Finance Writer Wood: US Taxpayers on Hook for Ukraine's Gas Tab

Tuesday, 17 Jun 2014 03:30 PM

By Sean Piccoli

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
On top of bracing for U.S. pump prices to climb because of chaos in Iraq, American taxpayers will also have to cover cash-strapped Ukraine's gas bill, global finance writer L. Todd Wood told Newsmax TV on Tuesday. 

Russia officially shut off Ukraine's gas supply on Monday amid a dispute over prices and with Moscow-armed separatists defying Kiev's rule.

But Ukrainians still have access to the Russian pipeline that runs through Ukraine enroute to Europe and supplies gas to both customers, Wood told "MidPoint" host Ed Berliner.

Story continues below video.



Note: Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system – Click Here Now

So when Ukraine needs gas, said Wood, "They'll take it from that pipeline and Europe will be shorted … and Russia can't stop them."

"The question is whether Russia will be paid for it," he said.

Enter the U.S. and European Union. As Wood explained, Ukraine is already behind on disputed payments to Russia's state-owned gas giant, Gazprom, and has no means to pay for any more fuel — authorized or not — drawn from Gazprom's trans-Ukraine pipeline.

"What's going to happen is, the United States is going to have to step up, and Europe … and the money is going to go right from the U.S. taxpayer to Moscow — to Gazprom."

Meanwhile, U.S. consumers could see gas prices "easily" top $4 a gallon — up from an average price of around $3.70 a gallon now — before the end of the year "if we continue to have a shooting war in Iraq, which it looks like we'll have."

The Middle East "is where we still get the bulk of our oil," said Wood. "Even though our domestic production is rising, there is still oil that needs to flow through the [Gulf] straits. So that definitely impacts the price of oil in the short term."

Wood added, "Our government is actually not doing much to bring the price down."

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Iraq Veteran: More 'Effective' US Action Against ISIS Coming

Friday, 24 Oct 2014 22:23 PM

The upcoming midterm elections have temporarily postponed a more concerted U.S. military campaign against the Islamic St . . .

Bernard Kerik: Police Need to Learn Ebola Protocol

Friday, 24 Oct 2014 22:00 PM

Police departments must quickly learn air-tight protocol when dealing with suspected cases of the Ebola virus , but that . . .

Danny Aiello: Childhood Eczema Made Me Hollywood Outsider

Friday, 24 Oct 2014 21:46 PM

Veteran actor Danny Aiello says he's always seen himself as "an outsider" who is not part of the slick Hollywood crowd , . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved