By the way, there is still a very complex conflict in Ukraine. This article does a nice job of summarizing the problem: Russia is Hoping to Freeze Ukraine into Submission
Some major points:
- Ukraine has avoided using Russian natural gas for the last two years
- It is now a particularly cold winter there and it appears that they will run out of their own gas by the end of February or mid-March.
- Therefore, they will probably have to buy from Russia…but….
- They owe Russia $3 Billion that Russia loaned to the ousted Yanukovich regime.
- Also Gazprom is claiming from Ukraine:
- $32 billion for breach of contract lawsuit.
- $5.3 billion owed for a take-or-pay clause in their contract.
- Bills for sending gas to the separatist regions of Lugansk and Donetsk.
- Ukraine is paid $2 billion a year for the transit of Russian natural gas to the EU.
Russia is trying to bill Ukraine for gas delivered to a separatist movement that Russia supported. I am surprised they are not charging them for building the bridge across the Kerch Strait to Crimea (expected to be operational in 2019).