How energy supplies can be disrupted-Russia

Question 1

Pipeline in question

Answer 1

Trans-Siberian Pipeline

Question 2

Background

Answer 2

Tensions between Russia and Ukraine have been high since 2004,
when pro-Western forces led by President Viktor Yushchenko
won control of the government over Viktor Yanukovych, a
Moscow ally.

-Russia also opposes Ukraine’s desire to join the
North Atlantic Treaty Organization and the EU.

-The EU gets a quarter of its gas supplies from Russia - 80% of
which passes through Ukraine

Question 3

What sparked the crisis?

Answer 3

Ukraine and Russia have faced negotiations over the renewal of gas supply contracts every year,
but by midnight on 31 December 2008 they had failed to agree on the price Kiev should pay in
2009.

-This has happened 3 times before but this year, gas supplies were completely halted from 7 January, after Russia accused Ukraine of siphoning off gas meant for European customers, leaving more than a dozen countries without their expected supplies of Russian gas.

• The European Union called the supply cut “completely unacceptable”, demanded immediate
restoration and entered into shuttle diplomacy between Kiev and Moscow.

• A deal reached on 12 January, whereby EU and Russian observers would monitor supplies across
Ukraine collapsed within hours. The EU said both sides had failed to meet its terms.

• The two countries also failed to agree on a price Russia would pay Ukraine for gas transit to
Europe.

Question 4

Impacts

Answer 4

-Some, like Bulgaria, Serbia and Bosnia, are almost completely dependent on supplies via Ukraine
and so were left with major shortages, during a very cold spell in Europe.

• In the meantime European countries had to shut down industrial plants and domestic heating
systems, find alternative sources of gas or switch energy plants to oil. Schools were shut and
people had to revert to using log fires to heat their homes.

Question 5

Why the UK’s energy security be affected?

Answer 5

The amount of gas Russia supplies to Europe means that any disruptions have large-scale impacts

Question 6

Why wouldnt the UK’s energy security be affected?

Answer 6

-Reducing its dependence on Russia—building of the South Caucasus pipeline supplying gas from
Azerbaijan via Turkey, bypassing Russian territory altogether

-Press Russia and Ukraine to sign long-term contracts, with accepted pricing formulae, similar
to those that Gazprom already has with most EU countries.

-Diversify its sources of energy, something that it must do anyway if it is to meet its ambitious
climate-change targets.

Question 7

sparked crisis

Answer 7

• December 2004 - Ukraine got rid of its pro-Russian government in favour of a pro-Western government, and a year later (January 2006) its gas prices were quadrupled and the new pro-Western government refused to pay which lead to the gas supply getting cut off
• March 2008 – Gazprom cut gas supplies again to Ukraine over a dispute that Gazprom claimed was about debt. However, Ukraine was seeking to join NATO and the EU at the time, which angered Russia.
• Ukraine and Russia have faced negotiations over the renewal of gas supply contracts every year, but by midnight on 31 December 2008 they had failed to agree on the price Kiev should pay in 2009.
• This has happened 3 times before but this year, gas supplies were completely halted from 7 January, after Russia accused Ukraine of siphoning off gas meant for European customers, leaving more than a dozen countries without their expected supplies of Russian gas.
• The European Union called the supply cut “completely unacceptable”, demanded immediate restoration and entered into shuttle diplomacy between Kiev and Moscow.
• A deal reached on 12 January, whereby EU and Russian observers would monitor supplies across Ukraine collapsed within hours. The EU said both sides had failed to meet its terms.
• The two countries also failed to agree on a price Russia would pay Ukraine for gas transit to Europe.