Wednesday, March 12, 2014

The West considers ways to Loosen Russia's Gas Grip

Western officials are scrambling to loosen Russia's energy stranglehold on Ukraine, the latest sign of growing pressure on Moscow to end the crisis. 
The options being considered by officials from Brussels to Washington include larger exports of U.S.-made natural gas, reversing the flow of natural gas through pipelines from Western Europe back into Ukraine, and accelerating plans across Europe to buy more energy from countries other than Russia.
Russian gas giant Gazprom's recently built Adler thermal 
power plant in the Russian Black Sea resort of Sochi. 
AFP/Getty Images
"If no solution to this can be found," European countries will "recast their approach to energy and economic links with Russia over time," U.K. Foreign Secretary William Hague said Sunday. 
Western officials also have threatened sanctions against Russia if the Kremlin continues its occupation of the Crimea region of Ukraine. The threats have failed so far, with Russian President Vladimir Putin declaring his support Sunday for Crimea's move to secede from Ukraine. The region could join Russia as soon as this month, a Kremlin-backed leader in Crimea said.
The White House said President Barack Obama would meet Ukraine's new prime minister in Washington on Wednesday, warning that Moscow would face even more outside pressure if there are further steps toward Russia annexing Crimea. A referendum to ratify the move is set for March 16. 
Ukraine's reliance on Russia for its energy needs was thrust into the center of the crisis Friday when Alexei Miller, chief executive of OAO Gazprom, said Ukraine owes the gas exporter $1.89 billion and had failed to meet a Friday deadline for payment of its February deliveries.
He warned that failing to pay the bill could cause Gazprom to turn off the natural-gas spigot to Ukraine. The threat raised the specter of a repeat of a shutdown in 2009 that cut off supplies to Ukraine for several weeks, raised prices and caused some shortages in other parts of Europe.
Read the rest of the Story HERE.

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