Russia on the Offensive! Gazprom Terminates Gas Contracts with Ukraine and Patriarch Kirill Reminds Bulgaria Who Liberated It
Russia on the Offensive! Gazprom Terminates Gas Contracts with Ukraine and Patriarch Kirill Reminds Bulgaria who Liberated It
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This has been in the wind for a week. I’ve been following this since day one. It is all the talk in Ukraine, blaming, as usual, everyone but themselves.
It started at the end of last year, when the Stockholm arbitrage took a normal for the West double-standard position and let Ukraine off leniently after Ukraine’s non-payment of debts to Gazprom for years. The arbitrage cited the ‘worsening of economic conditions in Ukraine’ as the reason for its biased decision, effectively telling Russia to pick up billions of euros worth bill for Ukraine.
Last week Stockholm issued a new decision this time on Ukraine gas transit to the EU, and according to the new, politically motivated decision on Russian gas transit through Ukraine, Gazprom now owes Ukraine $2.5 bln.
This is happening with the background of Ukraine recently passing the second law (first was passed in 2015) declaring Russia an aggressor, with a chorus of Western countries supporting Ukraine, or being conspicuously silent.
As part of the Stockholm decision, Ukraine is still obligated to buy a minimum amount of gas from Russia, in exchange for pre-payment. If you remember, since the Kiev junta supported by the West took over Ukraine in 2014, it denied buying gas from Russia, saying that the only gas purchased by Ukraine was from the EU. This was done for ideological reasons and in line with the plan for Ukraine to be artificially torn from Russia, in order to create anti-Russia on Russian borders.
In reality it was reverse transit gas from Russia purchased by Ukraine from Slovakia at inflated prices.
Suddenly, after the Stockholm arbitrage decision mandating Ukraine to continue purchasing minimum amounts of Russian gas, Ukraine flip-flopped and announced that it was ok to buy gas from the ‘aggressor.’ This announcement fueled the present anti-Poroshenko, anti-government protests by Kiev radicals.
Ukraine Naftogas is the state conglomerate responsible for: 1. purchase and distribution of gas to Ukraine’s domestic consumers, including homes, offices and industry; 2. managing domestic and international gas pipes, reservoirs, pumping stations and other gas infrastructure; 3. lucrative gas transit through Ukraine to the EU.
Let me remind everyone that thanks to the USSR investments into Ukraine, it is practically 100% covered by gas infrastructure, including cooking/heating and industrial energy usage throughout.
Past winters have been warm, but as many of you know, a few weeks ago a serious arctic cold front descended on the entire northern hemisphere, including US, Canada, Russia, EU, and of course, Ukraine. In this environment Ukraine suddenly needed much more gas. They were looking at a deficit of 10+ mln cubic tones. And they suddenly remembered Russian gas and sent their pre-payment for March.
A big shock followed when following Stockholm arbitrage’s new decision, last week Gazprom returned Ukraine’s check and announced that it won’t be pumping gas to Ukraine. A veritable storm of indignation by Ukraine and Poroshenko/ukro-nazis followed, who said that Russia had no right to withhold gas to Ukraine. Let’s recall: just recently they were saying they would never buy gas from the Russian ‘aggressor.’
They didn’t know what was to follow yet…
Gazprom followed up by initiating through the court the proceedings to terminate the contract with Ukraine, which, Gazprom has maintained for years, Ukraine forfeited a long time ago. The contract in question includes the supply of gas to Ukraine, but even more significantly, the lucrative contract between Naftogas and Gazprom for the gas transit to Europe.
Gazprom maintains that not only Naftogas has forfeited the contract, but Stockholm arbitrage also took a biased decision and exceeded its jurisdiction. The citing by the Stockholm arbitrage of the ‘worsening economic situation in Ukraine’ as the reason for unfair decision, said the head of Gazprom Alexei Miller, means that the arbitrage wants Gazprom to carry Ukraine’s financial load. We are a business and this is contrary to the interests of our stockholders, noted Miller.
Russia has finally learned to play by their rules, as we see: hit them where it hurts, their wallet, fake capitalism (only when it suits them) and fake democracy with clear double standards.
Miller’s announcement that Russia is terminating gas supply and gas transit contract with Ukraine: Gazprom terminates gas contracts with Ukraine’s Naftogaz.
Good and long overdue move, if I may say so myself, and as always with Putin the Grand Master — completely unexpected. Note that it is happening right before Russian elections. Not that Putin needs those extra points, but he will increase his already fantastic lead!
Europeans are very worried about what will happen to their gas supply, if Ukraine is taken offline. The big problem expected: Ukraine will again begin stealing European gas being pumped through its territory.
It is well-known that Russia intends to terminate gas transit contract with Ukraine as of January 1, 2019, when it expires. But this new move adds fuel to the fire, pun intended.
Just a couple of days ago Putin received the new Federal Chancellor of Austria, who chose to make his first trip outside the EU to Russia. The new Chancellor Sebastian Kurz is only 31 (yet another confirmation of my predictions: recall I told you all about the Period 8 favoring the young men in ESW4: Period 8 Predictions). During the visit Kurz has confirmed that Austria wants better and closer ties with Russia, is against sanctions and also that Austria wants to have a more secure gas supply from Russia, bypassing Ukraine. The extension of Nord Stream 2 is vitally important for Austria. In fact, gas contract and cooperation were the linchpin of Kurz agenda in Moscow. Video (eng subs).
The latest move by Gazprom reinforces the desire of Germany, Hungary and Austria to finish Nord Stream 2 in record time.
Meanwhile, Russian Patriarch Kirill is visiting Bulgaria, and this visit has been highly publicized and eagerly awaited by those Bulgarians, who still remember the truth. During his visit, the Patriarch made a point to emphasize Slavic and Orthodox unity, and he reminded that it wasn’t the EU who resurrected Bulgaria in its hour of need. During his meeting with Bulgarian president he reminded Bulgarians WHO saved them, at a great cost to Russian lives:
Russians, not Poles or Finns, Spilled Their Blood for Bulgaria – Patriarch Kirill Reminds in Sophia – Video, eng subs:
Meanwhile this Saturday in the snowed-in Kiev, Ukraine…
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The negotiations between Russia and Ukraine regarding gas price, mediated by the EU, have failed. Russia set the final deadline for Ukraine’s gas non-payment – this coming Monday. Four other deadlines came and went, while Kiev never expressed any desire to pay even a small portion of its debt. Kiev’s debt to Gazprom is now $4,5 bln. Gazprom said it would accept partial payment of debt as a show of good will. In exchange, it would agree to lower the price of gas to $385 from the market price of $485 – which is what Europe pays. More discounts are possible, should Ukraine continue in good faith. However, Ukraine refused to accept this compromise offer.
Yes, the country is broke, but it just received IMF loan, which Ukraine motivated in part by the desperate need to repay its debt to Russia. So, does it mean Ukraine lied on its IMF application too? Certainly, this is a rhetorical question, as we all know why the IMF loan was really given to Ukraine – basically as a repayment to #Poroshenko, #Yatsenyuk, #Turchinov, #Klitchko and other Western stooges, for maidan, for destroying Ukraine and causing serious trouble for Russia (the more trouble, the more payment = IMF loans). But those naive people in Europe and the US who still think the IMF loan was given to prop up the Ukraine economy, for you this is food for thought!
The failure of the gas negotiations was the absolutely predictable outcome! I had no doubt the negotiations were a farce, and a stalling tactic by Kiev junta and their HQ in Washington. The Ukraine side never intended to reach any agreement with Russia. In the old days this would be called: acting in bad faith. And today, it’s called: fulfilling the boss’s order.
Let’s examine what happened and what it means for the future.
I think it is no secret for anyone who is clear-minded and awake what is really going on in Ukraine. Kiev and most of Ukraine, have been taken over by the forces, which are a combination of the western Ukraine fascists and pro-American stooges that are ready to sell out their own country in exchange for money and power, backed by the US guns. Can’t even say it’s backed by the US money, as the US is actually being quite stingy financially. It appears, US wants better results from the Kiev junta than it was so far able to deliver. Killing a few hundred more people in eastern Ukraine? Destroying even more residential quarters? More phosphorus bombs dropped on own population? But regardless of how much US/EU shell out to Ukraine, all of it will end up in the pockets of Poroshenko, #Kolomoysky and other oligarchs.
It is clear that the EU association agreement Ukraine is ready to sign, will rob the country blind. It is clear that #fracking deals signed by Canada PM #Harper and US reps will damage the prized Ukrainian chernozem soils. Fracking has already began in Ukraine and untold riches from the shale gas extraction have been promised to the Ukrainians the same way they were promised to those in Pennsylvania and Texas, who now have to live with poisoned land and flammable water.
Ukraine also signed a deal with the US and EU to bury nuclear waste on their soil. Ukraine has no necessary expertise nor equipment to do so. But it does have Chernobyl. Out of one Chernobyl, they want to create a hundred Chernobyls by burying nuclear waste without proper precautions. One thing Soviet Union was able to prevent in Chernobyl was ground water contamination. Burying of nuclear waste in Ukraine without proper technology will contaminate the water table. And this water table is connected to Russia, Europe and even parts of the Middle East via the Black Sea. It is clear that the EU and US do not care what becomes of Ukrainian land and people, when it’s turned into nuclear / fracking wasteland. It seems they don’t care even about their own people…
It’s also clear that the present rulers of Ukraine don’t care about their population even a bit. Otherwise, they would not be bombing eastern Ukraine with banned white phosphorus. See my previous article about that.
And then, there is Russian gas…
Because of how the economy was designed during USSR, most pipelines transporting Russian gas to Europe were built through Ukraine. In part, it was so Ukrainian Soviet Socialist Republic’s economy didn’t depend on Russia’s help as much. Gas pipeline provided large employment for locals, and Ukraine also made substantial transit fees. Today, Ukraine still makes transit fees from Russia, while the pipeline was built during Soviet days by Russians and while gas running through it is Russian. By the way, Ukraine recently increased transit fees for Russian gas. This sharing of the wealth, which was a common Soviet ideology, and of which I spoke in one of my previous writings, has really backfired on Russia once the colored revolutionaries #Yushchenko, #Tymoshenko and #Poroshenko came to power in 2004.
Between 2004 and 2010, under Yushchenko and Tymoshenko, Ukraine refused to pay for gas on several occasions, while using Russian gas for free for months at a time. As a result, on two occasions, Russia shut off gas to Ukraine. In response, Ukraine started stealing gas designated for Europe. The theft was so substantial that Gazprom started suffering serious losses. At that point, Russia had no choice but to stop the flow of gas to Europe, which created a stellar opportunity for the West to vilify Russia. Let me say it again: when Russia complained to the EU that Ukraine was stealing gas flowing to Europe, Europe said, “it’s your problem, and has nothing to do with us.” When Russia had to stop gas flow in oreder to contain business losses, EU said, “bad Russia, you are blackmailing us and poor Ukraine with your gas.”
The Western MSM and politicians are pounding into everyone’s heads that Russia uses its gas as a geopolitical weapon. As if getting paid for her goods and services is something Russia has no right to.
These instances also created an amazing opportunity to brainwash the citizens of Ukraine. And US, EU, Western #NGOs, and #Soros pounced. Ukraine authorities, along with Western sponsored and financed NGOs, were yelling day and night that Russia wants to strangle Ukraine by shutting off gas and letting people freeze to death in the middle of a winter – therefore, Russia is Ukraine’s enemy. I have no excuses for those in Ukraine who let themselves be brainwashed with this lie. This kind of brainwashing was only possible for those who wanted to be brainwashed or for those who sold out.
What was clear to me in 1995, 2004, 2007, 2010 and today is this: There never was an independent Ukraine. Moreover, there never was an honest government in Ukraine that cared for the well-being of its people. Back in 2007 and 2010, Yushchenko, Tymoshenko, Poroshenko were acting on orders from their bosses in Washington.
Fast-forward to today! Note Kiev’s incongruously stuck-up and unbending position in gas price negotiation with Russia. This is yet another demonstration of the same. Kiev owes Russia $4.5bln for unpaid gas, which Russia has been supplying for free since last year; Ukraine is facing the gas supply shut-down, which Russia warned about for months. Yet Kiev is dictating to Russia what price they want to pay for Russian gas and on which conditions they will, or won’t, start paying?
Russia is asking for a partial repayment so the gas keeps flowing. Otherwise, Ukraine will be put on strict prepayment schedule, meaning that Ukraine will only receive gas they already paid for – which at this point is none. Ukraine says, no, this won’t work for us – give us the discount Belarus is getting (the country which is part of Customs Union, therefore entitled to the insider price), and then MAYBE we’ll repay you part of our debt. Even Europeans seem to be shocked at this audacity.
The only possible reason Yatsenyuk, Poroshenko, and Co. would be so arrogant and audacious is because they have received direct assurances from the US that it will be behind them 100%. The infamous #neocon Victoria #Nuland just visited Kiev. She didn’t bring any burgers and cookies for maidan this time, but she brought something else – direct orders.
The goals of Nuland’s visit were as follows:
1. To give orders to use phosphorus bombs in eastern Ukraine. Read Lada Ray’s Warning: Phosphorus Bombing of Slavyansk and Ukraine APCs Breach Russian Border
2. To give the green light to the Russian border provocation via Ukraine APCs. See the same article. Also read related: Ukraine Part 6. Striking Geopolitical Similarities: Georgian War – Beijing2008 and Ukraine – Sochi2014. and Predictions page.
3. To sabotage gas price negotiations at any cost, which in the end will hurt both Russia and EU! Watch report: Gazprom sets last gas payment deadline for Ukraine.
Ukraine PM #Yatsenyuk gave order to all his underlings to prepare for the gas shut-off on Monday – the last deadline given by Russia for past due payment (4 deadlines have already gone by). Yatsenyuk and Poroshenko would rather have the entire country be without gas than agree on something reasonable with Russia.
Here is why.
1. They received a direct order from the Washington HQ to destabilize Russia and Europe, and to drive a wedge between them.
2. They desperately need to paint Russia as a villain who turned off the gas to the poor Ukrainian citizens, so later they can say that Russia is to blame for the economic collapse of the Ukraine. In reality, the collapse has been underway for the past 23 years. When Ukraine became “independent,” its economy was grossly mismanaged. The majority of assets were routinely siphoned off by oligarchs. That includes Poroshenko, #Yanukovich, Kolomoysky, Tymoshenko, #Avakov, #Akmetov, among others. Per reports, the newly elected president of Ukraine Poroshenko’s wealth just a year prior was estimated at $600mln. After the 2014 Kiev maidan and Yanukovich’s ousting (who was yet another oligarch and mafia boss), Poroshenko’s wealth all of sudden jumped to $1.3bln. It is understood that he, along with his cronies, such as Kolomoysky (the original mafia boss), Avakov, and others have taken over the assets of the “Yanukovich family.” In addition, part of the $5bln that Victoria Nuland so loves to brag about that the US spent on “subverting Ukraine” has ended up in the oligarchs’ pockets. There were payments in addition to that: some alternative media sources have talked about multi-million payments by the West to the Ukraine stooges after maidan. You can google this info, or find it on YT.
Predictions: #Russia, #Gazprom #gaswar, #US motivations in #Ukraine
I discussed in my previous articles that within several years, Russia will deliver most gas it sells to Europe bypassing Ukraine. It will also deliver the majority of its gas to #China, thus taking away the blackmailing leverage from Ukraine.
USA is 100% aligned with the Kiev government (who are on their payroll anyway): anything to paint Russia as the villain will do. And of course no one either in Ukraine or US cares how all these attempts to weaken and vilify Russia will impact Ukraine’s ordinary citizens – and the impact will be catastrophic! Kiev junta doesn’t care about that, as long as they get to blame Russia, thus shifting the blame and people’s wrath away from themselves when Ukraine economy collapses totally and completely – and this will happen soon. With their crazy actions, Kiev is expediting the country’s downfall.
I explained all this further in PREDICTIONS, where I also said that Ukraine will eventually turn away from the West, and will want to join the Eurasian Union. But unfortunately it will only happen AFTER Ukraine economy is completely ruined. Russia will have to pick up the pieces and the tab to re-build Ukraine’s economy.
The main USA’s goal in Ukraine is to turn it into an area of permanent instability on Russian borders. Ruining of Ukraine is part of the plan. It is possible that those who masterminded this whole mayhem in Washington and #CIA may even realize that they won’t be able to hold on to Ukraine for long. Ukraine, like an over-stretched rubber band, will snap back to a better equilibrium with Russia. Another way of saying this is: the Ukraine pendulum has swung too far in the direction of deception, lies and the West; it is bound to swing back to Russia within 2-4 years. But when it does, Washington wants it to end up in as bad of a condition as possible. Hence fracking, nuclear waste disposal, gas deal sabotage, and bombings of eastern Ukraine.
Further, USA is desperate to hurt not only Russia’s and #Putin’s reputation and prestige, but also Russian economy! This is extremely important to understand. They are simply dying to derail Russian economy. This is not new and the playbook has not changed for years. I talked about how it was done during the early years of the USSR in: The Real Truth About USSR: Golodomor and Collectivization in Ukraine.
Although many in the West still have blinders when the words USSR, collectivization, Stalin, etc., are mentioned, I do recommend you read this article, as well as the comment section, with an open mind. It may seriously enrich your understanding of what really went on in the 20th century. I have added my own family history and recollections, which shed additional light on many things. I think this is perhaps the most valuable part of the article from which a lot can be learned. My job is to offer the truth – the rest is up to you!
Last, but not least, USA’s big goal is to weaken its competitor, the EU, and to drive a deep wedge of distrust between Russia and EU.
Look at the chain of events that already happened twice before, and which are about to happen again! Ukraine doesn’t pay for gas. Russia has no choice but to switch to pre-payment schedule, and doesn’t supply gas Ukraine hasn’t paid for. Ukraine starts stealing EU transit gas. EU doesn’t get enough gas to keep its large, gas dependent economy running. At some point Russia has no choice than to shut-down gas to Europe to minimize losses and keep Ukraine from stealing European gas. EU crisis deepens as large companies start suffering losses, as plants stop and as individual consumers can’t cook or heat their houses, which is especially worrisome in winter. Western MSM and politicians, as well as Kiev, start yelling that Russia is blackmailing Europe, using its gas as a weapon, therefore Russia and Putin are villains. Next, the kind fracking companies from USA and Canada offer fracking contracts to EU to save them from bad Russia. Read: Why Is Canada’s PM Harper in a Rush to Visit Ukraine?
Mission accomplished: people brainwashed and confused, EU/Ukraine/Russian economies sabotaged, Russia vilified, Putin hated, Ukraine and EU fracked into oblivion, US/Canada make billions, US empire collapse postponed.
A time-tested divide-and-conquer strategy of the US empire – the legal heir to the British empire!
Video version: Gas Wars: Why Is Ukraine Refusing to Pay for Russian Gas?
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