Russia Cuts off Gas to Ukraine in Dispute over Payment and Price -Western European Supplies Under Threat

Gazprom (Russian state gas monopoly) has stopped its gas supply to Ukraine at 10:00am January 1 Moscow time due to unpaid debt, though 300,000 cubic metres is still passing through Ukraine, as Gazprom has promised to maintain supplies to Europe. Ukraine’s Naftogaz (state gas monopoly), claims that it sent 1.5 billion dollars to settle its debt. Gazprom claims to have received no money. The talks over the contract for the 2009 supply have collapsed with no agreement.

Ukraine according to Vladimir Putin had been offered a price for gas of $250 per 1,000 cubic metres, a large increase on the $180 it had been paying but significantly lower than the free market price of $418. Ukraine is believed to have offered US$201 per 1000 cubic metres. Ukraine's currency the hryvnia has halved in value in the the past six months. This increases repayment costs for gas to Gazprom. Kiev has however three to four months supply of gas in storage-17 billion cubic metres.

There are a number of possible implications. The cut off could cause a drop in pressure in the transit pipelines or the Ukraine could halt the flow to Western Europe as a negotiating tool. The largest consumers are Italy, Germany and the UK. The Ukraine has stated that it cannot fully guarantee the transit of gas through its country. However it appears today to have modified its position and guaranteed supplies to Western Europe. In January 2006 gas supplies destined for the EU were disrupted for several days in a similar dispute. EU countries must expedite measures to increase self -sufficiency in energy supply. This will involve the construction of more nuclear power stations and a greater concentration on renewable energy.

Irish Rugby Union- Money talks

Apparently All Black wing Doug Howlett appears to be on the verge of signing for Munster. However he will not be available until the latter stages of the Heineken Cup.



The 28-year-old Auckland rocket is part of New Zealand's World Cup squad. The deal is believed to be worth €1 million.

Undoubtedly the Munster back division lacks flair. A fit and eager Howlett could electrify the province. Though only 28 years old he has a lot of mileage on the clock. He has played for the All Blacks on 60 occasions. He has 93 Super 12/14 caps and 52 provincial caps. Munster may gain in the short term but is it not time for the province to produce dynamic backs of its own?

The signing of Howlett will hinder the development of indigenous backs. The huge influx of players from New Zealand and South Africa into French and English clubs has probably forced Munsters hand. Success in Heineken Cup Rugby is a financial necessity.

Indeed Irish Rugby Union has suffered from the failure of the IRFU to cultivate Sevens Rugby both domestically and Internationally. It is noticeable that countries such as New Zealand and Australia take International Sevens very seriously. In general Southern Hemisphere players are more comfortable with ball in hand than Irish players. Granted that the Leinster back division -with players such as Hickie, O'Driscoll, Darcy and Horgan- exudes class. Unfortunately this is the exception rather than the rule.

IRISH coach Eddie O’Sullivan is believed to have signed a 4 year contract with the IRFU worth €5 million. This is in advance of the World Cup. It would make more sense to negotiate with O'Sullivan after the World Cup. This generous deal will have knock on effects as players who do the hard graft will look with jaundiced eye at such generosity.

Renewal of player's contracts may be more costly than the IRFU anticipate. Player contract inflation may haunt the IRFU for a prolonged period of time.