Moscow V. Ukraine: the Gas Battle

According to sources within the European Union the ongoing stand off over the delivery of natural gas between Russia and the Ukraine is doing quite a lot of damage to both countries' credibility. A warning statement put out by the European Union says that the fight is going to result in major consequences in political, economic and financial markets.

Last week there was a pricing problem with Kyiv which caused Moscow to discontinue all of the gas supplies that would normally be transported to the European via the Ukraine. Apparently a deal was signed a few days ago that was designed to reinstitute the gas deliveries but representatives in the European Union say that nothing has happened. No gas deliveries have shown up.

There will be a meeting on Saturday in Moscow between Vladimir Putin, the Prime Minister of Russia and Yulia Tymoshenko, the Prime Minister of the Ukraine. Both Prime Ministers are expected to sit down and work out a deal to stop the crisis that is plaguing the West. The EU tried to broker a deal earlier this week but the Ukraine blocked the attempts made by Moscow to transport the gas.

For three days in a row Moscow has said that the gas pipeline was open at the Ukrainian border. Moscow says that the government has asked Kyiv to send a limited amount of gas through the Ukraine and into the European Union. According to Moscow, it is Naftohaz, the gas utility company for the Ukraine that has declined to pass on the gas. While Moscow swears that the delivery route will work, Naftohaz says that the route would force millions of people's energy to be shut off for the delivery to get through.

Protests have erupted at the Russian consulate in the Ukraine. Picketers are protesting the Russian gas policies. Many European Union leaders have urged Moscow to fix the situation sooner than later. Moscow does not have the best reputation with it comes to being a reliable energy supplier and the dragging feet of the current Russian administration are not doing anything to help them elevate their reputation.

Around eighteen countries in the European Union have been directly affected by the sudden stoppage of gas flow out of Russia. The Ukraine transports around eighty percent of the gas that Russia exports to the European Union.

As the world works like crazy to end its dependence upon oil farmed in the Middle East, countries like Russia have tried valiantly to step up and prove themselves as a reliable energy provider for the rest of the world. Unfortunately battles between Russia and the border countries that separate it from the rest of Europe have made this difficult. To be sure, relations in the region are strained at best and this makes it difficult for Moscow to prove itself and for the West to move away from its dependence upon the Middle East.

As of yet there is no quick fix, but hopefully as time goes on and relationships smooth out, the situation will improve.

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