Gazprom rejects Ukraine’s claim

Russian energy giant Gazprom refuted Ukrainian President Viktor Yushchenko’s statement that Ukraine had resolved the gas dispute with Russia.

‘Yushchenko said today his country had used its foreign currency reserves to pay down some of the debt for the Russian-supplied gas, and restructured the remainder. “A total of $800 million was paid from the reserve funds (of Ukraine’s National Bank) and more than $200 million was transferred from Naftogaz profits, and a part of the debt was restructured for January-February,” Yushchenko said. “So the issue has been resolved for today.” “Such statements surprise us very much,” Gazprom said in a statement. “As regards bilateral relations, there are no agreements on debt restructuring, and no documents on the issue have been signed.” A Gazprom spokesman said earlier today that the company would continue talks to resolve the issue with the Ukrainian national energy company Naftogaz tomorrow, said a Ria Novosti report. “Oleh Dubyna (the head of Naftogaz) arrives tomorrow for a day or two,” Sergei Kupriyanov said. After declaring the issue resolved, Yushchenko expressed the hope that a contract for gas supplies to Ukraine in 2009 would be signed in the near future. Moscow has warned Kiev that it will cut off gas supplies in the new year if Ukraine fails to repay its gas debt, and there are concerns that the transit of Russian gas to European customers via Ukraine could be affected. Ukraine has so far repaid only $1 billion out of its $2.4 billion debt for gas supplied in September, October and November. With December’s supplies taken into account, Ukraine’s gas debt was estimated by Swiss gas trader RosUkrenergo at $3.2 billion.

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NOL to restructure Asian operations in new year

Singapore: Neptune Orient Lines (NOL) has announced that as of January 1, 2009, the Group’s Asia-wide container shipping business will be coordinated through two rather than the current three regions.

‘“Despite the current depressed market environment, Asia will continue to be a cornerstone of world trade,” said NOL group ceo, Ron Widdows. “The structuring of our Asian operations around two key regions will support efforts to place NOL’s cost base on a more sustainable footing, while enabling closer coordination of activities in adjacent countries. This will ensure we continue to provide the highest standards of service to our many customers whose supply chains touch Asia.”Under the new structure, the existing Greater China region will be combined with the company’s Japan and Korea operations – currently part of the Asia-Middle East region – to form a new North Asia region. NOL’s current South Asia President Ken Glenn will take on the role of President North Asia.The current president of NOL’s Asia-Middle East region, Jim McAdam, will be the president of the South Asia region, which will encompass company activities across South East Asia, the Indian subcontinent, the Middle East and Australasia.Dan Ryan, who has been the president of NOL’s Greater China region since August 2006, is to take up a key role with the company in the United States.

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Lawsuits and claims escalate in the dry bulk sector, reaching an estimated $300 million

When a booming sector unexpectedly falls into the red, like what happened to the dry bulk shipping industry from September onwards, differences between the stakeholders aren’t difficult to emerge.

‘Especially, at a time when every cent actually counts, no one is prepared to step back and compromise, from banks and charterers, to ship owners and shipyards. As a result, the market’s downturn has brought serious problems on the surface, such as a flurry of lawsuits and law disputes, which appeared mainly because of charter contracts breaching. Miners, charterers and ship owners are virtually on the verge of war, after a series of previous agreements were breached. Norwegian Handymax specialist Western Bulk Carriers is claiming a total of USD 5.4 million from Arcelor Mittal after it allegedly breached agreements to charter ships for four, 40,000 tonne iron ore cargoes. Similarly, London based Zodiac Maritime Agencies is also suing ArcelorMittal for USD 101 million, according to a November 24th 2008 filing. Earlier this month ArcelorMittal settled claims from SwissMarine Services and commodities trader Louis Dreyfus over failed iron ore shipments. The filing was made on December 8th 2008 in the New York Southern District Court. It’s more than obvious that the rates crisis has triggered a cascading series of claims over alleged contract defaults and early deliveries, as well as failure to pay forward freight agreement contracts. As a result even major dry bulk charterers are listed as defendants, underscoring claims by owners that even safe or blue chip companies are refusing to pay for ships they have hired since the mid September collapse in shipping rates.

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