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Russia on the Offensive! Gazprom Terminates Gas Contracts with Ukraine and Patriarch Kirill Reminds Bulgaria Who Liberated It

GREAT BALANCER WEEKLY

Russia on the Offensive! Gazprom Terminates Gas Contracts with Ukraine and Patriarch Kirill Reminds Bulgaria who Liberated It

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Gazprom

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 2

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.

Putin Agrees With New Austrian Leader Kurz: Nord Stream 2 Is Purely Economic Project, Not Political

Gazprom current Russia gas pipelines

Nordstream

 

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:

Bulgaria: Russia’s Patriarch Kirill gives sermon in Sofia cathedral

Meanwhile this Saturday in the snowed-in Kiev, Ukraine…

 

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