The Washington Post: Russia’s Gazprom and Ukraine are in a gas dispute as winter approaches

Mykhailo Gonchar, President of the Centre for Global Studies "Strategy XXI", gave interivew to "The Washington Post".

The frigid water that comes out of the “hot” faucet of Alexander Korniienko’s shower in Kiev is a warning for his nation: After months without natural gas shipments from Russia, Ukraine may be facing a chilly winter.

Ukrainians are layering their sweaters in preparation for yet another tough confrontation with the Kremlin, this time over energy. It is a replay of previous wintertime gas cutoffs by Russia that led to accusations that the Kremlin was using its bountiful energy supplies as a political weapon. This year, any wintertime shortfall could be far more serious for Ukrainians already contending with the dire effects of a separatist war.

Korniienko has been on the vanguard of those facing the latest gas cutoff, since Kiev eliminated city-provided hot water in July as a conservation measure. Now he bathes by heating water in pots on his stove and sloshing it over his head.

“We have the ice-bucket challenge every morning,” said Korniienko, 23, a computer programmer. “You take one shower and you go out and you get sick,” he added, suppressing a sneeze.

After months of grinding negotiations, officials from Russia, Ukraine and the European Union on Friday announced a last-ditch proposal to help Ukraine get through the winter, but the sides still appeared to be squabbling over the price Russia will charge Ukraine. Analysts said the plans may still be derailed.

The E.U. is eager to foster a deal, because continued disruptions in Russian gas shipments could extend the winter discomfort to Eastern European nations that are largely dependent on Russia for their supplies of natural gas. Most of Europe is as far north as Canada — Minneapolis is at roughly the same latitude as southern France, and Kiev is level with Calgary — so winters can be bitter. Natural gas is the most important fuel for heating their homes and providing hot water.

Energy experts and diplomats warn that Ukraine has not done enough to prepare for a season with severely limited gas supplies even as other European nations have been trying to stockpile the resource as a safety measure.

The E.U. is eager to foster a deal, because continued disruptions in Russian gas shipments could extend the winter discomfort to Eastern European nations that are largely dependent on Russia for their supplies of natural gas. Most of Europe is as far north as Canada — Minneapolis is at roughly the same latitude as southern France, and Kiev is level with Calgary — so winters can be bitter. Natural gas is the most important fuel for heating their homes and providing hot water.

Energy experts and diplomats warn that Ukraine has not done enough to prepare for a season with severely limited gas supplies even as other European nations have been trying to stockpile the resource as a safety measure.

Prodan told journalists Friday after the negotiations that Ukraine still had not consented to the price — the key sticking point in the negotiations — and had not settled on the lump sum to be paid to Gazprom. The negotiators plan to keep talking in coming days. Gazprom says that Ukraine owes it $5.3 billion for gas delivered last year and in the first months of 2014, a figure that Ukraine disputes.

Even if the sides do finalize a deal next week, it doesn’t eliminate the risk of a cutoff later in the winter, said Edward Chow, an energy expert at the Washington-based Center for Strategic and International Studies. Russia stopped supplying gas to Ukraine in the winters of 2006 and 2009, also during times of political confrontation.

“There’s still a lot of short-term brinksmanship that people can play, depending on what else is going on in the political sphere,” Chow said.

He said that the government that took over when President Viktor Yanukovych was ousted in February had done little to push energy-sector reforms that would reduce opportunities for corruption, a major problem that analysts say has contributed to Ukraine’s long-term dependence on Russian energy. Ukraine also heavily subsidizes household gas supplies, a politically popular policy but one that has created little incentive to increase energy efficiency, which is stuck at Soviet-era levels.

This year’s gas cutoff did not have a major effect on ordinary Ukrainians during the warm months. But as chillier weather has settled over the country in recent weeks, the problems are becoming more acute. In Kiev, as in many cities across the former Soviet bloc, water and air are heated at massive central stations and piped to apartment buildings.

By Michael Birnbaum

The Washington Post

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