Thread: Europe looking at winter without heat Economy hits payments

FROM JOSEPH FARAH'S G2 BULLETIN

Europe looking at winter without heat

Economy hits payments for fuel, disrupts supply

Posted: July 15, 2009
11:40 pm Eastern
© 2009 WorldNetDaily

Editor's Note: The following report is excerpted from Joseph Farah's G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.


Part of the Russian natural gas supply infrastructure

Russia and its neighbor Ukraine are on the verge of another natural gas war, and this time it's prompting European countries to rush to fill gas storage facilities, but they already may be too late to avoid fuel shortages this coming winter, according to a report in Joseph Farah's G2 Bulletin.

The looming crisis stems from Ukraine's continuing inability to pay its bills to Russia in a timely fashion. Ukraine had until July 7 to pay the next installment to Russia's Gazprom. Now, it risks a shutdown of supply, threatening much of Europe, which obtains its supply through Ukraine.

Ukraine has gone to the European Union for a $4 billion loan. Although it may receive only half that amount, the loan may not be granted until the fall when it will be far too late to fill natural gas storage facilities in Europe to meet the demands of the coming winter.

The EU also has placed a number of conditions ot the loan calling for the restructuring of Ukraine's gas monopoly, Naftogaz Ukrainy. The EU wants Naftogaz broken up into separate elements for transport, sales, production and storage.

In addition, the EU wants Ukraine to agree to undertake certain "fiscal corrective measures" and develop a mechanism to monitor Naftogaz finances.

Keep in touch with the most important breaking news stories about critical developments around the globe with Joseph Farah's G2 Bulletin, the premium, online intelligence news source edited and published by the founder of WND.

Ironically, Ukraine's looming natural gas crisis reportedly never was discussed at the June EU summit.

Last January, Russia cut off the flow of natural gas through Ukraine to European countries for two weeks, creating serious disruptions for homes and businesses that could not be heated.

Some 25 percent of all of Europe's natural gas comes from Russia, of which 80 percent flows through Ukraine. Some European countries, however, have a 100 percent reliance on the supply of Russian natural gas flowing through Ukraine.

In all, 27 countries of the EU potentially would be affected by the natural gas shutoff.

The natural gas that Ukraine receives from Russia does not meet all of its domestic supply. Consequently, it generally imports the natural gas during the summer months and stores it until needed during the winter.

This approach is due to the fact that the natural gas pipelines entering Ukraine are not large enough to handle the simultaneous natural gas needs of Ukraine and the EU. Consequently, Russia needs to store the gas in Ukraine to be released to Europe during the winter months. On the other hand, Russia is reluctant to store the gas in Ukraine out of concern that it will be siphoned off.

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