Oil War between Russia and Ukraine

It seems that Ukraine is not going to sit on its hands and watch Russia cutting its gas shipments to the former Soviet nation. Naftogaz, the Ukrainian oil and gas corporation, informed Russia’s Gazprom that it would reduce the amount of transit gas shipments to European countries. A telegram from Naftogaz to Gazprom said that Ukraine was going to cut gas supplies to Western Europe by 60 million cubic meters a day.

"It means that Gazprom will supply this amount of gas to Ukraine, but it won't reach European consumers," a spokesman for the Russian natural gas monopoly, Sergei Kupriyanov said. He said the Naftogaz move will result in supplies of Russian gas to other parts of Europe dropping from some 386 million cubic meters to about 325 million a day.

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Further increasing the tensions between Ukraine and Russia, Russia's company Gazprom is cutting gas supplies. They are cutting supplies to different parts of Europe up to 61 million cubic meters a day. Gazprom is also refusing to pay fee to Ukraine although Gazprom agrues that they have paid all the fees. The butting heads of these two companies will get them nowhere. It is only futhering the tensions between the two countries. With Gazproms supplies shrinking this could begin to hurt Russia's economy even more.

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