The EU getting smarter on Russia's energy supply

FRONT PAGE: "Russia Firm Cuts Gas To Ukraine, But EU Hit Is Cushioned," by Andrew Osborn, Wall Street Journal, 2 January 2009.

Ukraine and Russia going through some nasty negotiations, and the EU's connection to Russian gas gets caught in the play.

But this time around, the crisis seems likely to play out differently. Both Ukraine and the EU have built up their gas storage, meaning that any immediate disruption to the EU's supplies appears unlikely. And both Russia and Gazprom--which are facing their own financial woes--are taking pains to reassure customers that their differences will not affect anyone else.

See how easy that was?

The freak-out artists are disappointed again. [Sigh]

Comments

[Jerry]

umm...I'd say the EU's hit was far from cushioned:

From last week:"Hungary, Bulgaria, Turkey, Macedonia, Greece, and Croatia said Russian gas flows via Ukraine had halted, creating what Bulgaria called a "crisis situation" in the middle of winter.

EU members Austria and Romania said deliveries were down 90 percent and 75 percent, respectively, and German energy firms warned there could be gas shortages in Europe's biggest economy if the dispute dragged on and sub-zero temperatures persisted."

http://www.rferl.org/Content/Russia_Gas_Supplies_To_Bulgaria_Romania_Greece_Turkey_Halted/1366835.html

More recently:

"The EU, seemingly placid a day ago, was jolted into action by the plight of member state Bulgaria, whose government warned its citizens this morning that the country has just enough gas left to cover their needs for the day."

http://www.rferl.org/Content/Alarmed_EU_Threatens_Gas_Summit_With_Russia_Ukraine/1367006.html

[Thomas P.M Barnett]

The article doesn't infer there was no stoppage--just the opposite. The article says that the EU has built up reserves.

If I get $100 every week from my employer and one week he stops, it matters a whole helluva lot if I have $50 in the bank or $0.

So the hit was . . . . ummm . . . cushioned.

[Mark in Texas]

This is the point where France ought to have salesmen in Bulgaria, Hungary, Turkey, Macedonia and Greece offering to build and operate nuclear power plants. Electricitie d'France has an excellent reputation for safe and reliable operation of its nuclear power plants. This would be the time for them to go Wal Mart across Europe.