Category:

Before the fear of war, fear of fracking in Ukraine

SLOVYANSK, Ukraine — A hot July day, and the neighbors and children of a half-ruined five-story building on Bulvarnaya Avenue gathered around a bench for a long discussion of their daily fears. Locals seemed to have consensus on who’s at war: the U.S. and Russia over control of Ukraine, they all agreed. But even now, three months past the day the first shell fell on Slovyansk, they still had trouble comprehending why their green, sleepy hometown still was trapped in this conflict. Residents of the bombed building remembered how in April, local and Russian-assigned rebel commanders chose to set up the capital for their forces in this town. shale, Donbass, Ukraine The people of the Donbass, the country’s gritty industrial region in the east, were not naive. They realized that gas pipelines crossing the border with Russia and the shale gas fields near Slovyansk — with a potential reserve […]

Posted On : Published By : Tom Whipple
Category:

Ukraine Threatens Oil and Gas Cut-Off in Russia Sanctions

Ukraine threatened to block Russian oil and gas supplies to Europe in new sanctions against Vladimir Putin ’s government, which it blames for a separatist uprising that has ravaged the country’s east. Ukraine, which no longer receives any gas from Russia but acts as a conduit for its neighbor’s European customers, is considering a “complete or partial ban on the transit of all resources” across its territory, Prime Minister Arseniy Yatsenyuk told reporters today in Kiev. It may also ban Russian planes from its airspace and cut defense-industry cooperation. “There’s no doubt that Russia will continue its course — started a decade ago — aimed at banning imports of Ukrainian goods, limiting cooperation with Ukraine, pressure and blackmail,” Yatsenyuk said. “In the most negative scenario for Ukraine, losses during the first year may reach $7 billion, not only because of sanctions but also because of the Kremlin’s aggressive policy.” […]

Posted On : Published By : Tom Whipple
Category:

Exxon Drilling Russian Arctic Shows Sanction Lack Bite

Sanctions, what sanctions? Exxon Mobil Corp. will start drilling a $700 million well in the Arctic Ocean tomorrow, Russia’s government said, showing that for all the talk of action against Vladimir Putin ’s oil industry, the largest U.S. energy company is undeterred. As Russia’s relations with Europe and the U.S. deteriorated to the lowest point since the Cold war over the conflict in Ukraine, the European Union imposed a third round of sanctions last week, restricting the export of equipment used for offshore oil production. That doesn’t affect Exxon’s plans because the contract to hire the rig was signed before the measures were announced. Developing the Arctic is vital for Russia, where energy provides half the state’s revenue, to maintain oil production near a post-Soviet high of more than 10 million barrels a day. For Exxon, where output fell to a five-year low in the second quarter, a discovery […]

Posted On : Published By : Tom Whipple
Category:

Canada tightens sanctions noose on Russia

Canadian Prime Minister said new economic pressure on Russia targets technology used for oil exploration and extraction. Harper said he had grave concerns over Russia’s provocative military action in eastern Ukraine. Pro-Russian separatists there are suspected of playing a role in the downing of a Malaysia Airlines passenger jet last month, killing all 295 people on board. The prime minister said he was imposing a travel ban on 19 Russian and Ukrainian individuals and economic sanctions on close to two dozen Russian and Ukrainian groups. "We are also committed to imposing the necessary regulations to enact export restrictions on technologies used in Russia’s oil exploration and extraction sector," Harper said in a statement Wednesday. "Those will be implemented in parallel with our allies." Harper in July announced sanctions against 10 separate Russian entities, including Russian independent gas company Novatek and Gazprombank, the financial arm of Russian gas giant Gazprom. […]

Posted On : Published By : Tom Whipple
Category:

Japan hits Russia with more sanctions

The Japanese government said Tuesday it enacted sanctions on dozens of entities in response to Russia’s actions in eastern Ukraine. Tokyo said it was imposing additional sanctions on Russia for violating Ukraine’s sovereignty through the continued support of separatists in the east of the country. Rebels there are suspected in the downing of Malaysia Airlines Flight 17 last month, which left all 295 people on board dead. The list of those sanctioned include dozens of high-ranking officials in Crimea as well as Crimean oil and gas company Chernomorneftegaz. Tokyo’s sanctions follow similar actions by the U.S. and European governments targeting Russia’s energy sector. When Canadian Prime Minister Stephen Harper unveiled his list of sanctions against Russia, he sad it was in response to Russia’s occupation of the Crimean region in Ukraine and its military action in eastern Ukraine. Japan receives Russian oil through the 2,900-mile Eastern […]

Posted On : Published By : Tom Whipple
Category:

Russia troops build up on Ukraine border

A Ukrainian serviceman checks cars driving away from Donetsk near the village of Maryinka, a suburb of Donetsk in eastern Ukraine, on August 5, 2014. Terrified residents on August 5 fled the besieged rebel bastion of Donetsk in eastern Ukraine along a perilous humanitarian corridor, as government forces pushed their offensive to the outskirts of the city. AFP PHOTO / ANDREY KRASNOSCHEKOVAndrey Krasnoschekov/AFP/Getty Images Russia has sharply increased the number of troops and vehicles positioned on the eastern border of Ukraine in the past few days, raising fears of an invasion to stop the Ukrainian army’s recent advances against pro-Russian separatists. Moscow has around 20,000 troops deployed in battle-ready formations on the border, according to senior Nato military officers – significantly more than the 15,000 US officials said were deployed there last week. More On this story On this topic IN Europe While the number is still well below […]

Posted On : Published By : Tom Whipple
Category:

Defiant Putin Readies Retaliation Against Western Sanctions Over Ukraine

Dozens of Ukrainian soldiers who had crossed the border into Russia on Monday returned to Ukraine, after both Ukrainian and Russian officials gave conflicting explanations of why the Ukrainian soldiers had entered Russia. WSJ’s Niki Blasina reports. (Photo: AP) Russian President Vladimir Putin said he has ordered his government to prepare retaliatory measures against U.S. and European sanctions imposed on Russia last week, as the Kremlin stepped up pressure on Ukraine. Mr. Putin has shown no outward sign of buckling under the weight of sanctions—the harshest yet imposed by Brussels and Washington—aimed at getting him to stop supporting pro-Russia rebels across the border in Ukraine. The Russian Foreign MInistry described eastern Ukraine as on the verge of a "humanitarian catastrophe" and said Tuesday it would push for an international mission to help masses of civilians fleeing the fighting. At Russia’s request, the United Nations Security Council met for a […]

Posted On : Published By : Tom Whipple
Category:

Ukraine’s army positioning to move on rebels in Donetsk

A pro-Russian separatist guards a checkpoint near the Ukrainian village of Rozsypne in the Donetsk region Monday. The Ukrainian government appeared to be readying an assault on Donetsk, which is held by separatists. (Sergei Karpukhin/Reuters) KIEV, Ukraine — The Ukrainian military on Monday appeared to be readying a long-awaited major assault on the rebel stronghold of Donetsk, warning civilians to leave as troops tightened their ring around the city amid heavy fighting. Extra evacuation corridors were set up for cars bearing white flags, said Andriy Lysenko, a military spokesman. The Donetsk city government posted the corridor routes on its Web page and noted: “As practice shows, such messages are distributed before the start of active combat operations.” Lysenko also announced that troops had taken the town of Yasynuvata, home to a key railway control center between Donetsk and Luhansk. The military has almost encircled the two large cities, where […]

Posted On : Published By : Tom Whipple
Category:

Buildup Makes Russia Battle-Ready for Ukraine

WASHINGTON — Russia has roughly doubled the number of its battalions near the Ukrainian border, Western officials said Monday, and could respond to the Kiev government’s gains there by launching a cross-border incursion with little or no warning. Over the past several weeks, Russia has built up 17 battalions — totaling 19,000 to 21,000 troops, according to one Western estimate — into a battle-ready force of infantry, armor, artillery and air defense within a few miles of the border. In addition, it has vastly expanded its firepower, increasing the number of advanced surface-to-air missile units to 14 from eight, and deploying more than 30 artillery batteries, according to the officials. The Kremlin’s intentions in increasing its military abilities remain unclear. President Vladimir V. Putin of Russia could be seeking to pressure Ukraine and the United States to agree to a political settlement that would grant the eastern provinces of […]

Posted On : Published By : Tom Whipple
Category:

Germany cancels defence contract with Russia

The Vladivostok warship, a Mistral class…The Vladivostok warship, a Mistral class LHD amphibious vessel ordered by Russia to the STX France shipyard in Saint-Nazaire, western France, leaves for her first trial on March 5, 2014. The Vladivostok warship is one of two navy ships ordered from France by the Russian army and it will take part in a sea trial. AFP PHOTO / FRANK PERRYFRANK PERRY/AFP/Getty Images France is coming under further pressure to cancel its contract with Russia for three Mistral war ships Germany on Monday cancelled a contract to supply Russia with a €120m combat simulation centre, amid an escalating row among European partners about arms sales to Moscow, including France’s €1.2bn warship contract. In Russia the decision by Germany to withdraw authorisation for the three-year contract is expected to accelerate moves to cut dependence on imported military technology, which have already been boosted by last week’s […]

Posted On : Published By : Tom Whipple
Category:

Shale work in Ukraine on hold, Shell says

Operations in shale acreage in eastern Ukraine can no longer continue as planned, the chief executive officer at Royal Dutch Shell said. Shell released strong earnings for second quarter 2014. In a conference call to explain the report, CEO Ben van Beurden said some of the company’s operations in Europe may be influenced by ongoing crises in Ukraine. The European community is trying to diversify an energy sector influenced heavily by Russia. The European market gets about a quarter of its gas needs met by Russia, though most of that runs through the Soviet-era gas transit network in Ukraine. Russia’s role in conflict in eastern Ukraine prompted Western powers to issue harsh sanctions against the Kremlin. Van Beurden said his company wasn’t as vulnerable to those sanctions as other companies, but said the sanctions pressure had changed the game in terms of an investment perspective. In Ukraine itself, the […]

Posted On : Published By : Tom Whipple
Category:

Energy Companies Rethinking Russia After New Round of Sanctions

The downing of Malaysia Airlines Flight 17 over eastern Ukraine — and the tougher round of sanctions against Russia that followed — is prompting some big multinational energy companies to take a fresh look at the ramifications of the crisis. For months, American and European energy players have continued to sign deals with Russia, maintaining a posture that business was proceeding as usual. But top industry executives are now starting to acknowledge that the escalating tensions could sharply hurt Western oil and gas giants with major investments in Russia, as well as the service companies that are key technology suppliers. “We are in the heat of a very emotional stage,” Robert W. Dudley, BP’s chief executive, told reporters on Tuesday. The company warned that further economic sanctions could harm BP’s income, production and reputation. France’s oil giant, Total, which had been among the most committed to Russia, […]

Posted On : Published By : Tom Whipple
Category:

Merkel rethink on sanctions reflects loss of trust in Putin

epaselect epa04241887 German Chancellor Angela Merkel (L) meets with Russian President Vladimir Putin (R) in Deauville, Normandy, France, 06 June 2014. Merkel met with Putin for bilateral talks before the ceremony to mark the 70th anniversary of D-Day landing of Allied forces in France. D-Day marked the beginning of the advance into Europe which led to the defeat of Nazi Germany. EPA/MICHAEL KAPPELER Hours after Malaysia Airlines flight MH17 crashed in a field in eastern Ukraine, killing 298 people and igniting a geopolitical crisis, Angela Merkel reacted to the news with the same quality that has characterised much of her political life: caution. It was “too early” to discuss new sanctions against Moscow, the German chancellor said, even as claims were already surfacing that Russia-backed separatists had shot down the plane. More On this story On this topic IN Europe “These events have once again shown us that what […]

Posted On : Published By : Tom Whipple
Category:

U.S. and European companies are girding for the possible impact of

U.S. and European companies are girding for the possible impact of tougher international sanctions against Moscow , with auto makers and energy giants moving to limit the Russian risks to their businesses. French oil company Total SA said Wednesday that it has stopped increasing its stake in Russia’s second-largest natural-gas producer, OAO Novatek , and will discuss the sanctions with its partners in Russian projects. A factory of Russian titanium-manufacturing company VSMPO-Avisma. Reuters "Russia is a great oil-and-gas country and we’ll have to wait and see the nature of these new sanctions first," Total Chief Financial Officer Patrick de la Chevardière told reporters during a conference call. The European Union and the U.S. on Tuesday adopted sweeping economic sanctions against Russia, targeting for the first time sectors including Russia’s state-controlled banks and oil industry. The stronger sanctions have been driven by public outrage and Kremlin recalcitrance in the aftermath […]

Posted On : Published By : Tom Whipple
Category:

EU Aims at Russian Banks, Technology in Widest Sanctions Yet

The European Union curbed Russia’s access to bank financing and advanced technology in its widest-ranging sanctions yet over President Vladimir Putin ’s backing of the rebellion in eastern Ukraine. EU governments agreed today in Brussels to bar Russian state-owned banks from selling shares or bonds in Europe and restricted the export of equipment to modernize the oil industry, a key prop for Russia’s economy, two EU officials told reporters. New contracts to sell arms to Russia and the export of machinery, electronics and other civilian products with military uses will also be banned. “The political implications of the escalation in tensions are likely to cast a further chill over relations between Russia and the West,” Citigroup Inc. analysts including Eric Lee and Tina Fordham said in a note to clients before the EU decision. “Economic costs are starting to bite, but it could be a while before the economic […]

Posted On : Published By : Tom Whipple
Category:

EU and U.S. announce new sanctions on Russia over Ukraine

The European Union and the United States on Tuesday announced further sanctions against Russia, targeting its energy, banking and defense sectors in the strongest international action yet over Moscow’s support for rebels in eastern Ukraine. The measures mark the start of a new phase in the biggest confrontation between Moscow and the West since the Cold War, which worsened dramatically after the downing of Malaysian flight MH17 over rebel-held territory on July 17 by what Western countries say was a Russian-supplied missile. "If Russia continues on this current path, the costs on Russia will continue to grow," President Barack Obama said in Washington. "Russia’s actions in Ukraine and the sanctions that we’ve already imposed have made a weak Russian economy even weaker," he said. In Brussels, diplomats said ambassadors from the 28-member European bloc agreed to restrictions on trade of equipment for the oil and defense […]

Posted On : Published By : Tom Whipple
Category:

Siemens to BP Prepare for Downward Russia Business Spiral

BP Plc , Siemens AG and Renault SA are among European companies preparing for a downward turn in their Russian business following the European Union’s decision to impose its widest-ranging sanctions yet over President Vladimir Putin ’s involvement in eastern Ukraine. EU leaders announced plans yesterday to restrict the export to Russia of equipment to modernize the oil industry and forbid the sale of machinery, electronics and other civilian products with potential military uses. New arms contracts with Russia are also not allowed. The sanctions will have a direct impact on companies like Siemens, which may no longer be able to sell oil equipment to Russia, and an indirect effect on many others like Renault, which expects the country’s auto market to contract more than 10 percent in 2014 as consumers hold back purchases. BP, owner of 20 percent of state-backed OAO Rosneft , yesterday warned of risks to […]

Posted On : Published By : Tom Whipple
Category:

Russia's central bank supports sanctions targets

Russia’s central bank promised to support financial institutions hit by U.S. sanctions as stocks took a tumble in Moscow on Wednesday. In an online statement, the bank promised to "take adequate measures" to support targeted institutions. Russia’s state-owned VTB bank – Russia’s second-largest – was down 0.5 percent on Wednesday morning. Other major banks that were left unscathed by sanctions – such as the country’s largest, Sberbank – were trading higher. Russia’s MICEX benchmark index added 2.3 percent from its previous closing. U.S. officials said Tuesday that roughly 30 percent of Russia’s banking sector assets are now constrained by sanctions. The move comes after Malaysia Airlines Flight 17 was shot down over eastern Ukraine. Western officials accuse pro-Russian separatists of bringing down the plane with a missile supplied by Moscow. The West also halted future sales to lucrative Russian economic sectors, with the U.S. announcing plans […]

Posted On : Published By : Tom Whipple
Category:

Russia’s central bank supports sanctions targets

Russia’s central bank promised to support financial institutions hit by U.S. sanctions as stocks took a tumble in Moscow on Wednesday. In an online statement, the bank promised to "take adequate measures" to support targeted institutions. Russia’s state-owned VTB bank – Russia’s second-largest – was down 0.5 percent on Wednesday morning. Other major banks that were left unscathed by sanctions – such as the country’s largest, Sberbank – were trading higher. Russia’s MICEX benchmark index added 2.3 percent from its previous closing. U.S. officials said Tuesday that roughly 30 percent of Russia’s banking sector assets are now constrained by sanctions. The move comes after Malaysia Airlines Flight 17 was shot down over eastern Ukraine. Western officials accuse pro-Russian separatists of bringing down the plane with a missile supplied by Moscow. The West also halted future sales to lucrative Russian economic sectors, with the U.S. announcing plans […]

Posted On : Published By : Tom Whipple
Category:

BP frets over 'strategic objectives in Russia'

British energy company BP said Tuesday its second quarter profits soared, but any additional sanctions could impact "strategic objectives in Russia." BP reported second quarter replacement cost profits, a measure that eliminates oil price volatility, at $3.2 billion, up 34 percent from the same period in 2013. BP Chief Executive Bob Dudley said in a statement cash flow during the second quarter was "robust." The company attributed its strong second quarter to upstream operations in the Gulf of Mexico and overhauls at its refinery in Whiting, Indiana. Elsewhere, the company said sanctions on the Russian energy sector, particularly oil company Rosneft, could impact business operations in Russia. "Any future erosion of our relationship with Rosneft, or the impact of further economic sanctions, could adversely impact our business and strategic objectives in Russia, the level of our income, production and reserves, our investment in Rosneft and our reputation," the company […]

Posted On : Published By : Tom Whipple
Category:

BP frets over ‘strategic objectives in Russia’

British energy company BP said Tuesday its second quarter profits soared, but any additional sanctions could impact "strategic objectives in Russia." BP reported second quarter replacement cost profits, a measure that eliminates oil price volatility, at $3.2 billion, up 34 percent from the same period in 2013. BP Chief Executive Bob Dudley said in a statement cash flow during the second quarter was "robust." The company attributed its strong second quarter to upstream operations in the Gulf of Mexico and overhauls at its refinery in Whiting, Indiana. Elsewhere, the company said sanctions on the Russian energy sector, particularly oil company Rosneft, could impact business operations in Russia. "Any future erosion of our relationship with Rosneft, or the impact of further economic sanctions, could adversely impact our business and strategic objectives in Russia, the level of our income, production and reserves, our investment in Rosneft and our reputation," the company […]

Posted On : Published By : Tom Whipple
Category:

U.S., EU Ready New Sanctions as Russia Prepares Response

The U.S. and the European Union may move as soon as today to impose tougher sanctions on Russia as Vladimir Putin ’s government formulates its response to the growing international pressure. The sanctions target “key sectors” of Russia’s economy — finance, defense and energy — and are being imposed in the face of Putin “doubling down” in support of separatists battling Ukrainian troops, U.S. Deputy National Security Adviser Tony Blinken said yesterday. EU governments agreed yesterday to impose travel bans and asset freezes on Putin’s “cronies.” “The longer this goes on, there is the risk of further outrageous actions by the separatists or by Russia that deepen the international crisis,” Blinken said. “So there’s a need to take further action now to convince Russia to change course.” ‘Concrete Steps’ Russia hasn’t effectively put pressure on the separatists to force them to negotiate and hasn’t taken the “concrete steps” asked […]

Posted On : Published By : Tom Whipple
Category:

Europe leans on Ukrainian energy company

A European energy administration agency said Monday the Ukrainian government needs to examine its contractual relationship with Russian energy company Gazprom. The European Energy Secretariat sent a letter to Ukrainian Energy Minister Yuri Prodan calling for an assessment of the contract between Ukrainian energy company Naftogaz and Gazprom. Parts of the contract, including the take-or-pay clause requiring Naftogaz to pay for a pre-determined volume of gas, serves to "prevent, restrict and distort competition on the natural gas market in Ukraine and affect trade in natural gas within the [European] energy community," the secretariat said in a statement . Gazprom in June switched Naftogaz over to the new payment scheme because of $4.45 billion in overdue bills. Russia supplies about a quarter of the European Union’s gas needs, though most of those supplies run through the Soviet-era transit network in Ukraine. Debt disputes in 2006 and 2009 prompted Gazprom to […]

Posted On : Published By : Tom Whipple
Category:

EU edges to economic sanctions on Russia but narrows scope

The European Union reached outline agreement on Friday to impose the first economic sanctions on Russia over its behavior in Ukraine but scaled back their scope to exclude technology for the crucial gas sector. The sanctions on access to capital markets, arms and hi-tech goods are also likely to apply only to future contracts, leaving France free to go ahead with the controversial delivery of Mistral helicopter carriers being built for Russia. After months of hesitation, the 28-nation EU toughened its stance toward Moscow after last week’s downing of a Malaysian airliner, killing 298 people, in an area of eastern Ukraine held by Russian-backed separatists. But the narrowing of the proposed measures highlighted the difficulty of agreeing to tough sanctions among countries which have widely different economic interests and rely to varying degrees on Russian gas. After a discussion that lasted all day Thursday and part […]

Posted On : Published By : Tom Whipple
Category:

Russian execs fear lasting damage from plane crash

MOSCOW (AP) — Having for months dismissed Western sanctions on Russia as toothless, business leaders here are now afraid that the downing of the Malaysian jetliner will bring about an international isolation that will cause serious and lasting economic damage. Throughout the Ukrainian crisis, U.S. and European sanctions had mainly targeted a handful of individuals, sparing economic ties. Then last week the U.S. imposed penalties on some of Russia’s largest corporations. And when the airliner was shot down just a day later in Ukraine, allegedly by separatists with Moscow’s support, concern grew in Russia that the sanctions would only get worse as President Vladimir Putin shows little sign of cooperation. Reinforcing those concerns, the European Union said Friday it is planning newer, tougher penalties on businesses. "Over the past few months, there was a sense that Mr. Putin acted decisively, forcefully, and correctly, and that everybody else in the […]

Posted On : Published By : Tom Whipple
Category:

Canada sanctions Russian energy sector

Canadian Prime Minister announced new sanctions targeting the Russian energy sector in response to the Kremlin’s pressure on Ukraine. Harper announced sanctions against 10 separate Russian entities, including Russian independent gas company Novatek and Gazprombank, the financial arm of Russian gas giant Gazprom. The prime minister said the sanctions were meant as a response to Russia’s occupation of the Crimean region in Ukraine and its military action in eastern Ukraine. "The measures we are announcing include sanctions against a broad range of entities from Russia’s arms industry, as well as from its financial and energy sectors," he said Thursday. Novatek was included in a list of sanctioned entities outlined by the U.S. government in mid July. In a statement issued in response, Novatek said its financial situation is stable and cash flows are sufficient. Harper’s administration didn’t extend sanctions to Russian oil company Rosneft. Rosneft in […]

Posted On : Published By : Tom Whipple
Category:

Ukrainian gas situation 'normal'

Slovakian gas transit company Eustream said Friday the state of operations through Ukraine were in line with its expectations. The company said it hasn’t seen any pressure reductions or gas volume decreases at a compressor station on the border with Ukraine. "Gas flow from Ukraine is in normal mode," it said in a statement . European countries get about a quarter of their gas needs met by Russia, though most of that gas runs through Ukrainian pipelines built during the Soviet era. Ongoing crises in Ukraine is therefore putting European energy security at risk. Last month, the European Investment Bank said it was lending $132 million to Polish natural gas transmission company Gaz-System for the expansion of a pipeline that could bring gas, including domestically sourced liquefied natural gas, to the border of the Czech Republic, Slovakia and Ukraine Eustream said Thursday it was proceeding with […]

Posted On : Published By : Tom Whipple
Category:

Ukrainian gas situation ‘normal’

Slovakian gas transit company Eustream said Friday the state of operations through Ukraine were in line with its expectations. The company said it hasn’t seen any pressure reductions or gas volume decreases at a compressor station on the border with Ukraine. "Gas flow from Ukraine is in normal mode," it said in a statement . European countries get about a quarter of their gas needs met by Russia, though most of that gas runs through Ukrainian pipelines built during the Soviet era. Ongoing crises in Ukraine is therefore putting European energy security at risk. Last month, the European Investment Bank said it was lending $132 million to Polish natural gas transmission company Gaz-System for the expansion of a pipeline that could bring gas, including domestically sourced liquefied natural gas, to the border of the Czech Republic, Slovakia and Ukraine Eustream said Thursday it was proceeding with […]

Posted On : Published By : Tom Whipple
Category:

Russia Steps Up Help for Rebels in Ukraine War

Rather than backing down after last week’s downing of a civilian passenger jet, Russia appears to be intervening more aggressively in the war in eastern Ukraine in what American and Ukrainian officials call a dangerous escalation that will almost certainly force more robust retaliation from the United States and Europe. Russia has increased its direct involvement in fighting between the Ukrainian military and separatist insurgents, moving more of its own troops to the border and preparing to arm the rebels with ever more potent weapons, including high-powered Tornado rocket launchers, American and Ukrainian officials said on Friday. The officials, citing satellite images and other military intelligence, said that Russia had positioned heavy weapons, including tanks and other combat vehicles, at several points along the border where there has been intense fighting. On Thursday, Russia unleashed artillery attacks on eastern Ukraine from Russian territory, officials in Washington […]

Posted On : Published By : Tom Whipple
Category:

Senate leaders want more Russian sanctions

In light of Russia’s stance on the crash of the Malaysia Airlines plane, three U.S. Senators said broader sanctions on Russia’s energy sector are warranted. U.S. Secretary of State John Kerry said there was a growing body of evidence to suggest Russia may be tied to the downing of Malaysia Airlines Flight 17 last week. The passenger jet crashed near the eastern Ukrainian border with Russia, an area of operations for pro-Russian separatists. U.S. Sens. Bob Menendez , D-N.J., chairman of the Senate Foreign Relations Committee, Dianne Feinstein , D-Calif., chairwoman of the Senate Select Committee on Intelligence and Carl Levin , D-Mich., chairman of the Senate Armed Services Committee called on President Barack Obama to take a tough stance on Russia in light of the tragedy. "We write to express our outrage over the wanton destruction of Malaysia Airlines Flight MH17, and to ask that you consider imposing […]

Posted On : Published By : Tom Whipple
Category:

Ukraine crisis: EU to weigh far-reaching sanctions on Russia

Russia’s President Vladimir Putin attends a meeting in his Novo-Ogaryovo residence outside Moscow, on March 27, 2014.Putin said today Russia should create its own national payment settlement system, in a bid to reduce economic dependence on the West amid the controversy over Moscow’s seizure of Crimea. AFP PHOTO / RIA-NOVOSTI / POOL/ ALEXEI NIKOLSKY (Photo credit should read ALEXEI NIKOLSKY/AFP/Getty Images) EU diplomats will weigh sweeping Russian sanctions on Thursday that include a proposal to ban all Europeans from purchasing any new debt or stock issued by Russia’s largest banks, according to a proposal seen by the Financial Times. The sanctions measure, contained in a 10-page options memo prepared by the European Commission and distributed to national capitals, also proposes barring the Russian banks from listing new issues on European exchanges, preventing them from using London or other EU stock markets to raise funds from non-Europeans. More On this […]

Posted On : Published By : Tom Whipple
Category:

Russia’s Message on Jet: Conciliation and Bluster

Russia presented a combination of conciliation and bluster on Monday over its handling of the downed Malaysia Airlines jet, with President Vladimir V. Putin seemingly probing for a way out of the crisis without appearing to compromise with the West. On one hand, he offered conciliatory words in a video statement , oddly released in the middle of the night, while the separatists allied with Moscow in southeastern Ukraine released the bodies of the victims and turned over the black box flight recorders from the doomed aircraft to Malaysian officials. However, two senior military officers forcefully demanded that the United States show publicly any proof that rebels fired the fatal missile, and again suggested that the Ukrainian military shot down the Malaysia Airlines jet despite the fact that Ukraine has not used antiaircraft weapons in the fight along its eastern border. Mr. Putin seemed to respond to […]

Posted On : Published By : Tom Whipple
Category:

West Raises Pressure on Russia in Downing of Malaysia Airlines Flight 17

The U.S. accused Russia of hiding evidence after the downing of Flight 17 and cited video posted on social media. An image from footage released by the Ukrainian Interior Ministry purports to show a truck carrying a missile system out of Ukraine toward Russia. Associated Press The U.S. leveled its most-explicit allegations yet of Russia’s involvement in the downing of Malaysia Airlines Flight 17 and subsequent efforts to conceal evidence, and European leaders threatened broad new sanctions against Moscow, marking a turning point in the standoff between the West and the Kremlin. Secretary of State John Kerry on Sunday warned Russian President Vladimir Putin "for the last time" to accede to Western demands to disarm pro-Russian separatists and stabilize Ukraine. (Follow the latest updates on the Malaysia Airlines crash in Ukraine.) Officials in Europe, meanwhile, departed from their initially muted reaction as anger grew across the continent over the […]

Posted On : Published By : Tom Whipple
Category:

Ukraine’s gas sector coping, EU says

Some of the proposals offered to break the Russian grip on the Ukrainian energy sector are working, a top European official said Thursday in Brussels. Outgoing European Commission President Jose Manuel Barroso updated leaders in Brussels on the status of trilateral negotiations between the European Union, Russia and Ukraine. Simmering conflict in Ukraine, a former Soviet republic, grew out of its late 2013 decision to look beyond the Russian sphere of influence. Ukraine earlier this year signed an association agreement with the European Union. Beyond strategic areas, Barroso said energy supply to Ukraine is an area of concern. Russia suspended gas deliveries to Ukraine because of debt woes and similar rows in 2006 and 2009 left downstream European consumers in the cold. At this stage, the president said, Ukraine is meeting its energy needs with domestic sources and alternative suppliers. Some of its neighbors have reversed gas flows toward […]

Posted On : Published By : Tom Whipple
Category:

Ukraine's gas sector coping, EU says

Some of the proposals offered to break the Russian grip on the Ukrainian energy sector are working, a top European official said Thursday in Brussels. Outgoing European Commission President Jose Manuel Barroso updated leaders in Brussels on the status of trilateral negotiations between the European Union, Russia and Ukraine. Simmering conflict in Ukraine, a former Soviet republic, grew out of its late 2013 decision to look beyond the Russian sphere of influence. Ukraine earlier this year signed an association agreement with the European Union. Beyond strategic areas, Barroso said energy supply to Ukraine is an area of concern. Russia suspended gas deliveries to Ukraine because of debt woes and similar rows in 2006 and 2009 left downstream European consumers in the cold. At this stage, the president said, Ukraine is meeting its energy needs with domestic sources and alternative suppliers. Some of its neighbors have reversed gas flows toward […]

Posted On : Published By : Tom Whipple
Category:

U.S. slaps toughest sanctions yet on Russia, targets Putin allies

President Barack Obama imposed the toughest U.S. sanctions yet on Russia, striking at the heart of Vladimir Putin’s powerbase by targeting companies closest to him over what Washington says is Moscow’s failure to curb violence in Ukraine. By imposing penalties on Russia’s largest oil producer Rosneft, its second largest gas producer Novatek and its third largest bank Gazprombank, Washington targeted Putin’s allies, many of whom have become wealthy during his tenure. The sanctions, which in effect close medium- and long-term dollar funding, were also put on Vnesheconombank, VEB, a state-owned bank that acts as payment agent for the government, and eight arms firms, including the producer of the Kalashnikov assault rifle. The sanctions did not freeze those four companies’ assets, or stop U.S. firms from doing business with them and several were quick to say it was business as usual. But Russia’s rouble-traded stock market and […]

Posted On : Published By : Tom Whipple
Category:

U.S., EU Escalate Russia Sanctions as Putin Holds Firm

The U.S. and the European Union imposed the most aggressive sanctions to date on Russian business and said more may follow, acting after weeks of threats to squeeze the $2 trillion economy over the confrontation in Ukraine. The benchmark Micex index dropped 1.9 percent as of 10:54 a.m. today in Moscow to the lowest since May 30 and the ruble slid 0.7 percent against the central bank’s basket of currencies after the Obama administration unveiled the sanctions. Targeted companies include OAO Rosneft (ROSN) , Russia’s largest oil company, natural gas producer OAO Novatek (NVTK) , OAO Gazprombank, the country’s third-largest lender, and eight defense firms. EU leaders agreed to blacklist companies and halt lending to public-sector projects in Russia. “These sanctions are significant,” U.S. President Barack Obama said yesterday at the White House. “But they are also targeted, designed to have maximum impact on Russia while limiting any spillover […]

Posted On : Published By : Tom Whipple
Category:

Russia warns Ukraine of ‘irreversible consequences’ after cross-border shelling

Russia is warning Ukraine of “irreversible consequences” after cross-border shelling from the battle-worn east struck Russian territory Sunday, reportedly killing one Russian citizen and injuring two others. “This incident highlights the extremely dangerous escalation of tensions in the Russian-Ukrainian border and may have irreversible consequences, the responsibility for which lies on the Ukrainian side,” Russia’s Foreign Ministry said in a statement Sunday, calling the incident an “aggressive action.” Russian officials summoned the Ukrainian charge d’affaires to the foreign ministry in Moscow to protest the civilian’s death, which they say occurred when the Ukrainian army shot mine shells from the Donetsk area into Russia’s Rostov region on the other side of the border, hitting a residential building. Ukrainian officials vehemently deny they have fired on Russian territory, and are questioning whether Russia is making up details surrounding the incident simply to build a case against Ukraine’s military. “Forces of […]

Posted On : Published By : Tom Whipple
Category:

Pro-Russian Rebels in Ukraine Match Government Cease-Fire

Pro-Russian separatists declared a cease-fire Monday in a surprise move that they said they hoped would lead to a settlement of the conflict in eastern Ukraine. The announcement came as rebel leaders met with representatives of the Ukrainian government in Kiev, including the former president, Leonid D. Kuchma, as well as the Russian ambassador to Ukraine and a representative of the acting chairman of the Organization for Security and Cooperation in Europe. “In answer to the cease-fire by Kiev, we commit to a cease-fire from our side,” said Aleksandr Borodai, the prime minister of the self-declared Donetsk People’s Republic. Mr. Borodai, a Russian citizen, said the cease-fire would last until Friday, matching the timeline of the cease-fire announced last week by the new Ukraine president, Petro O. Poroshenko. “We also hope that in the time of this bilateral cease-fire,” Mr. Borodai continued, “we can agree to […]

Posted On : Published By : Tom Whipple
Category:

Breakaway regions agree to observe Ukrainian ceasefire

A pro-Russian rebel leader in Ukraine’s breakaway east said Monday that separatist groups would observe a weeklong ceasefire, a move that raises hope of a breakthrough in the crisis but could nonetheless be undone by fighting on the ground. Alexander Borodai, the self-proclaimed prime minister of the so-called Donetsk People’s Republic, said rebels would lay down their arms in line with a  cease-fire declared Friday by the Ukrainian President Petro Poroshenko. "The consultation ended with authorities of the Luhansk and Donetsk Republics agreeing to maintain a ceasefire for their part until the 27th," Borodai said, following the first face-to-face meeting between separatists and intermediaries from the Ukrainian and Russian governments. It comes despite claims from both sides of numerous violations of the proposed ceasefire over the weekend and amid ongoing skepticism over the chances of a more permanent peace. Borodai’s comments came after Monday’s meeting in Donetsk attended by, […]

Posted On : Published By : Tom Whipple
Category:

No gas siphoning found, Moscow says

There’s no evidence to suggest Russian natural gas bound for Europe was siphoned off during transit through Ukraine, the Russian Energy Ministry said Monday. "According to [the gas meters], there has not been any siphoning off of Russian gas in Ukraine," a ministry spokesman told state news agency RIA Novosti. The Soviet-era gas transmission network in Ukraine carries more than half of the Russian natural gas bound for the European market. Russian energy company Gazprom last week said it would deliver gas to its Ukrainian counterparts only if paid in advance. Gazprom switched to the pre-payment mechanism saying it was frustrated with the $4 billion debt for gas from Ukraine. Gazprom CEO Alexei Miller said last week Ukraine would siphon off the gas for free unless it secured a substantial discount. "Ukraine will not pay off its gas debt, will take our gas for free in […]

Posted On : Published By : Tom Whipple
Category:

Ukraine Says Rebels Ignoring Unilateral Cease-Fire

Ukrainian authorities on Monday accused pro-Russia separatists in the east of blatantly disregarding a unilateral cease-fire declared by Kiev on Friday and continuing attacks on government forces. The charge comes a day after Russian President Vladimir Putin called for Kiev to hold unconditional talks with rebel leaders , saying it was the only way that a peace plan offered by Ukrainian President Petro Poroshenko could be successful. Mr. Poroshenko has said he is willing to talk with anyone who has opposed the government except for those with "blood on their hands." "In response to this offer of peace, the militants and terrorists have continued their armed attacks, blatantly violating the truce," Ukraine’s defense ministry said in a statement. Western leaders are threatening broader sanctions against Russia if Mr. Putin doesn’t move to stop the separatists from fighting and secure stretches of the border under rebel control. Kiev has accused […]

Posted On : Published By : Tom Whipple
Category:

No political games with energy, Moscow says

Russian Energy Minister Alexander Novak said using energy for geopolitical gain leads to market instability and a poor investment climate. Novak told delegates gathered in Moscow for the World Petroleum Congress the Kremlin isn’t trying to dominate global energy markets for political gain. "We are focused on fundamental market mechanisms," he said in his Thursday address . "Using energy as a tool to achieve geopolitical goals leads to increased instability and worsening of the investment climate in the energy sector, with end users paying for this." Russian energy company Gazprom this week said it would sell future natural gas supplies to Ukraine only with advance payment . Europe gets about a quarter of its gas from Russia, though most of those supplies run through Ukraine’s pipeline system. Europe has looked for alternate gas supplies to break the Russian grip on the region’s energy sector. European Energy […]

Posted On : Published By : Tom Whipple
Category:

Putin orders forces in the Urals on combat alert

MOSCOW (AP) — Russian President Vladimir Putin on Saturday ordered military forces in central Russia on combat alert as well as a drill of airborne troops, a day after Ukraine ordered a cease-fire with pro-Russian rebels. NATO said earlier this week that Russia has resumed a military build-up on the border with Ukraine where pro-Russian separatists have been fighting government forces for weeks in a conflict that has left about 300 people dead and displaced over 34,000. Ukrainian President Petro Poroshenko ordered his forces to cease fire Friday and halt military operations for a week, the first step in a peace plan he hopes will end the fighting that has killed hundreds. The Kremlin dismissed the plan, saying it sounded like an ultimatum and lacked any firm offer to open talks with insurgents. The combat alert in the central military district, which encompasses the Volga region and the Ural […]

Posted On : Published By : Tom Whipple
Category:

As Military and Rebels Clash in Ukraine, Doubt Falls on Cease-Fire Prospects

Fierce fighting raged here on Thursday between the Ukrainian military and pro-Russian separatist rebels, with hours of intense shelling casting grave doubts on the prospects of a unilateral cease-fire that was promised just a day earlier by the new Ukrainian president, Petro O. Poroshenko. As government forces intensified their drive to crush the separatist insurrection that has plunged Ukraine into conflict, explosions rocked villages between Seversk and Krasny Liman, a railroad hub north of the regional capital of Donetsk that could provide a lifeline to the blockaded rebel stronghold of Slavyansk. In another foreboding development, the NATO secretary general, Anders Fogh Rasmussen, said Thursday that Russia had redeployed several thousand troops along the Ukrainian border. A month ago, President Vladimir V. Putin had ordered soldiers withdrawn from the border area in what appeared to be an effort to defuse Ukraine’s crisis, along with statements that Russia […]

Posted On : Published By : Tom Whipple
Category:

Ukraine forces battle separatists after truce ‘refused’

Ukrainian troops and pro-Russian separatists were locked in fierce fighting in the east of Ukraine on Thursday after rebels rejected a call to lay down their arms in line with a peace plan proposed by President Petro Poroshenko, government forces said. Heavy fighting broke out at around 4 a.m. near the town of Krasny Liman, which itself has been under government control since early this month. "We issued an ultimatum to the terrorists overnight to surrender their weapons. We guarantee their safety and investigation in line with Ukrainian law … They refused," said government forces spokesman Vladyslav Seleznyov. "Now we are trying to narrow the encirclement. They are trying to break out," Seleznyov said. No details of the fighting were immediately available from the rebels side. Poroshenko, installed as a president on June 7, is pushing a peace plan to end the separatist rebellion including an […]

Posted On : Published By : Tom Whipple
Category:

Ukraine forces battle separatists after truce 'refused'

Ukrainian troops and pro-Russian separatists were locked in fierce fighting in the east of Ukraine on Thursday after rebels rejected a call to lay down their arms in line with a peace plan proposed by President Petro Poroshenko, government forces said. Heavy fighting broke out at around 4 a.m. near the town of Krasny Liman, which itself has been under government control since early this month. "We issued an ultimatum to the terrorists overnight to surrender their weapons. We guarantee their safety and investigation in line with Ukrainian law … They refused," said government forces spokesman Vladyslav Seleznyov. "Now we are trying to narrow the encirclement. They are trying to break out," Seleznyov said. No details of the fighting were immediately available from the rebels side. Poroshenko, installed as a president on June 7, is pushing a peace plan to end the separatist rebellion including an […]

Posted On : Published By : Tom Whipple
Category:

Rebels Reject Ukrainian Leader’s Cease-Fire Idea

After Ukraine’s new president, Petro O. Poroshenko, told reporters in Kiev on Wednesday that he might soon order a temporary, unilateral cease-fire as part of a broader 14-point peace plan, it took all of several seconds for pro-Russian militants to rule it out. “I am a condemned man,” said a stick-thin fighter who, like many others here, identified himself only by an alias, Tarik, for security reasons. Sipping tea in the gloom of the lobby of Donetsk’s rebel-occupied administration building on Wednesday afternoon, he patted the magazine of the automatic rifle slung across his chest. Any cease-fire would certainly be violated by the Ukrainian Army, he said, adding that he and other pro-Russian separatists would be arrested the minute the government had the opportunity. “What peace can they possibly offer me?” he asked. “If they want peace, then they can leave.” Tarik and a dozen other […]

Posted On : Published By : Tom Whipple
Category:

The Third Russia-Ukraine Gas War

At 10 am on Monday, June 16, 2014, Gazprom, a Russian gas monopoly, cut off supplies of gas to Ukraine. This is the third time in the last ten years when Gazprom has tried to use a cut-off to force the Ukrainian government to accept a deal it did not want to accept. In the previous two cut-offs —in January 2004 and January 2009, that is, in the middle of bitter cold winters—Ukraine bowed to the pressure and agreed to unfavorable contracts with high prices, tough clauses, and heavy penalties. Each time, Russia used Gazprom and energy prices as a political instrument to pressure pro-Western governments in Ukraine. Although the current cut-off is motivated by the same political factors, the outcome could be different this time. In a nutshell, Gazprom wants to sell gas to Ukraine at $485 per thousand of cubic meters. Ukraine insists on the price of […]

Posted On : Published By : Tom Whipple
Category:

Gas Siphoning Seen Unlikely in Ukraine Seeking EU Ties

Ukraine seeking closer ties to the European Union means natural gas flows from Russia to the 28-nation bloc are unlikely to be disrupted, according to Maplecroft Ltd. and Energy Aspects Ltd. UkrTransGas is shipping full volumes from Russia to Europe, the Ukrainian pipeline operator said yesterday, one day after its own supply was cut by Russia amid a two-month long pricing dispute. All imports needed to meet domestic needs can be replaced with gas from Europe for now, Naftogaz Ukrainy’s Chief Executive Officer Andriy Kobolyev said. Russia’s OAO Gazprom (GAZP) cut supplies after a payment deadline expired, echoing disputes that disrupted flows in 2006 and 2009, when the state-run company accused Ukraine of siphoning off transit gas, a charge it denied. Ukraine, which carries Russian gas meeting about 15 percent of the European Union’s needs, is seeking closer ties with the bloc after former President Viktor Yanukovych was ousted […]

Posted On : Published By : Tom Whipple