expert on Russia, says the dispute that led Russia to cut off natural gas to Ukraine and other European states has its origins in differences over pricing as well as Ukraine's interest in closer ties with the West, including membership in the North Atlantic Treaty Organization (NATO).

Europe

Russian Fuel Cuts Felt Across Europe
Putin Blames Ukraine for Standoff Affecting More Than a Dozen Nations

18 countries affected by Russia-Ukraine gas row
Russia and the European Union signed an agreement on Saturday aimed at restoring Russian gas supplies via Ukraine, whose cut-off has plunged much of Europe into a midwinter energy crisis.

Crisis chills Europe's ties to Russia
With parts of Eastern Europe now going without heat because of the lingering natural gas conflict between Russia and Ukraine, officials in Europe say they must do more to prevent Russia from having so much control over the continent's thermostat.

Gas row risks long-term damage to Russia's reputation
Disruption of Russian gas supply to Europe seems certain to accelerate the EU'S pursuit of alternative suppliers and could further weaken Moscow's position on a market vital to its political and economic future.

Europe gas crisis boosts Schroeder pipeline plan
The current situation only makes even more relevant our main task, our plans for the construction of a gas pipeline system along the bottom of the Baltic Sea.

EU now has chance to curb gas corruption
We have to work together in Europe to try to force Russia and Ukraine to adopt a level of transparency.

Gas-starved EU nations seek end to energy crisis
The crisis has deepened European concerns about Russia's willingness to use its energy riches as a political tool and raised questions about the reliability of Ukraine, whose pro-Western leaders want to join the EU but are mired in dangerous disputes with Russia.

Europe faces more dependency on Russian gas – study
Europe must look hard for alternatives to Russian gas as growing demand deepens its dependency on outside suppliers.

Europeans 'afraid of tomorrow'
BBC news website readers in Central and Eastern Europe continue to suffer shortages and have little faith in the future.

America

Putin's latest power play, and a lesson for Barack Obama
Russia's strongman is wielding the energy club to undermine the pro-Western government in Kiev and scare the European Union into submission.

Gas Cut by Kremlin Highlights U.S. Concern Over Russian Intentions
The United States has been "trying to get Europe to focus on this for a long time — that dependency is something they should not be comfortable with, especially if it is dependency on Russia, which is willing to use its energy as a political tool.

Russia Accuses Ukraine Of Stealing Gas And Taking Orders From Washington
Gazprom's explanation for the failure of Russian gas to reach Europe is that the amount of gas Ukraine requires for the technical purpose of pumping transit gas has been stolen. For the first time, Russia has accused the Ukrainian government of taking orders from Washington on gas issues.

U.S., Georgia Intend To Build New Southern Route To Diversify Energy Deliveries To Europe
The United States and Georgia intend to boost the physical security of energy transit through Georgia to European markets, according to the U.S.-Georgia Charter on Strategic Partnership signed on January 9 in Washington.

Ukraine
Life on the Ground

Yushchenko May Use Gas War to Push Ukraine Westward
Ukrainian President Viktor Yushchenko may be calculating that his "No" to Russian Prime Minister Vladimir Putin in their dispute over natural gas will make the West more likely to say "Yes" to him.

Kiev confirms plans to involve U.S. in modernizing gas pipelines
The Ukrainian Foreign Ministry confirmed on Thursday Russian media reports that Kiev was planning to involve the United States in modernizing its Soviet-era gas pipeline network.

Ukraine's pro-Western progress set back in gas crisis
Ukraine's chances of quickly building reinforced bonds with the West are dwindling with each day that an exasperated Europe must deal with the Russia-Ukraine gas crisis, analysts say.

Ukraine increases gas output amid crisis with Russian supplier
Ukraine has increased domestic natural gas output in the absence of Russian supplies, the CEO of national energy company Naftogaz said on Friday.

Ukraine capital short on gas, Kievites battle the cold
A fur hat is the way to survive the winter. No one can turn off a fur hat.

Medvedev says no gas to Ukraine until documents signed
Of course we are interested in gas transit resumption as soon as possible. But nevertheless I would like you to be guided by my instruction in solving this task: all these actions could be performed only after the documents are signed.

Ukraine Gas Bill May Be 'Catastrophic,' Capital Economics Says
Ukraine may be forced to bow to Russian demands and pay market prices for natural gas to resolve a standoff, threatening to deepen its recession.

Ukraine opposition seeks to remove govt over gas
Ukraine's opposition parties repeated calls on Tuesday for the government's resignation and a start to impeachment proceedings against the president over a row with Russia that has left the country 13 days without gas supplies.

Old Equipment, Multiple Routes Make Ukraine Gas Transit Difficult To Guarantee
These pipelines are from the Soviet period -- the 1970s, particularly -- so they're over 30 years old. They are in better condition than some of the pipelines in [former] Soviet Central Asia, but still not in perfect condition. Hence, there are some leaks that waste gas.

Swiss-based firm fuels intrigue in Russia gas conflict
In the midst of the Ukraine-Russia gas dispute, the role played by a Swiss-based firm, Rosukrenergo, as an intermediary between Russian gas giant Gazprom and Ukrainian interests, is puzzling observers.

Editorial

Gazprom's Lessons. Europe has failed to learn them
The latest natural-gas spat between Russia and Ukraine reveals at least two things: that Gazprom learns from its mistakes, and that Europe does not. The result is not good for Europe's energy security.

Blame Kiev not Moscow
It seems far more likely that Ukraine is using the only weapon it has available to avoid having to settle its commercial dispute with Gazprom in a less confrontational way.

Ukraine, the Real Crisis on Russia's Doorstep
This energy mess couldn't come at a worse time for Ukraine's economy or the economies of Eastern Europe.

Mr. Putin's Cold War
The Russian leader orders the suspension of gas deliveries to Europe. Is Ukraine really to blame?

Putin, pipe down on Ukraine
If Russia only looked in the mirror, it would find its own policies have exacerbated its woes. By blaming outsiders, it misses an opportunity to strengthen the economy, which must be done.

Lots of hot air, and no gas for Europe
Surely this time around the Europeans and their U.S. allies must realize that dealing with two chronically unreliable and corrupt state monopolies requires serious cooperation and coordination among all European consumers of Russian gas.

Europe's Big Chill
Ukraine is by no means an innocent victim. Its president and prime minister are locked in a fierce power struggle, and its energy industry is mired in shady political and business dealings.

Kremlin's secret weapon
It's something more menacing – part of what looks like a calculated strategy by Russia to regain influence over countries that were once part of the Soviet empire and to neutralize European opposition.

Short End of the Pipeline
Perhaps, as some believe, Putin was trying to distract Russians from their own pending economic and financial meltdown.

The Ukraine-Russia Energy Crisis
The divided and dysfunctional government in Kiev acted in a truly delusional fashion, assuming that it could pursue a hostile policy toward Russia (or at a minimum a policy they knew Russia considered hostile), and still expect to get Russian gas at a heavily subsidized rate.

In Russia, Power Has No Heirs
Why is Putin shutting off Europe's Gas? Ask Ivan the Terrible

In gas fight, Putin long on swagger but short on savvy: analysts
The anything-but-gentle fashion in which the powerful Russian prime minister this week ordered deeper cuts in supplies sent to clients via Ukraine has left Europe stunned by his "hardball" tactics and wary of Moscow's motives.

Gas Spat Earns Praise for Putin at Home
Russian Prime Minister Vladimir Putin's standoff with Ukraine over supplies of natural gas may have angered European Union leaders and denied heat to millions; at home, it's winning him plaudits.

The Misperception of the Russian-Ukrainian Gas Problem
The current faceoff between Russia and the Ukraine is deeply worrying and disruptive to the countries of Europe. They are, to a large degree, dependent on gas supplies from Russia for their heating and lighting. It is a serious matter.

Russia's Gas Disinformation Game
Throughout the Russian-Ukrainian "gas war" of January 2009, Russian Prime Minister Vladimir Putin, a former KGB officer, along with key Gazprom officials, many of whom are suspected of having KGB backgrounds, resorted to disinformation on an unprecedented scale.

Gazprom's Gas Price Shell Game
During the current "gas war" between Ukraine and Gazprom, Gazprom managers and Russian Prime Minister Vladimir Putin have managed to quote four different prices for gas in less than a month ranging from $250 to $450 for 1,000 cubic meters.

Emerges From Gas Wars With Yushchenko Sidelined
Russia's gas agreement with Ukraine will warm up Eastern Europe after 12 freezing days without sufficient heat or power. It may also warm up relations between Prime Minister Vladimir Putin and Ukraine, where the deal elevates Putin's preferred political power broker and weakens his rival.

Lessons from the Russian Gas Dispute
The acrimonious three-week natural gas dispute between Russia and Ukraine, which left millions of customers in Central and Eastern Europe freezing without gas for heating, is now finally over. Under a face-saving compromise finally hammered out on Jan. 20, Russia's Gazprom has achieved its central objective of making Ukraine pay "market prices" for its gas, which will be linked to the European average.

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