January 2006

A Cold Winter Spells Problems For Eastern Europe’s Fuel Supplies

Massive snowfall, freezing temperatures and roads grinding to a halt have plagued the UK in this cold winter, but it’s nothing compared to what’s been happening in Europe.

Temperatures in Russia have plummeted to lower than minus 30°Celsius, the lowest recorded in over eighty years. This has lead to schools being closed (children in Russia don’t officially have to go to school in temperatures below -30°C) as well as public transport (the steel cables that pull the trams simply shatter in these cold conditions) stopping completely.

These freezing temperatures have had disastrous results, with several people dying of hypothermia in the last two weeks. Moscow’s many homeless people are in extreme danger, but generosity by police officials, letting them sleep in metro ventilation shafts, has given them a fighting chance.

Russia’s Consumption Rises

This has large effects on not only a local scale, but on a continental scale, with large energy demands causing cut-offs to various recipients of Russian gas exports.

Russia’s energy usage has sky-rocketed during this bleak winter season. Peak power consumption reached 146,000 megawatts, the highest figure since the fall of the Soviet Union 15 years ago.

Due to the need for the preservation of energy, the Russian authorities ordered the deactivation of advertising hoardings and casino lights. More controversially, the Russians closed gas supplies to the Ukraine effective 1st January.

The Blockade

This blockade caused an international crisis, as the Ukraine is responsible for routing gas supplies through to many European Countries such as Hungary and Poland. Russia claimed that the gas cut-off would not effect the rest of the EU by pledging an extra 95M cubic meters per day to make up for the gas that is stolen by the Ukraine.

Several attempts failed in trying to resolve the crisis, with the Ukraine failing to accept the price rise from Russia ($50 per 1,000 cubic metres to $230 per 1,000 cubic metres).

Finally, on January 4th, the Ukraine and Russia settled a deal on the price of gas, finally agreeing on the figure of $95 per 1,000 cubic metres. Under the new compromise, the Ukraine would be supplied with much cheaper gas from Turkmenistan.

‘Sabotage’

However Russian gas supplies have again hit the news, with Georgia’s gas supplies being severely disrupted. Due to explosions near the border, Georgia has started to import gas from Russia via its neighbour Azerbaijan. This has caused tension between the two countries, with Georgia’s President Mikhail Saakashvili accusing Moscow of sabotage. Russia’s foreign ministry dismissed these accusations as ‘hysteria’.

Georgian officials state that although parts of the capital, Tbilisi, are now receiving gas, many of the city’s residents still lack supply.

Relations between Georgia and Russia have been tense since Mr Saakashvili was swept to power by the "Rose Revolution" in 2003, pledging to lead his nation on a pro-western course.

If you are interested in how to minimise your energy consumption or for advice on energy management or specific energy efficiency measures, contact Nersi Salehi on 024 7632 3260.

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