{"id":390789,"date":"2014-06-16T15:35:51","date_gmt":"2014-06-16T12:35:51","guid":{"rendered":"http:\/\/www.moldova.org\/?p=390789"},"modified":"2014-06-16T15:35:51","modified_gmt":"2014-06-16T12:35:51","slug":"as-russia-cuts-off-gas-to-ukraine-moldova-likely-to-become-a-collateral-victim","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/as-russia-cuts-off-gas-to-ukraine-moldova-likely-to-become-a-collateral-victim\/","title":{"rendered":"As Russia cuts off gas to Ukraine, Moldova likely to become a collateral victim"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Russia\u2019s Gazprom has reduced gas supplies to Ukraine after Kiev failed to meet a payment deadline of its $4.5 billion debt. The gas firm said Ukraine would have to pay upfront for its gas supplies in the future. According to Gazprom, Kiev did not submit a payment for June supplies yet.<\/p>\n

The Russian company promises to respect its contractual obligations with the European Union (EU), so that the move will not affect the European consumers. EU gets about 15% of its gas from Russia. Over half of it is being transported through Ukraine.<\/p>\n

After a weekend full of negotiations between Moscow and Kiev and mediated by Brussels, over a new price for gas, the sides could not reach an agreement. Russia asks Ukraine to pay $485.50 per 1,000 cubic meters of gas, which is an increase by almost 80% of the previously-agreed deal. The price negotiated by ousted President Viktor Yanukovich was $268 per 1,000 cubic meters.<\/p>\n

Russian President Vladimir Putin made his last offer of $385 per 1,000 cubic meters. According to EU Energy Commissioner G\u00fcnther H. Oettinger, Ukraine seemed to accept to bid, but Russia rejected it.<\/p>\n

\u201cThe Ukrainian side was ready to accept this proposal, but for the moment the Russian partners were not,\u201d Mr. Oettinger said.<\/p>\n

Ukrainian state energy company Naftogaz said that current storages and own resources will allow the firm to cover consumer gas demand by the end of the summer 2014.<\/p>\n

The last gas delivery disruption took place in 2009, when Ukrainian, Moldovan and European consumers were affected.<\/p>\n

Moldovan energy expert Ion Muntean told Moldova.ORG, should this gas crisis resemble the 2009 one, the negative effects for Moldova will be lower than the previous ones. He argues that demand for gas during summer time is lower than the one in winter time, when lots of gas is consumed for heating.<\/p>\n

\u201cHowever, this situation could affect the activity of enterprises which use gas as their primary energy source in their production,\u201d Ion Muntean, expert at Chisinau-based IDIS \u201cViitorul\u201d think tank said.<\/p>\n

According to him, food production enterprises and construction firms are the most likely to be affected.<\/p>\n

He said it is difficult to assess yet when these effects will be felt by Moldova, given that it is unknown to what level the gas supply was reduced.<\/p>\n

Mr. Muntean said that lacking direct supply for Gazprom, Moldova could meet its demand by connecting to the Ukrainian gas reserves, following the 2009 scenario.<\/p>\n

Moldova is fully dependent on Russian gas. In order to have an alternative energy source, Moldova and Romania agreed to build a pipeline, linking the country to the EU gas resources. The pipeline is expected to be ready by mid-2014 and become functional before winter 2014. However, the new pipeline will be able to cover only one third of Moldova\u2019s annual gas consumption.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>Russia\u2019s Gazprom has reduced gas supplies to Ukraine after Kiev failed to meet a payment deadline of its $4.5 billion debt. The gas firm said Ukraine would have to pay upfront for its gas supplies in the future. According to Gazprom, Kiev did not submit a payment for June supplies yet. The Russian company promises […]<\/p>\n","protected":false},"author":1,"featured_media":266240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-390789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"content_social_share":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

Russia\u2019s Gazprom has reduced gas supplies to Ukraine after Kiev failed to meet a payment deadline of its $4.5 billion debt. The gas firm said Ukraine would have to pay upfront for its gas supplies in the future. According to Gazprom, Kiev did not submit a payment for June supplies yet.<\/p>\n

The Russian company promises to respect its contractual obligations with the European Union (EU), so that the move will not affect the European consumers. EU gets about 15% of its gas from Russia. Over half of it is being transported through Ukraine.<\/p>\n

After a weekend full of negotiations between Moscow and Kiev and mediated by Brussels, over a new price for gas, the sides could not reach an agreement. Russia asks Ukraine to pay $485.50 per 1,000 cubic meters of gas, which is an increase by almost 80% of the previously-agreed deal. The price negotiated by ousted President Viktor Yanukovich was $268 per 1,000 cubic meters.<\/p>\n

Russian President Vladimir Putin made his last offer of $385 per 1,000 cubic meters. According to EU Energy Commissioner G\u00fcnther H. Oettinger, Ukraine seemed to accept to bid, but Russia rejected it.<\/p>\n

\u201cThe Ukrainian side was ready to accept this proposal, but for the moment the Russian partners were not,\u201d Mr. Oettinger said.<\/p>\n

Ukrainian state energy company Naftogaz said that current storages and own resources will allow the firm to cover consumer gas demand by the end of the summer 2014.<\/p>\n

The last gas delivery disruption took place in 2009, when Ukrainian, Moldovan and European consumers were affected.<\/p>\n

Moldovan energy expert Ion Muntean told Moldova.ORG, should this gas crisis resemble the 2009 one, the negative effects for Moldova will be lower than the previous ones. He argues that demand for gas during summer time is lower than the one in winter time, when lots of gas is consumed for heating.<\/p>\n

\u201cHowever, this situation could affect the activity of enterprises which use gas as their primary energy source in their production,\u201d Ion Muntean, expert at Chisinau-based IDIS \u201cViitorul\u201d think tank said.<\/p>\n

According to him, food production enterprises and construction firms are the most likely to be affected.<\/p>\n

He said it is difficult to assess yet when these effects will be felt by Moldova, given that it is unknown to what level the gas supply was reduced.<\/p>\n

Mr. Muntean said that lacking direct supply for Gazprom, Moldova could meet its demand by connecting to the Ukrainian gas reserves, following the 2009 scenario.<\/p>\n

Moldova is fully dependent on Russian gas. In order to have an alternative energy source, Moldova and Romania agreed to build a pipeline, linking the country to the EU gas resources. The pipeline is expected to be ready by mid-2014 and become functional before winter 2014. However, the new pipeline will be able to cover only one third of Moldova\u2019s annual gas consumption.<\/p>\n

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