No tickey, no heatey

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machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
No tickey, no heatey

In a replay of what happened three years ago, western Europe's gas supply may be shut down in the dead of winter.

Dec. 26 (Bloomberg) -- OAO Gazprom, Russia’s gas-export
monopoly, said “extremely unconstructive” talks with Ukraine
over a debt dispute may trigger to the second cutoff of fuel
shipments to the former Soviet state in three years.

“In such a situation there will be no legal grounds” to
deliver gas to Ukraine as of Jan. 1, Gazprom Chief Executive
Officer Alexei Miller said in a letter to European customers. A
copy of the letter was e-mailed to reporters today.

Gazprom, which supplies one-fourth of Europe’s gas, mainly
through Ukraine’s pipeline system, refuses to sign a new
delivery contract until Ukraine pays off a debt of $2.1 billion.
The Moscow-based company curtailed deliveries to the country in
January 2006 on a price dispute. That led to natural-gas
shortfalls throughout Europe and called into question Russia’s
reliability as an energy supplier.

“To prevent hardship to vulnerable populations at a time
of economic stress, it is important that the parties to this
dispute devote the time and effort necessary to resolving it,”
U.S. State Department spokeswoman Joanne Moore said. “The
predictable flow of energy to Ukraine and the rest of Europe
under market-based, transparent conditions is essential for
stability and reliability in regional and global markets.”

Russian President Dmitry Medvedev threatened Dec. 24 to
sanction Ukraine if the debt isn’t paid “to the last ruble” by
next week.

http://bloomberg.com/apps/news?pid=20601087&sid=aG_duD2jJ5XM&refer=home

As we Americanos complacently turn up the thermostat and contemplate
Europe's grim winter from our cozy recliners, it's worth
considering our own shaky position.

The U.S. is essentially a cargo-cult economy. We expect a parade of
giant oil tankers to keep showing up on the horizon. We hand them
trinkets -- brightly-colored bits of paper -- and they give us valuable
black gold. COOL!

But should the dollar devalue -- should foreigners stop sending us
capital on a daily basis to fund our current account deficit -- that
parade of ships will go poof. And no amount of building bonfires down
at the wharves, dancing and praying will bring them back. For a change,
we may actually have to give something of value in return. YIKES! Life is so unfair.

 

jrf29's picture
jrf29
Status: Gold Member (Offline)
Joined: Apr 18 2008
Posts: 453
Re: No tickey, no heatey
machinehead wrote:

YIKES! Life is so unfair.

Isn't it, though?

Hanover_Fist's picture
Hanover_Fist
Status: Member (Offline)
Joined: Dec 26 2008
Posts: 10
Re: No tickey, no heatey
machinehead wrote:

 

As we Americanos complacently turn up the thermostat and contemplate Europe's grim winter from our cozy recliners, it's worth considering our own shaky position.

The U.S. is essentially a cargo-cult economy. We expect a parade of giant oil tankers to keep showing up on the horizon. We hand them trinkets -- brightly-colored bits of paper -- and they give us valuable black gold. COOL!

But should the dollar devalue -- should foreigners stop sending us capital on a daily basis to fund our current account deficit -- that parade of ships will go poof. And no amount of building bonfires down at the wharves, dancing and praying will bring them back...

 

Frightening specter.  Thousands or millions would die this winter in the US.

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: No tickey, no heatey

Moscow, we have a problem --

SUDZHA GAS METERING STATION, RUSSIA (Jan. 11)—
Teams of EU monitors deployed today at natural gas transit sites along
Ukraine's vast pipeline network, but still no gas flowed to a freezing
Europe.

Russia refused to restart gas supplies that have been stalled
since Wednesday, saying the deal for the monitors was made void by
Ukraine, which signed the document but then issued what it called a
"declaration" to accompany it.

The European Commission insisted the declaration could not change the
agreement, but Russian President Dmitry Medvedev said the document was
void unless Ukraine withdrew the declaration. He denounced the
Ukrainian move as a "mockery of a common sense and a violation of
previously reached agreements."

Ukrainian officials said it would take three days for gas to reach Europe if Russia decides to resume supplies.

http://www.denverpost.com/ci_11429841?source=rss

We have a name for post-contract 'declarations' here in the United States -- 'presidential signing statements.' Yell

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