WSJ: BP in a Tight Spot as Putin Turns Up the Heat
Russia’s combative president, Vladimir Putin, has surprised precisely no one by warning that the supply of natural gas to Ukraine could be cut if an unpaid debt isn’t addressed.
The big red bill on Kiev’s doormat reads $2.2 billion, although the Kremlin has argued that, adjusted for previously applied discounts that no longer stand, this could rise to an eye-watering $16.6 billion. Mr. Putin isn’t interested in an installment plan.
As The Wall Street Journal explains, the bulk of Russian gas flow to Europe passes through Ukraine and disruptions there have caused continent-wide problems in the past. In 2008 and 2009, Gazprom turned off supplies to Ukraine in the dead of winter, elevating prices and causing shortages elsewhere in Europe.