"Long Russian Winter" coming - Saving up gas for winter: Ukraine cuts consumption 30%.

"Long Russian Winter" coming - Saving up gas for winter: Ukraine cuts consumption 30%. (RT).

The savings plan was announced by the deputy head of Naftogaz Alexander Todiichuk on Ukrainian TV in mid–July.

“The saving regime is being forced in Ukraine and it’ll officially come into operation as of August 1,” he said.

The 'regime of gas saving' includes cutting the use of gas by 30 percent in manufacturing and municipalities, while consumers that rely on government funding, such as schools and hospitals, would have to cut gas consumption by 10 percent.

The measure are expected to save about 150 million cubic meters of gas per month, which will be pumped into underground storage, said Todiichuk, adding that the volume should increase starting from August.

Coming into the winter, Ukraine has 16-17 billion cubic meters of natural gas saved up in underground storage.

The government in Kiev estimates Ukraine needs to import 7.23 billion cubic meters of gas in the next eight months through to March in order to keep economic activity stable, especially during the high-demand winter season.

Supplies from Russia were cut (link) in June after Kiev failed to pay a$5.3 billion gas bill and as Ukrainian and Russia sides squabbled over a fair price.

Ukraine’s Energy Minister Yuri Prodan said reverse gas flow supplies from Slovakia could begin in August, if not September.

The US government has considered starting gas exports to Europe, but there is a lack of infrastructure.
On Friday Russia's permanent representative to the EU Vladimir Chizhov said there won’t be an alternative to Russian gas in the near future.

The diplomat said that US shale gas is not being delivered anywhere and the country has just one terminal for liquefying gas.Hmmm.....The government in Kiev estimates Ukraine needs to import 7.23 billion cubic meters of gas in the next eight months,  where do they think to steal it from EUROPE?



READ MORE: Russia-Ukraine gas war: Europe wonders what's in store

IMF experts do not understand what's happening in the Ukrainian economy, blocked transfer of the second tranche of financial aid

IMF experts do not understand what's happening in the Ukrainian economy, blocked transfer of the second tranche of financial aid. (VoiceOfRussia).

IMF experts do not understand what's happening in the Ukrainian economy. They even extended their stay in Kiev to gather more information and blocked pending the transfer of the second tranche of financial aid.

For cons, the situation in Ukraine is no doubt for most analysts: the country has been and remains on the brink of bankruptcy when the civil war started by Kiev made a clean sweep of the rest of industry and infrastructure .

It is still in April that the IMF had announced that Ukraine a loan of $ 17 billion spread over two years. The first installment of a little over $ 3 billion, was transferred shortly after but there was a delay in the second.

The IMF says this setback by "the situation is changing rapidly and the need to discuss a number of issues with the government." 

The West seems to gradually become aware of the pit he had dug for both Ukraine and the rest of Europe.

The Ukrainian economy was on the verge of bankruptcy before the Civil War. This is the situation that the new authorities in Kiev are powerless to recover and rely solely on Western aid.

Anxious to get it at any cost, they have already made cuts in planned spending by practicing job cuts in the public service, freezing wages and social benefits and rising gas prices, heating and electricity in the context of devaluation hrivnyia.

This is, indeed, the beginning, says political observer Alexander Kareevski: "The State missed tax revenue which will affect the salaries of doctors, teachers etc.. The standard of living will soon fall and already declining. Clearly, Ukraine is a failed state that can live only in external financial infusion.

Just this year, it must pay $ 20 billion to cushion the negative balance in its balance of payments, which roughly corresponds to the way it should receive credit from the IMF. "

The Ukrainian government also relies on the West to clear the avalanche of social problems. The World Bank had promised him a loan of $ 300 million supposedly to help the poorest layers of population. Remains whether this "astronomical" sum is sufficient to change anything - Sergei doubt Khestanov, director of group of companies "ALOR."

"$ 300 million in all and for all, divided by at least 10 million poor, this is at most $ 30 per person. It is for this reason that the money in question is likely to be broken down by other topics. "

It goes without saying that Western tranches can not solve all these problems because they barely enough to service the debt. Therefore, Poroshenko must prepare for a new Maidan to next winter if obviously it nothing happens in the meantime. Hmmmm.....It's going to be a long, cold Russian Winter.