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Gazprom would lose nearly $3 billion in 2016 if the EU accepts a Ukrainian proposal to begin large-scale reverse gas flows through Slovakia to Ukraine, a UralSib report said Thursday. In late April, Ukraine and Slovakia signed a reverse flow agreement that would make use of an old, unused pipeline to begin exporting 2 billion cubic meters, or bcm, to Kiev in October. Exports to Ukraine along this pipeline would rise to 8 bcm by early 2015. According to a Kommersant report, Ukrainian energy officials recently forwarded a plan before the EU Commission that would allow Ukraine to increase reverse flows via Slovakia to 30 bcm. Uralsib estimates that Gazprom's 2016 EBITDA — or earnings before interest, taxes, depreciation and amortization — would fall by $3 billion, or 6 percent, in 2016 if Ukraine and the EU agreed to the tactic. Gazprom would end up selling higher volumes of gas to the EU, where prices range from $360 to $380 per thousand cubic meters and gas is subject to a 30 percent export duty, rather than Ukraine's price of $385, where there is no export duty and transportation costs are lower. Ukraine would be able to take advantage of low EU gas demand during the summer to fill its 30 bcm underground storage facilities, thereby replacing the 28 bcm it imports from Gazprom each year, the report found.

EU Energy Commission GЯnther Oettinger has said that such a large-scale reversal would be in direct violation of an agreement between Slovakia's Eustream and Gazprom Export. Ukraine, however, insists that the reverse flow is ensured by the EU's Third Energy Package — which, among other things, stipulates equal access to pipelines for gas suppliers. On Tuesday, Gazprom finalized a deal to build the Austrian branch of the massive South Stream gas pipeline, which, if completed, will allow Russian gas deliveries to Europe to bypass Ukraine altogether.

The President of the Czech Republic, Milos Zeman, responded to U.S. Ambassador Andre Shapiro’s comments on President Zeman’s visit to Moscow on V-Day by saying that Shapiro is not welcome at the Czech Presidential residence and that the Czech Republic has its own foreign policy. Czech President Zeman responded to the U.S. ambassador’s negative remarks in the official parliamentary online site, saying that the doors of the Prague Castle, the Czech Republic’s Presidential Residence are closed for Ambassador Shapiro.

Zeman stressed that he won’t have any ambassador to meddle in Czech sovereign affairs and the program of his visit to Moscow. During a previous TV appearance the Czech President stressed that his visit to Moscow, contrary to some claims would not undermine “the Wests position on Ukraine”. Zeman stressed the necessity to maintain and develop relations with Moscow, and not only relations based on trade, but also relations with regards to a strategic partnership. The Czech President’s response falls in line with a continuously growing continental European consensus that opposes the predominantly US/UK driven policy of tensions towards Russia. This growing consensus includes, among others, the Czech Republic, Slovakia, France, Germany, Austria, Switzerland and others.

In June 2014 both the Czech Republic and Slovakia opposed “suggestions” by U.S. President Obama to station NATO troops in the two countries. The U.S. initiative was attempted as the US stationed additional troops in Poland and the Baltic countries. It is also noteworthy that a 2014 poll revealed about half of the German population opposes NATO’s eastwards expansion that occurred after the German reunification and in violation of oral agreements. About half of the German population would prefer to see Germany as bridge with an equal distance to both the East and the West while about half of the German population does not perceive Germany as solidly anchored within NATO.

Since the economic crisis hit Europe, international investors have begun suing EU countries struggling under austerity and recession for a loss of expected profits, using international trade and investment agreements. Speculative investors are claiming more than 1.7 billion Euros in compensation from Greece, Spain and Cyprus in private international tribunals for the impact of measures implemented to deal with economic crises. This is the conclusion from a new report released by the Transnational Institute (TNI) and Corporate Europe Observatory (CEO). The report, ‘Profiting from Crisis – How corporations and lawyers are scavenging profits from Europe’s crisis countries’ (1), exposes a growing wave of corporate lawsuits against Europe’s struggling economies, which could lead to European taxpayers paying out millions of euros in a second major public bailout, this time to speculative investors. These lawsuits provide a warning of the potential high costs of the proposed trade deal between the US and the EU, which has just begun its fourth round of negotiations in Brussels.

Pia Eberhardt, trade campaigner with CEO and co-author of the report says: “Speculative investors are already using investment agreements to raid the cash-strapped public treasuries in Europe’s crisis countries. It would be political madness to grant corporations the same excessive rights in the even more far-reaching EU-US trade deal.”  The report examines a number of investor disputes launched against Spain, Greece and Cyprus in the wake of the European economic crisis. In most cases, the investors were not long-term investors, but rather invested as the crisis emerged and were therefore fully aware of the risks. They have used the investment agreements as a legal escape route to extract further wealth from crisis countries when their risky investment didn’t pay off.

For example, in Greece, Poštová Bank from Slovakia bought Greek debt after the bond value had already been downgraded and was then offered a very generous debt restructuring package, yet sought to extract an even better deal by suing Greece, using the bilateral investment treaty between Slovakia and Greece. In Cyprus, a Greek-listed private equity-style investor, Marfin Investment Group is seeking €823 million in compensation for their lost investments after Cyprus had to nationalise the Laiki Bank as part of an EU debt restructuring agreement. In Spain, 22 companies (at the time of writing), mainly private equity funds, have sued at international tribunals for cuts in subsidies for renewable energy. While the cuts in subsidies have been rightly criticised by environmentalists, only large foreign investors have the ability to sue.

Hungary's conservative Prime Minister Viktor Orban says the EU is harming itself by imposing sanctions on Russia, describing the measures as "shooting oneself in the foot". He was speaking after his Slovak counterpart, Robert Fico, had also criticised the EU sanctions. Russia is Hungary's main trading partner outside the EU. Both Hungary and Slovakia depend on Russian gas.

EU officials proposed sanctions on Tuesday to starve Russian firms of cash as punishment for Moscow's role in Ukraine, where rebels said they were storming Donetsk airport, potentially their biggest prize since turning the war's tide last week.

Rebels in Donetsk, the biggest city under their control, said they were close to recapturing its airport from Ukrainian troops who had defended it since capturing it two months ago."The airport is 95 percent under our control. Practically, we are holding it by now. Some remaining Ukrainian troops need to be cleared," said Aleksandar Timofeyev, a leader of one of the main rebel units in Donetsk. "The Ukrainian army is retreating. It's more of a flight by now. Reasonable ones give up their weapons and go. Others stay in the ground for good."A rebel source said an attempt to storm the airport was under way: "It will soon be over".Losing control of the airport in Donetsk would be a humiliating reversal for government forces that recaptured it after going on the offensive in June. Ukrainian forces abandoned the airport at the other rebel stronghold, Luhansk, on Monday.

With 2 Russian TV journalists killed in recent days and on the heels of Russia's cutting off Ukraine's gas supply for non-payment, Interfax is reporting that: *EXPLOSION ON UKRAINE GAS TRANSIT PIPELINE REPORTED: IFX *INTERFAX CITES UKRAINE INTERIOR MINISTRY ON GAS PIPELINE BLAST Witnesses say flames are reaching 200 metres high. Gazprom shares are tumbling on the news (as should European stocks) and Russia's Foreign Affairs Committee Chief Aleksei Pushkov warned relations between Ukraine and Russia have entered a new stage and are "moving closer towards a serious conflict."

As RT reports, An explosion has struck a pipeline in the eastern Ukrainian Poltava region. Witnesses say flames from the blast are up to 200 meter high, RIA Novosti reports. The “Brotherhood” natural gas pipeline (Urengoy-Pomary-Uzhgorod) is about one kilometer away from the nearest settlement. No injuries have been reported from the blast. Fire fighting crews have been deployed to the scene. Operating since 1967, the “Brotherhood” is the largest consumer gas pipeline in Europe, clocking in at 4,451 km. It cuts through Ukraine and runs into Slovakia, where it diverges in two directions; with one part supplying gas to the Czech Republic, Germany, France and Switzerland, and the other to Austria, Italy, Hungary and several countries in the Balkans. Pipeline faucets are being tuned off as fire fighters still can’t put out the flame.

As Bloomberg reports, Relations between Russia and Ukraine have entered a new stage and are "moving closer towards a serious conflict", said State Duma Foreign Affairs Committee chief Aleksei Pushkov.   Russia did not recognise unilateral border demarcation by Ukraine which was "contrary to all norms of international law", Russia's ITAR-TASS news agency quoted Pushkov as saying Tuesday.   "An attack on the Russian embassy, an attempted attack on the consulate-general in Odessa, insults to the Russian president, regular arrests of Russian journalists -- I think this is a deliberate decision co-ordinated with the U.S -- all these are links of one chain," he said. We are sure the explosion/fire on the pipeline will further this sentiment.

French President Francois Hollande says he wants Western sanctions on Russia to be lifted if progress is made in talks on the Ukraine conflict this month. He did not specify which sanctions - imposed by the EU, US and Canada - could be lifted. The sanctions began after Russia annexed Crimea in March. Mr Hollande said Russian President Vladimir Putin "doesn't want to annex eastern Ukraine - he told me that". Germany's vice-chancellor has warned against further sanctions on Russia.

There have been calls elsewhere in the EU for an easing or lifting of the sanctions on Russia, which have hit its banks, energy industry and arms manufacturers, as well as targeting powerful figures close to Mr Putin. Politicians in Italy, Hungary and Slovakia are among those who want the sanctions eased.

BRUSSELS, January 15. /TASS/. Seven EU countries support the lifting of Western sanctions on Russia, a diplomatic source in Brussels told TASS on Thursday. “The sanctions’ lifting has been supported by Austria, Hungary, Italy, Cyprus, Slovakia, France and the Czech Republic,” he said. A European diplomatic source close to the EU Council told TASS previously that foreign ministers of 28 EU member countries would not make any decisions on sanctions against Russia at their first meeting this year in Brussels on January 19. “Russia, of course, will be on the agenda of the Council (EU Council on Foreign Relations), but the specific issue of the sanctions - whether they should be cancelled, softened, renewed or not - will not be raised. The decision on sanctions should be taken in March,” he said.

According to another source, although no concrete decisions on sanctions are expected at the upcoming ministerial meeting, “the tone of this issue discussion should be softened.” “Ministers will most likely be preparing the ground for softening the sanctions regime. Perhaps the time has come,” said the diplomat. The Wall Street Journal previously reported with reference to a document prepared by the EU foreign policy service that became available to WSJ reporters that the European Union was ready to soften the anti-Russian sanctions and for partial normalisation of relations with Russia if Moscow changes its stance on the situation in Ukraine. The newspaper says this document should be considered by the participants in the meeting of the EU foreign ministers in Brussels on January 19. The document will be presented in the next few days to the EU member states’ foreign ministers.

June 25, 2014. A final number for real US GDP growth in the first quarter of 2014 was released today. The number is not the 2.6% growth rate predicted by the know-nothing economists in January of this year. The number is a decline in GDP of -2.9 percent. The negative growth rate of -2.9 percent is itself an understatement. This number was achieved by deflating nominal GDP with an understated measure of inflation. During the Clinton regime, the Boskin Commission rigged the inflation measure in order to cheat Social Security recipients out of their cost-of-living adjustments. Anyone who purchases food, fuel, or anything knows that inflation is much higher than the officially reported number. It is possible that the drop in first quarter real GDP is three times the official number. Regardless, the difference is large between the January forecast of +2.6 percent growth and the decline as of the end of March of -2.9 percent.

Any economist who is real and unpaid by Wall Street, the government, or the Establishment knew that the +2.6 percent forecast was a crock. Americans’ incomes have not grown except for the one percent, and the only credit growth is in student loans, as those many who cannot find jobs mistakenly turn to “education is the answer.” In an economy based on consumer demand, the absence of income and credit growth means no economic growth. The US economy cannot grow because corporations pushed by Wall Street have moved the US economy offshore. US manufactured products are made offshore. Look at the labels on your clothes, your shoes, your eating and cooking utensils, your computers, whatever. US professional jobs such as software engineering have been moved offshore. An economy with an offshored economy is not an economy. All of this happened in full view, while well-paid free market shills declared that Americans were benefiting from giving America’s middle class jobs to China and India.

An official decline of -2.9 percent in the first quarter implies a second quarter GDP decline. Two declines in a row is the definition of recession. Imagine the consequences of a recession. It means that years of unprecedented Quantitative Easing failed to revive the economy. It means that years of Keynesian fiscal deficits failed to revive the economy. Neither fiscal nor monetary policy worked. What then can revive the economy? Nothing except to force the return of the economy that the anti-American corporations moved offshore. This would require credible government. Unfortunately, the US government has been losing credibility since the second term of the Clinton regime. It has none left.

The Syriza win in Greece has had everyone from Brussels to Mars wondering about a potential ‘Grexit’ from the euro zone, but there hasn’t been quite as much talk about what having Alexis Tsipras in power means for Russia. Until now. Now that he’s in, the wheels of thought have been turning rather furiously in the anti-Russia, pro-whatever-Washington-wants media circles and the consensus is broadly: Oh, dear. Greece could now turn into a real troublemaker for the European Union and, by extension, the US — and in more ways than one.

If Athens breaks with the Brussels line, watch out for Hungary and Slovakia to possibly do the same.

It’s also worth remembering that only weeks ago, French President Francois Hollande dangled the idea of lifting Russia sanctions if progress could be made in Ukraine. France does not want to “push Russia onto its knees,” he told Bild am Sonntag newspaper in December.

The Eurasian Economic Union (EEU) is considering the launch of a currency union within the 170 million inner market that was launched in January 2015. The Presidents of the EEU member States agreed to continue their work at coordinating the Union’s monetary policy.  After meetings with the Presidents of Belarus and Kazakhstan in Astana, Russian President Vladimir Putin told the press that the EEU member States are discussing the establishment of a currency union and continue coordinating monetary policy, reports the Belarus news agency BelTa. The news agency quotes Putin as saying:

Putin described talks with Belarus President Alexander Lukashenko and Kazakhstan’s President Nursultan Nazarbayev in Astana on March 20 as “very intensive and informative”. President Nursultan Nazarbayev is widely regarded as the intellectual mastermind of a post-Soviet Union political and economic integration. The three heads of State reportedly discussed a wide range of issues about Belarus, Kazakhstan and Russia. The aggregate GDP of the troika amounts, according to BelTa, to 85% of the GDP of the CIS with Russia ranking first, followed by Belarus and Kazakhstan on a shared second place. The establishment of the EEU in January and discussions about the establishment of a currency union come against the backdrop of a series of US, UK, EU, G7 sanctions against Russia over the situation in Ukraine, with Germany, France, Czech Republic, Slovakia and some other European nations being reluctant about obstructing European – Russian relations. Especially strong French and German lobbies would rather see a closer cooperation between the EU and the EEU than a predominantly US/UK dominated policy of tensions that aims at maintaining an US/UK hegemony in Europe and a global dollar-dominated economy.

“We think that the time has come to talk forming a currency union in the future. … It is easier to protect the common financial market when working shoulder by shoulder”.