Fun Facts: Ukraine and Crimea

Consider This

• Russia's 2 primary pipelines run through Ukraine to supply gas to Western Europe 
• That includes Austria, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Germany, Greece, Hungary, Moldovia, Poland, Romania, Slovakia, and Turkey.
• Russia's largest pipeline, the Bratstvo,  crosses Ukraine to Slovakia where it splits in two supplying northern and southern European countries.
• The Soyuz pipeline links Russian pipelines through Ukraine to natural gas networks that supply Central Asia and central and northern Europe.
• A third pipeline runs through Ukraine to deliver Russian natural gas to the Balkan countries and Turkey.

In March, Ukraine owed Russia’s natural gas giant, Gazprom, $2 billion for natural gas. Friday, the New York Times reported that debt had ballooned to $22 billion.

Gazprom’s calculations are indicative of the Kremlin owned company’s use of natural gas for political purposes. Payment demands in the past have resulted in Gazprom shutting off gas supplies to Ukraine and Europe not only in 2006 but again in 2009.

Last December President Vladimir Putin and the former president of Ukraine, Viktor Yanukovych agreed on a reduced price of $268 per gas unit, (discounted from $385 per unit) in exchange for the extension of Russia’s lease on its military base in Crimea. Gazprom is now demanding $485 per unit, adding charges retroactive to January 2009. In addition, Gazprom now wants advance payment for next winter’s gas.

Ukraine's deadline to make the delinquent payment of $22 billion was last Wednesday while the deadline for prepayment of next winter’s gas is May 16^th. Last week Ukraine was approved for $17 billion in an emergency loan from the International Monetary Fund which could all go to Russia.
   

Hungary, Poland, Slovakia and the Czech Republic have sent letters to Speaker of the House John Boehner and Senate Majority Leader Harry Reid asking the US to expedite approval of natural gas exports.