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Gazprom Raises Concerns Over Gas Transit to Europe via Ukraine

By James Marson MOSCOW–Ukraine is taking gas from its underground storages, which could have a “negative effect” on gas transit to Europe, a senior executive from Russian state gas firm OAO Gazprom (GAZP.RS) said Thursday. Ukraine said this week that it stopped taking gas from Gazprom at the start of November as it had sufficient supplies until the end of the year. “That means domestic production and underground storages are used to provide for the needs of the domestic market,” said Pavel Oderov, head of Gazprom’s International Business Department. He said gas reserves in storage are needed to ensure gas transit to Europe. Russia accounts for one-quarter of Europe’s gas needs, the bulk of which flows via Ukraine. Supplies to Europe were disrupted in 2006 and 2009 amid price and contract disputes between Ukraine and Russia. Ukraine owes $1.3 billion for gas deliveries, and Gazprom is considering granting an […]

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Egypt: Russia too important to be US substitute

AP Photo CAIRO (AP) — Egypt’s foreign minister sought to downplay speculation of a major shift in his country’s foreign policy, saying during a top-level Russian visit Thursday that Moscow was too important to be a substitute for the United States as Cairo’s key ally and backer. The remarks by Nabil Fahmy came after talks with his visiting counterpart Sergei Lavrov, who is leading the Russian delegation to Cairo. “We look forward to cooperation with Russia in multiple fields and that is because of Russia’s significance in the international arena,” Fahmy said at a news conference. “We look forward to strong, continuous and stable relations with Russia. We seek to energize a relation that is already in existence.” When asked whether Russia would replace the U.S. as his country’s chief ally, Fahmy said Egypt was not looking for a “substitute for anyone.” “Russia’s weight is too heavy to be […]

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Insight: Russia fears return of fighters waging jihad in Syria

NOVOSASITLI, Russia (Reuters) – A scrawny 15-year-old this summer became the first from his deeply religious Muslim village in Russia’s southern Dagestan province to die fighting alongside rebels in Syria. Some regard him as a martyr for joining the rebels in the fight against Syrian President Bashar al-Assad who is supported by Russia. Moscow now fears that hundreds of Russian-born militants it says are fighting in Syria will return experienced in warfare to join an insurgency in Dagestan and its other North Caucasus provinces by militants fighting for an Islamic state. Violence in the region claims lives almost daily. Fifteen men from Novosasitli alone have died in shootouts with Russian forces in the last four years, locals say. Analysts say fighters could also try to strike during the 2014 Winter Olympics in February in nearby Sochi. President Vladimir Putin, who has staked his reputation on the Games, has said […]

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Rosneft discloses new $6 billion oil supply deals with BP

MOSCOW (Reuters) – Russia’s top crude oil producer Rosneft said on Tuesday its board had approved deals to sell oil product cargoes to BP worth over $6 billion, on top of a previous deal to sell oil worth $5.3 billion. The Russian state-owned company said in a filing that it would sell up to 3.2 million metric tons of fuel oil to BP Singapore worth as much as $2.6 billion from the Far East ports of Nakhodka or Vanino between November 2013 and December 2014 with a possibility to lift it in 2015. Rosneft has not disclosed the timeframe for other deals, but a source familiar with the agreements, said the deliveries should be fulfilled over the next 12 or 13 months. Rosneft declined to comment further. Rosneft will also sell up to 1.44 million metric tons of diesel to BP worth as much as $1.77 billion from the […]

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Egypt turns to Russia as relations with Washington sour

The Russian foreign and defence ministers will travel to Egypt next week on a visit seen as signalling a growing rapprochement between the two countries as the military-backed authorities in Cairo reach out for new allies and seek to lessen dependence on Washington. A Russian official spokesman said that Sergei Lavrov, the foreign minister, and Sergei Shoigu, the defence minister, will discuss issues touching on “military and technical co-operation” – seen as a Russian euphemism for arms sales. Cairo’s relations with Washington , its primary aid donor and military supplier for four decades, have frayed since the coup in July, which ousted the Islamist Mohamed Morsi, Egypt’s first elected president. As tensions with Washington increased over the summer culminating in a US decision to withhold part of its annual $1.3bn in military aid, Egyptian officials started to hint that their country would seek a realignment in its foreign relations. […]

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Boom Years Are Over, Says Russia's Economy Ministry

MOSCOW—The Russian government slashed its economic forecasts for the next two decades, issuing a dire warning that the oil-fueled growth that has been a foundation of Vladimir Putin ‘s rule is over and there’s nothing likely to take its place, given the country’s poor investment climate and aging infrastructure. The Economy Ministry said it expects growth at an annual rate of 2.5% to 2030, below the global average, meaning Russia’s steady climb up the ranks of global economies in Putin’s early years is likely to reverse. Boosted by high oil prices and reforms following the Soviet collapse, the economy grew at an average rate of 7% in the years before the 2008 global financial crisis. Since he returned to the presidency in 2012, Mr. Putin has called for 5% growth for Russia to catch up with leading global economies, but the latest forecasts say that goal is far out […]

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Boom Years Are Over, Says Russia’s Economy Ministry

MOSCOW—The Russian government slashed its economic forecasts for the next two decades, issuing a dire warning that the oil-fueled growth that has been a foundation of Vladimir Putin ‘s rule is over and there’s nothing likely to take its place, given the country’s poor investment climate and aging infrastructure. The Economy Ministry said it expects growth at an annual rate of 2.5% to 2030, below the global average, meaning Russia’s steady climb up the ranks of global economies in Putin’s early years is likely to reverse. Boosted by high oil prices and reforms following the Soviet collapse, the economy grew at an average rate of 7% in the years before the 2008 global financial crisis. Since he returned to the presidency in 2012, Mr. Putin has called for 5% growth for Russia to catch up with leading global economies, but the latest forecasts say that goal is far out […]

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Russian long-term forecast sees oil price flat in real terms

MOSCOW (Reuters) – Russia forecast on Thursday that oil prices would remain flat in real terms through to 2030, taking a more bullish view than many independent forecasters who expect an exploration revolution to deliver ample supply and depress prices. After taking inflation into account, the price of crude oil and other commodities will remain roughly unchanged over the period, the government said in its revised long-term forecast for Russia’s $2 trillion economy. Expressed in 2010 dollars, making prices comparable over time, the average cost of a barrel of oil would be in a range of $90-$110. In nominal terms – or the money of the day – crude is seen rising to $160-$170 per barrel by 2030, said the forecast, which cited "worsening production conditions and increased demand from developing countries". The price forecast by Russia, the world’s leading oil producer, is more bullish than expectations of a […]

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Gazprom: Ukraine short on paying off debt

MOSCOW, Nov. 6 (UPI) — It’s too early to declare a thaw in the natural gas relationship between Russia and Ukraine, a spokesman from Russian gas company Gazprom said. Alexei Miller , chief executive officer at Gazprom, said last week Ukraine has more than $880 million in unsettled debt from its August natural gas bills. Sergei Kupriyanov , a Gazprom spokesman, said Kiev has a long way to go before settling its obligations. “We have received several small installments for gas supplies in August, but it’s too early to speak about complete payment of the debt,” he was quoted by Russia’s state-backed news agency RIA Novosti as saying Tuesday. A debt row in 2009 prompted Russia to cut gas supplies to Ukraine. That decision left downstream European consumers in the cold for weeks because most of their Russian gas supplies run through Soviet-era pipelines in Ukraine. The Ukrainian government […]

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EU optimistic over latest Russian, Ukrainian gas spat

KIEV, Ukraine, Nov. 5 (UPI) — Neither party to the latest natural gas row between Ukraine and Russia seems interested in revisiting past conflicts, a European commissioner said. Gazprom Chief Executive Alexei Miller said last week Ukraine has yet to pay its August natural gas bill of $882 million. Gazprom cut natural gas supplies to Ukraine most recently in 2009 because of payment concerns. European Energy Commissioner Gunther Oettinger said he was upbeat about the prospects for a resolution. “I am sure everyone is interested that the year 2009 [is not repeated] again,” he was quoted as saying in a Tuesday report from the National News Agency of Ukraine. He stressed the onus may be on Russia to resolve the issue because of its reliance on natural gas revenue from members of the European Union. European countries get about 20 percent of their natural gas needs met by Russia, […]

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