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Thursday, March 28, 2024

Fishing for Trout With Rope and Mashed Potatoes; Mentality of Jackasses; Gas Pains

Courtesy of Mish.

The EU stepped up its sanctions today after forcing all the ducks in line with the position of president Obama. Russia immediately responded in kind with actions on cars, clothes, and energy.

The Financial Times reports Russia Threatens to Cap Western Car and Clothing Imports.

Russia threatened to escalate a growing trade dispute between the Kremlin and the EU, saying it could cap western car and clothing imports.

The fresh warning came as EU diplomats ended a week-long deadlock on Thursday over a new round of sanctions against the Kremlin, and agreed to trigger measures to block Russia’s largest state-owned oil companies from raising money on European capital markets.

Forcing Ducks In Line

The measures were due to go into effect at the start of the week, but several EU countries balked, arguing they needed more time to assess whether the Kiev-brokered ceasefire would take hold.

Diplomats said the decision by EU ambassadors to press ahead came after Herman Van Rompuy, the European Council president, held a conference call on Thursday with the leaders of the four European countries in the Group of Seven leading industrialised nations – Germany’s Angela Merkel, France’s François Hollande, Britain’s David Cameron and Italy’s Matteo Renzi – to finalise the measures.

Russia's Response

Speaking after the EU announcement, Vladimir Chizhov, Russia’s permanent representative to the EU, told Russian newswires: “Russia has no other choice but to go for certain countermeasures.”

Russia Tightens Gas Supplies to Poland

Also consider Russia Tightens Gas Supplies to Poland.

Poland’s state gas group PGNiG said on Wednesday that Gazprom had delivered 20 per cent less gas on Monday and 24 per cent less gas on Tuesday than it was contracted to supply. Kiev confirmed Poland had been forced to stop re-exports to Ukraine in response to these cuts.

Igor Prokopiv, head of Ukraine’s gas pipeline operator, confirmed the knock-on effect in Ukraine.

“At 2pm Poland stopped reverse gas flows to Ukraine which had been in the range of 4m cubic metres,” he told journalists in Kiev. “Today Poland put in an order for 11 mcm a day, and Russia confirmed orders for 7mcm. Those 4mcm are our reverse flows.” 

Energy supplies are one of Ukraine’s most serious vulnerabilities. It is one of the world’s least efficient energy consumers and its supply crunch is being compounded by falling coal production in the Donbass region, which has been affected by conflict. Ukraine needs to import about half of its consumption of about 50 bcm annually and analysts reckon it would be hard to weather the winter without imports of 5bcm to 10bcm

The volumes of reverse-flows are modest in comparison with Ukraine’s needs. Slovakia is exporting some 21 mcm/d, Hungary can supply 16 mcm and Poland can send 4 mcm.

Priorities vs. Solidarity

Ukraine complained last month that reverse flows were running at far less than potential capacity; Hungary for example is sending only about 3 mcm, because its priority is to fill its own storage facilities in readiness for a stand-off with Russia.

Gas Pains

The above statements sum up the position quite nicely, don't they? In essence it's a big F*You to Ukraine.

Better Ukraine to be totally without gas than for the rest of Europe to suffer from any gas pains….

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Pictures: Top tpsdave at Pixabay. Bottom MemoryCatcher at Pixabay. 

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