Friday 9 January 2009

Chaos in Eastern Europe as Russia Suspends Vodka Supply


Eastern European leaders urged their citizens not to panic today after Russia took the unprecedented step of halting vodka supplies to the region.


Russia pipes a billion litres of vodka a year to her former satellite states. A vast underground pipeline delivers the vodka from a gigantic production centre in Novgorod to the Ukrainian capital Kiev. Subsidiary pipelines then continue to Georgia, Belarus, Armenia, Moldova and the Baltic States.


A cessation of the supply was initiated yesterday by Russian Vodka Minister Sergey Khardiyev. Khardiyev, a former KGB officer and close ally of former President Vladimir Putin, ordered all vodka deliveries to be suspended at once, citing alleged "discrepancies" in payments received from Ukraine. "The Ukrainians have enjoyed preferential prices for a number of years", Khardiyev said in a statement issued by the Kremlin. "Despite this, there have been increased incidents of banditry and theft along the pipeline, and Kiev has reneged on a number of payments in recent times." Khardiyev went on to accuse both Georgia and Belarus of "irregularities"; hinting at a deliberate plot to "destabilize the critical income Russia receives from her vodka exports" to the region.


International commentators, however, fear that the incident is a further example of Russian neo-imperialism. "Russia is once again bullying her smaller neighbours" said Harvey Vallance, Emeritus Professor of Russian Studies at Cambridge University. "The Caucasus depends on a steady supply of vodka from Russia, and to order a complete cessation of supply in response to these alleged financial irregularities seems a wild over-reaction. In fact, Russia is once again wielding her economic power as a club with which to beat Ukraine, and by association her neighbours."


Meanwhile, chaos reigned in the affected countries. A state of emergency was declared in Moldova, which has been without a vodka supply for over 24 hours. Soldiers patrolled the streets of Chisinau last night to maintain order after threats were made against Russian-owned businesses, whilst several bars were looted in the desperate hunt for vodka. "It was a waste of time" said cafe owner Vlad Iliescu, 66. "We have no vodka left. No-one has. Things are desperate here."


In Ukraine, the government appealed for calm after rioting broke out in the capital and several large cities across the nation. Three people were reported dead in the port city of Odessa as mobs clashed with police. "The people are thirsty" a government official said early this morning. They have never gone a day without vodka before. If the Russians are trying to destabilize [President Victor] Yushchenko, they are going the right way about it."


Ukrainian Prmi Minister and Presidential hopeful Yulia Timoshenko is to fly to Moscow today in a bid to end the crisis. Privately, observers are hopeful that pro-Russian Ms Timoshenko will successfully broker a deal to restore vodka supplies to the embattled region, in what would represent a huge coup for the Prime Minister, but a further blow to President Yushchenko.


"If Timoshenko gives us our vodka back, she will be our saint" said a weak-looking Nikolai Gulovich, 58, from his Donetsk home. "Yushchenko may as well pack his bags, because for all we wish for freedom, we wish for vodka more."


1 comment:

  1. Plus we should remember two important facts. At first, Ukraine will suffer losses because the price for using Ukranian gas pipe didn’t grow proportionally to the Rusiian gas price. Let’s make a simple calculation. Russia pays Ukraine $1,7 for transporting 1000 cubic meters of gas on 100 km. Average distance which is passed by Russian gas by our pipe aproximately 1100 km. Russia transports to Europe at least 110 milliards cubic meters of gas annually. So Ukraine gains about $2 milliards anually. And the lowest European price is $4 per 100 kilometers, so we could gain about $4,7 milliards. Accordingly we can say that Timoshenko complimented Putin about $2,7 milliards.

    How much gas could be purchased by these? 10-12 milliards of cubic meters at least. Timoshenko grants Putin more than the 50% of annual gas necessity of Ukraine. Receiving the increasing of prices and Ukraine’s obligation to buy technical gas by own cost, though at favourable prices.
    http://ua-ru-news.blogspot.com/2009/01/new-price-on-russian-gas.html

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