Russia to Ukraine - no natural gas for you...!

not a happy new year for kiev and the ukraine... argentina's got some natural gas worries of its own, given that a great deal of argentina's supply comes from bolivia where president-elect morales is coming in to office on a platform of nationalizing the natural gas industry and potentially imposing significant increases on the prices of natural gas exports...

Russian gas supplies to Ukraine will be cut at 0700 GMT on Sunday, state-owned firm Gazprom announced after last-ditch talks failed to settle a price dispute.

The row erupted after Ukraine rejected Russian plans for a 460% price rise.

Earlier on Saturday, Russia's President Vladimir Putin offered a three-month price freeze as long as Kiev agreed to pay the higher price after that.

But after fresh talks, Gazprom said the offer had been rejected by Kiev and supplies would end as planned.

Ukraine currently pays $50 per 1,000 cubic metres of gas. Gazprom wants to increase the price to what it says is the market rate of $230.

Russian gas supplies account for about 30% of Ukraine's total consumption.

saying goodbye to 30% of your natural gas supply has gotta be tough... gagging down a 460% price increase has gotta be even tougher... putin's effectively nationaled gazprom and is using it to bludgeon the ukraine into rejoining the russian sphere of influence... let's see how far it's gonna get him...

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