International Experts Praise Moscow’s Actions to Minimise the Financial Crisis

International experts praised the actions of the Russian government to minimise the aftermath of the global financial and economic crisis. This statement came in an International Monetary Fund research note that was prepared for a meeting of experts of the world’s 20 leading nations. Generally, the note offers the very same estimates and forecasts that the IMF made public late last month. This year, Russia’s GDP is expected to shrink by 0.7 percent, whilst next year should see 1.3 percent in growth, which will be the best economic performance amongst the G-8 countries. Inflation in Russia, according to the IMF, which makes use of its own methods, should slow down from 12.6 percent this year to 10.9 percent next year. This is in line with the overall world tendency, although Russia boasts the best indices amongst the top 20 economies.

True, Russia, just as other world nations were, was badly hit by the current crisis, above all, because of the collapse of the oil market and plummeting prices for other raw materials. Also, the influx of foreign capital into the Russian economy dropped drastically. But, in a situation like this, it was perfectly correct of Moscow, according to the IMF experts, to make use of accumulated resources to set things right. The experts also thought highly of the well thought-out policy of the Russian government supporting internal consumer demand and easing the financial burden on the economy.

“But, of course, it took the government some time to realise the need for this kind of policy”, said Andrei Sharonov, the former Deputy Economics Minister, in an interview with Voice of Russia. “At the beginning of the crisis, the government failed to grasp the actual proportions of the emergency or its own options in fighting it. At that time, it was thought that our accumulated international liquidity in gold and currency reserves and the budget surplus would provide a basis for settling every single problem. But, as the crisis grew deeper, the government grew aware that the financial leverage at their disposal might prove insufficient to cope with the situation. So, the Cabinet changed its policy, resorting to more reasonable and better-thought-out moves; most importantly, these are planned over a longer period of time”.

On Thursday, as a result, Prime Minister Vladimir Putin was able to tell a session of the Government Presidium that Russia managed to avoid the worst shocks of the crisis. Businessmen and ordinary people alike will receive an opportunity to gradually adapt to the situation. Besides, every effort was made to prevent a landslide devaluation of the national currency, the rouble, support the branches of the production sector worst-hit by the crisis, and extend help to the affected regions.

6 February 2009

Vyacheslav Solovyov

Voice of Russia World Service

http://www.ruvr.ru/main.php?lng=rus&q=101035&cid=20&p=06.02.2009 (in Russian)

Editor’s Note:

Note well that the present economic crisis has its origins in the lunatic neoliberal economic policies of the USA and the West. In short, America is a boastful nation brought low by its belief in its own lies. By this, I mean the government, the chattering classes, and the so-called élite. The ordinary people of America did not benefit from the Clinton/Bush charade; indeed, they were raped worse than anyone abroad as their jobs were “downsized”, “outsourced”, or picked clean of benefits and reasonable compensation by rapacious businessmen backed by feckless politicians.

These fat cats are EVIL, no doubt on that score. They bring cheap goods into this country produced in nasty Third World sweatshops and close down plants employing honest American workers. That is, profit is God, and if one must sacrifice the livelihoods of simple families to it, why, so be it, can’t they get jobs in the “service sector”, anyway?

Russia is wiser as it produces more of what it needs domestically and it does not need to import strategic materials. After all, Russia has a trade surplus, and the USA has a trade deficit. Hmm… It does make one wonder, doesn’t it?

For those of us in Orthodoxy, the present crisis highlights some traits of Anglo-Saxon Americans that must be watched for with care in many of the recent converts. Two things are worrisome, “positive mental attitude” and “moving on”. The first leads to boasting, lying, and a covering of the facts. The latter leads to a juvenile demand that the guilty escape scot-free, not only letting the culpable evade the consequences of their actions, it ensures that no lessons are learned from any problem (indeed, it impedes the resolution of the situation in the first place, nicht wahr?). These attitudes fanned the economic crisis and have created a crisis in the Church (but, no one is allowed to say so), so, they must be attended to. To put it simply, don’t buy a pig in a poke, and don’t listen to therapeutese spouted by ex-Episcopalians…

Groundhog Saw Shadow of Unemployment

A statue of the Canadian “groundhog”, Wiarton Willie, in Wiarton ON. It started as a spoof in the 50s by a bunch of partying Canucks anxious to help a journalist with a story, and it just GREW. Alas, the original Willie died at the ripe old age of 22 in 1999, but, Wee Willie is carrying on the tradition.

In the last few years, Punxsutawney Phil the groundhog has made one wrong forecast after another. The American tradition, which marked its 122^nd anniversary on 2 February, states that if on that day, if the groundhog leaves the burrow where he was hibernating and he sees his shadow, which happens if the sun is shining, spring is still a long way away.

Regardless of the groundhog, the weather in Russia is still colder than in the United States, even in Pennsylvania, a state in the north-east that is the home locale of all the Punxsutawney Phil groundhogs over the years. However, now, the two countries share a problem. The second stage of the economic crisis has set in, when unemployment requires more urgent attention than the banking system. The unemployment rate in the United States is the same as in other countries. In early 2008, it was 4.9 percent in the United States as compared to 7.2 percent today. In the European Union (EU), the figures are 6.8 percent and 7.4 percent, respectively. In the estimate of the Ministry of Health and Social Development, Russia also has up to 7 percent unemployed, just like in Europe and America.

The US administration’s measures are becoming increasingly “socialist”. For the time being, everything is concentrated around “Obama’s package”, which is worth almost 900 billion USD (32.641 trillion roubles. 701.46 billion euros. 623.43 billion UK pounds). The package was approved by the House last week, and should be endorsed by the Senate this week. It contains simple, but, smart measures, such as a long-term loan of 1,500 USD (54,454 roubles. 1,170 euros. 1,039 UK pounds) per capita for the purchase of a truck or car. Washington is hoping that even such a small sum will help restore the sales of US cars, which have fallen one-third as compared with these in 2007. Needless to say, this is somewhat different from the prohibitive car import duties that have been introduced in Russia. In effect, this is a reverse action aimed at supporting domestic car-makers, but, it will produce the same effect.

We will see the positive results of Obama’s package at the end of the year or later. However, analysts are already talking about the failure of the previous package by Treasury Secretary Henry Paulson. At the Davos World Economic Forum It was described as a “failure” by Joseph E. Stiglitz, who won the 2001 Nobel Prize in Economics. His assessments of unexpected crises have been uncannily accurate. He said that the first 700 billion USD (25.412 trillion roubles. 546.21 billion euros. 484.89 billion UK pounds) given over to the banks was wasted, for they did not resume any loans. Professor Stiglitz likes the idea of setting up a special bank for problematic assets by buying them from the banks even less. As a result, they will simply run bankrupt, because banks are kept afloat by the problematic assets for which they may still get something in the future. Once again, we can draw unpleasant parallels with the EU and Russia, where banks are reluctant to issue loans, and nobody knows what to do with bad assets. Should they be written off as Prime Minister Vladimir Putin suggested in Davos? What will happen with the banks in this case? That should be thoroughly analysed.

Professor Stiglitz doesn’t like Obama’s plan either. He explained that it would lead the United States to the third stage of the crisis, an unacceptable internal debt up to 10 trillion USD (363.029 trillion roubles. 7.803 trillion euros. 6.927 trillion UK pounds) and a budget deficit of 1.4 trillion USD (50.824 billion roubles. 1.092 billion euros. 970 million UK pounds). These figures are unprecedented since the end of World War II. Interest rates on this debt that will have to be paid to American creditors are a third problem (in addition to finances and unemployment). In this case, many nations, not only the Americans, will wish they could hibernate together with Punxsutawney Phil the groundhog for a long time to come, because the ideas of how to extricate themselves out of the crisis have been very similar everywhere so far.

2 February 2009

Dmitri Kosyrev

RIA-Novosti

http://en.rian.ru/analysis/20090202/119930141.html (in English)

Prime Minister Putin Presents Measures to Overcome the Current Economic Crisis

This Voice of Russia multimedia presentation focuses on the speech given by Prime Minister Vladimir Putin at the Davos Economic Forum. Click on the URL below, then click on the image of Prime Minister Putin (the same as the image above) or on the blue words to the right of the image. Both methods shall get you to the presentation.

URL:

http://www.ruvr.ru/main.php?lng=eng&q=39632&cid=206&p=29.01.2009

Gazprom and Naftogaz Are Due To Sign an Agreement to Ensure Resumption of Gas Deliveries to Europe in the Presence of Prime Ministers Putin and Timoshenko

President Dmitri Medvedev (1965- ), greeting Ukrainian Prime Minister Yuliya Timoshenko (1960- ), in the Kremlin. Prime Minister Vladimir Putin (1952- ) is in the background.

The gas crisis, which has kept Europe on tenterhooks for almost a fortnight, is nearing a settlement. Later today, documents are due to be signed in Moscow in the presence of Russian and Ukrainian Prime Ministers Vladimir Putin and Yuliya Timoshenko to finalise the latest Russian-Ukrainian agreements on gas supplies. In the past 24 hours, Gazprom and the Ukrainian energy company Naftogaz have prepared for signing the package of documents that are needed to ensure a resumption of gas deliveries to Europe. The documents specifically deal with new versions of the contract for gas transit and an agreement on gas deliveries to the Ukraine. The settlement was made feasible owing to agreements reached by Prime Ministers Putin and Timoshenko on Saturday night.

In keeping with the agreements, this year, Kiev will pay 80 percent of the current European price for Russian gas. Russia’s gas transit tariff will remain what it was last year. The two countries will switch over to the European price formation as of January next year. This holds both for the cost of gas and tariffs for the pumping of gas across the Ukraine. Once the agreement is signed and comes into force, it is safe to claim the gas crisis is over. At least, Ms Timoshenko said the Ukraine will resume all natural gas deliveries right after the agreement is signed. You may remember that this crisis was provoked by the Ukraine, which cut off the transit gas pipelines on 7 January. Many European countries, above all those in the Balkans, have suffered from a major fuel deficit as a result and have been compelled to halt production and cut off heating in residential houses.

The crisis made politicians, suppliers, and consumers alike concentrate on the necessity of optimising gas delivery routes and creating mechanisms to prevent similar situations from ever happening again. As a part of this effort, President Medvedev called for an emergency meeting to solve the crisis. He drew attention to this need for controlling structures during the gas summit held in the Moscow Kremlin on Saturday, a conference that set the stage for the settlement of the crisis.

He said, “I think that we should learn all the possible lessons from what happened and set up both a bilateral mechanism to prevent this kind of conflict in future and a multilateral one that would involve all interested nations. Again, I’d like to emphasise one simple idea. Now, however much we may try to point out that the crisis came as a result of bilateral misunderstanding, a controversy between Russia and the Ukraine, this sort of problem does complicate things for a great number of nations, and we, therefore, need international mechanisms. As for the diversification of gas delivery routes, Russia is building the Nord Stream and South Stream gas pipelines, with the former to be laid across the bed of the Baltic Sea, whilst the latter shall be laid across the bed of the Black Sea. The two will remove the risks in Russian gas transit to Europe and boost European energy security”.

19 January 2009

Yevgeni Kryshkin

Voice of Russia World Service

http://www.ruvr.ru/main.php?lng=rus&q=98363&cid=19&p=19.01.2009 (in Russian)

Editor’s Note:

Do note well who is NOT involved. Firstly, Viktor Yushchenko is out of the loop. He is dead meat, politically. Yuliya is going to take the credit for this; as well she should, and, make no mistake on it, she smells Yushchenko’s blood in the water. His popularity rating is even lower than GWB’s, and with the departure of his American sugar daddy, his end is only a matter of time. Yuliya is a land-shark, and she, certainly, senses his loss of support (Now, where is the Coroner of Munchkin Land when one needs him? “I thoroughly examined him… he is truly and absolutely dead” (backed by a full Munchkin chorus, of course)).

Secondly, despite loud posturing and posing in the American and British press, the US and its British running-dog-lackeys were cut out of the process. A simple fact tells the story. The Russians received 80 percent of their demanded price; whereas the Ukrainians had to pay approximately double what they tendered. No matter if you slice this bologna thick or thin, the Ukrainians lost, lost publicly, and in a humiliating matter. Yuliya found out that the EU was not going to pressure Russia. Ergo, she dealt. Of course, she is going to use this in her electoral campaign against Yushchenko! Truly, one has to pity this individual. Everyone, save for himself, knows that the play is essentially over. Even his inner circle knows this. He and Saakashvili are being left to rot on the vine by the Russians. It is Führerbunker redux for the Orange and Rose “Revolutions”.

Both of these paladins of “democracy” are going down, and their own people are going to fit the noose about their necks (if they are “lucky”, they shall flee to the USA and become professors at small liberal-arts colleges in New England… then, they shall have to deal with academic politics… a fate worse than death!). In this, one can see the collapse of the Cheney/Rice scheme in the Russian Near Abroad. Everyone now knows that the USA has nothing left in the store-cupboard. Is this the “retreat from Moscow” of the Bushies? Do remember what happened to M Bonaparte…

Gas as a Political Weapon

The more the gas scandal develops, the more political it becomes. To begin with, there is turmoil in the Ukraine where the parliament demands the impeachment of the president impeachment and the resignation of the cabinet. Whilst the second option is unlikely, the first is quite possible, and here Viktor Yanukovich, the Ukrainian Communists, and the Yuliya Timoshenko Bloc see eye to eye. But even if the impeachment idea fails to get through, the gas scandal is putting an end, finally and utterly, to Yushchenko’s political career. No one knows what poison was administered to the Ukrainian president before, but, now, he has had a hefty dose of a really lethal gas.

Russia, too, is suffering politically after sustaining economic damage. It is only looking from Moscow and only at first sight that it seems that Russian energy giant Gazprom and the Russian government are winning European sympathies. Actually, freezing European consumers find both Russia and Ukraine uncongenial suppliers. Their irritation is understandable; the European housewife wants to have gas in her kitchen and does not care who is to blame, Moscow or Kiev. As for European politicians, they, too, put the blame on Russia even if they understand the situation better. They are inclined to shut their eyes to the many tricks performed by Mr Yushchenko, because the Ukraine, not Moscow, is their potential partner in the European Union and NATO.

Finally, it would be a matter of big politics and a devastating headache for Russia if the Ukraine refuses to transport Russian gas to Europe for good. Not for a week or two, but, forever. True, the Ukraine needs Russian gas, but, if the anti-Russian policy prevails, our neighbour may well risk that step. Its own gas and coal, plus fuel oil bought in Europe, could help the Ukraine get through these troubles. Such a tightening of the energy belt would, of course, slow down the Ukraine’s economic development, but, anti-Russian feelings have driven quite a few countries to such lengths in the past. Ukrainian nationalists seem to be unafraid of shooting themselves in the foot.

Given such a prospect, both the Ukraine and Russia would be losers, especially Russia, which at a time of the worst global crisis would lose the European gas market, a dependable source of currency earnings for the country. The Nord Stream pipeline will go into operation at best in the fall of 2011, but, by that time, (if Ukrainian transit to Europe is blocked all the while) our European consumers would have opted for other energy sources and other suppliers. Of course, Europe would be the third suffering party. To give up Russian gas all of a sudden is a great loss for the European economy and a disaster for some countries.

Who is winning in this squabble is perhaps made clear by a document signed by the Ukraine and the United States and just published in Izvestiya. In December, Ukrainian Foreign Minister Vladimir Ogryzko and US Secretary of State Condoleezza Rice signed a Charter of Strategic Partnership. It says that Washington will now help upgrade Ukraine’s badly worn-out gas pipelines. Of course, it is for Kiev to decide who will be repairing its gas system. But, it is clear that charters are not signed for repairs alone. Such texts are usually only the tip of an iceberg. The most important issues are discussed without protocol.

This suggests a very likely scenario, one described by Gazprom’s deputy CEO Aleksandr Medvedev. He says there is the impression that “all this jazz in the Ukraine is orchestrated from another country”. There seems to be a simple explanation for the Ukraine’s apparent illogical and irrational behaviour, for, it seems, Kiev is implementing plans agreed on with the Bush administration. The logic of this game plan may have many aspects. It is not only a way of tying the Ukraine to the US more tightly, but, also, a policy of holding Russia back. Also, it might be an anti-European move. Too many things in EU policy appear to irritate the US,  a competitive European economy unacceptable to the Bush administration, a French president showing activity during the events in the Caucasus last year, a call by some European leaders to the US to heed President Medvedev’s proposals to reform the European security system, etc.

Whether or not the Obama administration will join these anti-Russian and anti-European games is anybody’s guess. Some indirect signs show that it will not. But, whatever is said or done, it is clear that gas banned as a weapon has found a new niche, in politics. With the global crisis in full swing, using it is particularly risky and unwise. However, the departing American administration has never shown much wisdom.

14 January 2009

Pyotr Romanov

RIA-Novosti

http://en.rian.ru/analysis/20090114/119492588.html (in English)

Editor’s Note:

Let us compare the American behaviour during the Clinton/Bush era with the actions of Russia after the defeat of Napoleon in the reign of Tsar Aleksandr Pavlovich. In both cases, there was a complete collapse of one side in a conflict. Did Aleksandr Pavlovich send emissaries to Paris demanding that the French adopt Russian institutions and methods? Did he hector the French with condescending lectures on how stupid, dense, and ignorant they were, as the Americans did in the 90s and early 00s?

NO!

He reached out a hand in Christian forgiveness to his former enemy. He did not kick the French when they were down. Now, which society proved itself mature, understanding, and God-fearing? I’ll say this; it certainly was not the USA of the Clinton/Bush junta! Do not forget that William Jefferson Clinton bombed Belgrade on Orthodox Easter (after sanctimoniously proclaiming a bombing halt in Iraq due to Ramadan… what vile hypocrisy!) and that Richard Cheney supported the use of torture, in a public statement to the press, no less! I would say that the USA has degenerated, and that the contagion is very deep, indeed. In short, the USA has become the leading rogue state on the planet due to the actions of the neocon nomenklatura, and it must be brought to heel, the sooner, the better.

In any case, where is the money coming from that Cheney and Rice promised to the Ukrainian nationalists and the Georgian revanchists? The US economy is in the tank and the projected US federal deficit for next year is 1.2 TRILLION dollars. Even if Barack Obama wished to continue this evil foreign policy, there is nothing left in the store-cupboard. There is a silver-lining to the present economic crisis…

A Representative of the Ukrainian President Claims that a Gas Price of 200 USD per 1,000 Cubic Metres is Economically Justified

A representative speaking for Ukrainian President Yushchenko believes that a price of around 200 dollars (6,464 roubles. 152 euros. 137 UK pounds) per 1,000 cubic meters for Russian natural gas supplied to the Ukraine would be economically justified. “The economically justified price for the first quarter of 2009 should be between 192.60 dollars (6,234 roubles. 147 euros. 132 UK pounds) per 1,000 cubic meters with a transit rate 2.20 dollars (71 roubles. 1.68 euros. 1.51 UK pounds) [per 1,000 cubic metres per 100 kilometres] or 218.80 dollars (7,082 roubles. 167 euros. 150 UK pounds) with a transit rate of 2.47 dollars (79 roubles. 1.89 euros. 1.69 UK pounds)”, said Bogdan Sokolovsky, President Yushchenko’s international energy security envoy. According to the Ukrainian president’s website, the calculations, “based on real prices for Central and Western Europe”, have been presented to the Russian side. Mr Sokolovsky said that the preferential prices in place until 31 December, about half the supply and transit rate, were not considered in the calculations.

Russian energy giant Gazprom earlier said that the Ukraine had refused an earlier preferential price of 250 dollars (8,092 roubles. 191 euros. 171 UK pounds) per 1,000 cubic meters and would now have to pay “the average European market price of 450 to 470 dollars (14,567 to 15,214 roubles. 344 to 359 euros. 309 to 322 UK pounds) [per 1,000 cubic metres]“. Moscow and Kiev failed to reach an agreement on a new gas contract for 2009 on 31 December, which led to Russian energy giant Gazprom suspending supplies to the Ukraine on 1 January. Gazprom cut off supplies to Europe a week later, saying the Ukraine was stealing gas intended for EU consumers. Following mediation by the EU, the two sides agreed to resume supplies, however, a test delivery failed on Tuesday, and Russian gas transported via the Ukraine has so far failed to reach the EU, leading Moscow to accuse Kiev of blocking gas deliveries. Earlier on Thursday, Russian energy giant Gazprom complained that it had received a third refusal from its Ukrainian partner Naftogaz to transport Russian gas to Europe due to the lack of a “technical” gas transfer agreement for 2009.

15 January 2009

RIA-Novosti

http://en.rian.ru/world/20090115/119530785.html (in English)

Editor’s Note:

Aren’t they SPECIAL? The last time I looked, 192.60 or 218.80 dollars was not 470 dollars. In short, the Orangies want a price that is 46.5 percent of the going market rate in the EU at most, or, they actually quote a figure that is 40.9 percent of the current market price. That is not “based on real prices for Central and Western Europe”, not by a long shot! The American neocons want the Russians to dote on their lickspittle client state with inordinate favouritism whilst the Orangies spit in Russia’s face as Cheney and Rice giggle dementedly. No reasonable country puts up with such provocation.

Who are the losers here? Obviously, first of all, the shivering people in Central and Western Europe, suffering under the effects of one of the coldest winters on record (Where’s the global warming? It’s gotta be here someplace… Where’s the beef?!). Secondly, the peoples of the Ukraine suffer under the rule of a junta that dances blindly to the tune of the American neocons. Thirdly, the “little people” in the Galician diaspora are being used by cynical sorts to bolster a failed neo-Fascist successor-state and the Vatican project of a Uniate Ukraine (I feel sorry most of all for these folks, for their natural affections for an ancestral homeland are being abused for low motives). Lastly, the American people are being lied to by their media and government, just as they were in the South Ossetia affair.

There are NO winners in Yushchenko’s reckless and juvenile game of “chicken”. God willing, President Obama shall end the Bushie encouragement of such sorts. In any case, all of America’s resources have to be devoted to rebuilding the US domestic economy after it was gutted during the laissez faire Clinton/Bush neoliberal robber-baron era (Do remember Enron and WorldCom… how about “outsourcing?” Hmm…). Such childish nastiness has to cease.  In any case, for all parties, there is the hard work of reconstruction ahead after an era of profligate spending on tick caused by the adolescent notions of “positive thinking” and “moving on”. Our work is cut out for us…

For the Third Time, Naftogaz Refuses to Transit Russian Gas to the EU

For a third time, the Ukrainian national energy company Naftogaz refused to transit Russian gas to European consumers, the Russian gas monopoly Gazprom said on Thursday. Last night, Gazprom sent Naftogaz another application for the transit of 99.2 million cubic meters of gas through the Sudzha entry point on Thursday. The volume included 13.9 million cubic metres of gas for Moldova, 63.1 million cubic metres for the Balkans, and 22.2 million cubic metres for Slovakia. “The response contained a refusal to transit gas over the absence of a technical gas transfer agreement for 2009″, Gazprom said, urging Naftogaz to honour its gas transit commitments.

Some 18 EU countries have been affected by the stoppage of Russian gas supplies through the Ukraine, which is the transit route for some 80 percent of Russia’s exports to Europe. An EU-brokered deal to resume supplies on Tuesday also resulted in failure after Russia’s attempts to pump gas through the Ukrainian network were unsuccessful. The prime ministers of Russia, Moldova, Slovakia, and Bulgaria held talks in Moscow to try and find a resolution to the gas dispute and the Ukraine’s refusal to transit Russian gas to Europe, which Deputy Prime Minister Igor Sechin said cost Gazprom 1.2 billion dollars (38.645 billion roubles. 910  million euros. 819 million UK pounds) in lost revenue.

Robert Fico, the Slovakian premier, whose country was severely affected by the gas dispute, told a press conference that he saw no quick end to the crisis, which he described as a “deep political row”. The Russian and Ukrainian premiers will meet in Moscow on Saturday to discuss gas transit to Europe, the Russian premier’s spokesman said on Thursday. “A phone conversation between Russian Prime Minister Vladimir Putin and his Ukrainian counterpart, Yuliya Timoshenko, took place today on the initiative of the Ukrainian side”, Press Secretary Dmitri Peskov said. “The prime ministers agreed to hold a working meeting in Moscow on 17 January to discuss which steps to take”. Russia insists that its gas exit points have been open for three days, as of today, with gas pressure along the export pipeline sufficient to allow for the immediate resumption of gas transits to Europe.

15 January 2009

RIA-Novosti

http://en.rian.ru/russia/20090115/119509033.html (in English)

Editor’s Note:

The Ukraine is holding Europe up for ransom at knifepoint, with the full blessing of the USA. That should tell the EU who their real friends are, and they aren’t in Washington, Kiev, Tbilisi, Riga, or Tallinn, that’s for certain. Do reflect on the fact that Bush, Cheney, Rice, et al are going to be leaving Foggy Bottom in five more days. That is, they have five more days in which to create mischief, primarily, in an attempt to derail Barack Obama’s planned domestic agenda. This crisis has “Made in the USA” stamped all over it. Remember, Yushchenko (as for Saakashvili before him, as well) does not even go the bathroom without asking American permission. What was his recent popularity rating amongst Ukrainian citizens? Gee… even GWB did better in his rating in the USA, and that’s saying a lot!

Medvedev Demands that the Ukraine Pay Russia 1.1 Billion USD for Lost Gas

President Dmitri Medvedev (1965- )

President Dmitri Medvedev demanded that the Ukraine should pay 1.1 billion dollars (34.998 billion roubles. 839 million euros. 754 million UK pounds) to Gazprom to compensate it for lost contracts with Europe because of interrupted transit. During his meeting with the president, the head of Gazprom, Aleksei Miller, said that the sum represented the funds that the company did not receive, but, was entitled to, since 1 January. President Medvedev said that Russia could not loose such a large sum of money. He added that an end had come to the free ride for the Ukrainians, and that money should be collected from those responsible for wrongdoing. In his opinion, experts and lawyers should calculate the losses and make a protocol.

Mr Miller said that his company received from the Ukrainian Naftogaz concern a draft agreement on conditions of Russian gas transit via the Ukraine. Under the draft, Russia should deliver to the Ukraine free of charge some 360 million cubic meters of gas in January, 600 million cubic meters in February, and the same amount in March. Mr Miller said that his company actually received a suggestion that it should make a present of 700 million* dollars (22.271 billion roubles. 533.74 million euros. 479.81 million UK pounds) to Naftogaz for the resumption of gas transit. He added that the Ukraine possesses all technical means necessary to resume gas pumping. President Medvedev entrusted the head of Gazprom to keep in close touch with his Ukrainian colleagues and other participants in the matter of gas transit and do all he can to shortly resume gas transit on conditions acceptable to Russia.

14 January 2009

Voice of Russia World Service

http://www.ruvr.ru/main.php?lng=eng&q=38690&cid=220&p=14.01.2009 (in English)

* The original has 700 BILLION dollars, but, I believe that to be a typographical error. However, it is believable that the Ukrainian bandits would demand 700 MILLION dollars in graft (unfortunate, but, true).

Editor’s Note:

Looks like the Orangies are looking for a free lunch! Don’t they know it doesn’t exist? However, look for this crisis to end by 20 January. Why? The Bushies will leave Foggy Bottom and the White House, and Yushchenko shall lose some of his loudest supporters in the USA. In any case, his economy is poised on a knife-edge, and, as one of the Ukrainian leaders said, “We are headed for an economic tsunami”. My heart breaks for all the simple people in the Ukraine who are suffering due to the posturing of the Orangies, their neocon supporters in the US and UK, and the loud Galician Uniate amen corner in the diaspora. No one gives a tinker’s damn about them, especially not Yushchenko and his cronies. May God see and judge!

Gazprom says that Kiev Refuses to Accept Russian Gas Intended for European Customers

For a second day, the Ukrainian national energy company Naftogaz refused to accept Russian gas due to be transited to Europe, Russia’s gas monopoly Gazprom said on Wednesday. Gazprom said it submitted another application with Naftogaz on Wednesday for the transit of 98.8 million cubic metres of gas, including 13.9 million intended for Moldova, 62.7 billion for the Balkan states, and 22.2 million for Slovakia. Russia, which has accused the Ukraine of tapping gas bound for Europe, resumed shipments after a weeklong cut-off on Tuesday after a team led by EU monitors was deployed at gas metering stations in the Ukraine. However, Gazprom later said that Kiev was blocking the gas shipments.

The monopoly said on Wednesday it had requested that gas be transited via the Sudzha entry point on the Russian border, an export pipeline with direct access to the nations affected by the dispute, including Bulgaria, Romania, and Turkey. Gazprom also said that Naftogaz was demanding that the gas be sent via other transit stations, used mainly for gas intended for Ukraine’s domestic use, and that they receive 140 million cubic metres in order to be able to resume supplies. The Ukraine claimed that Russia has not provided enough “technical gas” necessary to maintain pipeline pressure and pump the required volumes to Europe. Kiev also said that Moscow had demanded a complicated transit route be used that would force Ukraine to cut its domestic supplies.

“Naftogaz’s repeated refusals demonstrate that the Ukraine is unable to replenish the gas reserves it has siphoned off and resume transits. Gazprom is prepared to restart supplies for European consumers at any moment”, a spokesman for the Russian energy giant said. On Wednesday, the Naftogaz chief rejected Russia’s claims that the Ukraine had illegally siphoned off its gas, saying the company had transited 1.2 billion cubic meters of gas to Moldova. Oleg Dubyna also said gas transits were “technically” not possible at the moment. “We cannot reactivate the [transit] network for such insignificant amounts [of gas] and for an indefinite time”, Mr Dubyna said, urging a provisional agreement with Russia that stipulated transit volumes and routes.

Yuri Prodan, the Ukrainian energy minister, urged EU officials on Wednesday to pressure Moscow over the delays in transits. European Commission President José Manuel Barroso was reported to have called the crisis “unacceptable and incredible” and warned the EU could advise energy firms to sue Russian and Ukrainian energy companies unless gas supplies were restored quickly. The crisis has hit about 20 EU countries in the height of winter, forcing them to close schools, factories and leaving householders without heating. The prime ministers of Slovakia, which has said it could reactivate its aging nuclear power plant to make up for the shortfalls in energy supplies, Bulgaria, and Moldova are due to meet with their Russian counterpart in Moscow on Wednesday to discuss the situation. Russia cut off gas supplies to the Ukraine on 1 January after talks on debt and a gas price for 2009 broke down. On 7 January, Moscow cut off shipments to Europe, accusing the Ukraine of siphoning off gas in transit for European consumers.

Gazprom’s deputy CEO, Aleksandr Medvedev, called the Ukraine’s behaviour in the dispute “unbelievable” and suggested that the United States could be behind the row. “It looks like the entire musical show underway in the Ukraine is being orchestrated from outside the country”, he said. US State Department spokesman Sean McCormack rejected the claim as “totally without foundation”. On Wednesday a popular Russian newspaper said that under a cooperation agreement Kiev and Washington signed in December, the US would modernise Ukraine’s crumbling transit pipelines and could receive control of the vast network. “This may explain Kiev’s ‘bravery’”, in the dispute, Izvestiya said. The paper also said, “America could well use the current tensions in the Ukraine as a pretext for one of its campaigns ‘to protect democracy’”. In his turn, Ukrainian President Viktor Yushchenko accused Russia of using the dispute to try to seize control of the Ukraine’s pipelines.

14 January 2009

RIA-Novosti

http://en.rian.ru/russia/20090114/119486126.html (in English)

Editor’s Note:

I believe that Izvestiya is correct in its assessment. GWB is desperate to “leave a legacy”, Condoleezza Rice is an evil woman without any scruples whatsoever, and the neocons wish to leave a mess for Barack Obama. Reflect on the fact that Yushchenko has a favourability rating of 2.4 percent. 2.4 percent! Even GWB has done better in that regard.

The Galician Uniate nationalist extremists are shown for what they are, truly and without equivocation. They are a pack of Baron Munchausens without regard for the truth, for others, or, for that matter, the peoples of the Ukraine (who are mostly NOT Ukrainian, they are the victims of Soviet internal boundaries that did not reflect ethnic realities).

This sounds eerily similar to the situation in August, when Georgia started its invasion of South Ossetia with an indiscriminate Grad bombardment of sleeping civilians. The US backed that, as well, and, indeed, signed a “strategic partnership agreement” with Saakashvili recently. As for Mr McCormack’s denials, do remember that he is part of the same gang that touted Iraqi WMDs… Methinks the maiden doth protesteth TOO much.

Aren’t you glad that John McCain and feckless Mizz Sarah weren’t elected last November? They are amongst the select group of people stupider than Viktor Yushchenko. I shudder to think what would have happened. Thank the good God, the world was spared that, at the least.

URGENT: Gazprom Turns Down Alternative Gas Routes Proposed By the Ukraine

Gazprom will use the Sudzha route for gas deliveries to Europe, but, not the alternative routes proposed by the Ukraine because they are not export pipelines, a Gazprom official said on Tuesday. “Valuika and Pisarevka [gas measuring stations] are not export points, but, they service Ukrainian domestic consumers. We have no intention to supply gas to the Ukraine, as no contract has been signed”, said Alexander Medvedev, a deputy chairman of Gazprom’s management committee.

13 January 2009

RIA-Novosti

http://en.rian.ru/russia/20090113/119472042.html (in English)

Editor’s Note:

Look for massive spin on this from the Galician Uniate diaspora amen corner in the West. In short, the Orangies show the world that they are nothing but unprincipled thieves. All decent people must oppose this. Russia is in the right, it must be supported. If you took delivery of the gas, or, worse, stole it, you must pay for it in full. It is that simple.