Russia shows the Ukraine and Europe how to play hardball.

[RB TexLa]

Russian gas flow halted through Ukraine to Europe

MOSCOW/KIEV (Reuters) – Russian gas flows to Europe through Ukraine shut down completely on Wednesday, reducing power to industries and homes in south-east Europe and disrupting supplies to major economies.

The shutdown, triggered by a price dispute between Moscow and Kiev, hit gas supplies as far West as France and Germany as Europe faced freezing mid-winter temperatures.

"Russia, which supplies 80 percent of its gas to Europe through Ukraine, has left Europe without gas. There is zero transit," said Valentin Zemlyansky, a spokesman for Ukrainian state energy firm Naftogaz.

...

The cost of protecting Ukrainian debt against restructuring or default rose to 54.75 percent on an upfront basis, meaning an investor buying protection for $10 million of Ukrainian debt must pay $5.475 million plus $500,000 a year for five years.

http://news.yahoo.com/s/nm/20090107/ts_nm/us_russia_ukraine_gas_64

Detailed Local Forecast
Tonight: Partly cloudy skies this evening will become overcast overnight. Low 16F. Winds SW at 5 to 10 mph.
Tomorrow: Cloudy with some light snow. High 22F. Winds WNW at 5 to 10 mph. Chance of snow 70%.
Tomorrow night: Mainly cloudy. Low 9F. Winds NW at 5 to 10 mph.
Friday: Overcast. High 27F. Winds W at 10 to 15 mph.
Saturday: Cloudy. Highs in the upper 20s and lows in the low teens.
Sunday: Dense fog in some areas. Highs in the upper 20s and lows in the low 20s.

http://weather.yahoo.com/Kiev-Ukraine/UPXX0016/forecast.html

[xchrom]

1. russia has a number of serious serious problems on economic fronts.

not the least is that it's corporations owe billions to investors in other countries who now want their money.

the 600 billion that russia had this summer is down to less than half.

if russia falters as dramatically as it did in 98 -- the 'recession' we're feeling now will get much much worse.

and this psychological drama play russia is engaging in now -- won't help the russian economy -- it will help gazprom and a subsidiary meet some expansion projects.

[ogneopasno]

2. Oh, I think Ukraine and Europe are quite familiar with Russia's hardball. This isn't anything new.

[Odin2005]

3. Sounds like Putin is aiming to become the most hated man in Europe.