Russia Reportedly Says That The EU Can’t Re-Export Gas To Ukraine

AFP

SEP. 26, 2014

AFP

Frankfurt (AFP) – Russian Energy Minister Alexander Novak warned Friday that Europe is contractually not allowed to re-export gas to Ukraine and could see its supplies cut if it did so. 

In an interview with the business daily Handelsblatt published ahead of a new round of talks in Berlin between Russia, Ukraine and the European Commission on Friday, Novak insisted that Moscow would meet all its contractual commitments. 

“But the agreed contracts do not foresee a re-export,” Novak said.

“We hope that our European partners will stick to the agreements. That is the only way to ensure there are no interruptions in gas deliveries to European consumers,” Novak said. 

The comments come ahead of fresh talks in Berlin between Russia, Ukraine and the EU Commission. Russia suspended deliveries to Ukraine in June due to a price dispute and that could affect supplies to some European countries. 

Russia says Ukraine owes it $5.3 billion for unpaid gas deliveries. 

“We’re prepared not to demand immediate payment straight away. The Ukrainian group Naftogaz should pay $2.0 billion now and we can restructure the rest of the debt,” Novak told the newspaper. 

OBAMA ANNOUNCES NEW SANCTIONS ON RUSSIA

BRETT LOGIURATO

 SEP. 12, 2014

REUTERS/Jason Reed

President Barack Obama with Russian President Vladimir Putin

President Barack Obama on Thursday announced the U.S. would join the European Union in intensifying sanctions on Russia’s finance, energy, and defense sectors.

“We will deepen and broaden sanctions in Russia’s financial, energy, and defense sectors,” Obama said in a statement. “These measures will increase Russia’s political isolation as well as the economic costs to Russia, especially in areas of importance to President Putin and those close to him.”

Obama declined to offer specifics on the new measures, saying the White House would outline them in more detail on Friday. 

Obama said the new sanctions were being imposed in response to Russia’s “actions to further destabilize Ukraine over the last month,” including an incursion of at least 1,000 Russian forces into eastern Ukraine to fight with pro-Russian separatists in eastern regions of the country. The president also said a ceasefire reached last week has not produced “conclusive evidence” Russia has worked to de-escalate the crisis.

The new E.U. sanctions impose travel bans on 24 Russian officials, and further cut off European exports to Russia of certain high-technology products. According to The New York Times and other reports, the new sanctions are expected to take aim at Russia’s energy industry — in particular its oil exploration.

This is the fourth round of escalatory Western sanctions against Russia for its involvement in the Ukrainian crisis.

“I encourage President Putin to work with Ukraine and other international partners, within the context of the Minsk agreement and without setting unreasonable conditions, to reach a lasting resolution to the conflict,” Obama said.

“As I said last week, if Russia fully implements its commitments, these sanctions can be rolled back. If, instead, Russia continues its aggressive actions and violations of international law, the costs will continue to rise.”

Worst-Case Scenario For The Russia-Ukraine Conflict

DEUTSCHE BANK: Here’s The 

SAM RO

JUL. 21, 2014, 7:20 AM

The latest round of U.S. sanctions on Russia and the tragedy of Malaysia Airlines flight MH17 in eastern Ukraine have everyone on edge about tensions on the Russia-Ukraine border.

“Core issues in the Ukraine crisis remain unresolved,” said Deustche Bank analysts Raj Hindocha and Marcos Arana in a presentation before the MH17 incident. “[T]he risk of escalation into a wider regional military conflict can’t be ruled out.”

Hindocha and Arana included this slide laying out three scenarios for the region.

Under their worst-case scenario, warn that “Russia’s relationship with Europe comes into play” with the “Potential for disruption of Russian gas supply to Europe.”

The European Union has substantial trade ties with Russia, and petroleum trade is arguably the most important.

Deutsche Bank

Russia Media: A Malaysian Passenger Plane Crashed In Ukraine-Russia Border

BUSINESS INSIDER

JUL. 18, 2014, 5:13 AM

YouTube

A Boeing 777 Malaysian airlines crashed in Ukraine near the Russian border, Interfax is reporting, citing “a source in the aviation circles.”

“Boeing Malaysian airlines operate flights to Amsterdam — Kuala Lumpur for 50 miles before entering the airspace of Russia, began to decline, he was subsequently found burning on the ground in Ukraine,” the source said, adding that 280 passengers and 15 crew members were onboard.

Military expert Dmitry Tymchuk says the Malaysia Airlines plane crashed to the north of Torez in the Donetsk region, according to Ukrainian journalist Myroslava.

The area is controlled by pro-Russian separatists who are fighting the Ukrainian army.

On July 8, the State Aviation Administration of Ukraine closed the airspace to civilian aircraft after a military transport plane was shot down.

The aircraft reportedly had to cross the Russian border at about 9:30 EDT.

Ukrainian activists tweeted a map where they say

Google Maps

Russia May Want A Cyprus Naval Port In Exchange For A Bailout

Joe Weisenthal

 Mar. 20, 2013

If you want to know why the EU is nervous about Cyprus negotiating with Russia for a bailout, look no further than this Ekathimerini report on the status of negotiations between the two countries.

It is likely the Russians will ask for some form of compensation for such an investment. A naval port in Cyprus for the Russian fleet and access to the country’s natural gas reserves are among the rewards Moscow might seek.

Future gas reserves are one thing. A naval port? Now that gets interesting.

And here's a reminder of where Cyprus is:

CHART OF THE DAY: This Country Defaulted, And Now It Has One Of The Healthiest Public Sectors In The World

Joe Weisenthal

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There is life after default.

This below chart from Barclays looks at all the world's key governments, looking at debt and deficit to GDP.

The very best is Chile, which has very little public sector debt, and a government surplus. The country is blessed with commodities, and fast-growing neighbors.

Next best: Russia, which is also blessed with natural resources, but which defaulted back in 1998. There can be life after default.