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Monday, December 23, 2019

Finally some good news -- Russia & Ukraine End "Natural Gas War"








(1)
Ukraine has been 
in the U.S. news 
a lot in 2019.

(2)
For all five years, 
the top nation 
for this blog's 
page views 
was always the U.S., 
usually followed by 
a few other English 
speaking nations 
in the top five.

Suddenly Ukraine 
was number one here, 
with a burst of about 
1,000 page views 
in one seven day period ?

So I tried to post one article 
of interest to Ukraine -- it was 
a negative article about 
a natural gas pipeline "war" 

There may now be good news. 

Instead of a natural gas "war", 
it now appears that 2020 
will have normal Russian 
natural gas pipeline flow 
to Europe, through Ukraine.

Late on Thursday, 
Russian energy minister 
Alexander Novak, and 
Ukrainian counterpart 
Oleksiy Orzhel, 
announced they 
had an agreement,
in principle, for a 
new 2020 contract.

Talks were 
set to continue 
in Minsk on Friday. 

On Friday, the 
Financial Times reported 
a major gas transit deal 
between Ukraine and 
Russia "in principle" .

This deal, when signed, 
would end a standoff 
after Ukraine ceased 
buying gas directly 
from Russia's Gazprom 
in 2015.

Ukraine gains some $3BN 
annually from pipeline fees 
-- Gazprom is responsible 
for over a third of the gas 
consumed in the EU.,

That natural gas 
passes through Ukraine 
via a pipeline, on the way 
to central, southern, and 
northwest Europe.

A stand-off between
the two countries 
had threatened 
to disrupt supplies 
to Europe when the 
existing contract 
expired on 
December 31, 2019.

The new contract 
is expected to keep 
Russian gas flowing 
through Ukraine 
to Europe.

Ukrainian negotiator Orzhel 
said the talks were mediated
by the European Commission 
in Berlin.


The new agreement 
ends the U.S. rationale 
for new US sanctions 
targeting companies 
laying pipeline for the 
massive Gazprom-Europe 
Nord Stream 2 natural gas 
pipeline from Russia 
to Germany.

Nord Stream 2 sanctions 
were included in the 2020 
NDAA (U.S. Defense 
spending bill), about to 
cross Trump's desk, 
aiming to derail the project. 

The 760-mile Nord Stream 2 
pipeline would allow Russia 
to export natural gas 
directly to Germany.

The Trump Administration 
opposed it, as depriving 
Ukraine of badly needed 
gas pipeline transit fees 
along the current route 
across Ukraine, for 
Russian natural gas 
going to Germany.

The Trump Administration 
also charged Russia 
with attempting to 
compromise Europe's 
energy independence 
for geopolitical leverage. 


Just four years after 
the Crimea crisis, and 
just after Ukraine's Zelensky 
met with Putin a few weeks
ago in Paris, there seems to be 
a compromise, defusing 
tensions, despite US meddling.

On Friday morning, 
UK contracts for natural gas 
delivery in January 2020 
were down 7%,
to 36.25 pence per therm.