re-export Russian gas
Russia's Energy Minister Alexander Novak has told a German newspaper that European countries cannot re-export Russian gas to Ukraine due to contract reasons, and hinted those that do could face gas cuts.
It appears Vladimir Putin is willing to hit'em while they're down. Early European equity weakness (and safe-haven flows) on asset-freeze threats have accelerated as Bloomberg reports, Russian energy minister Alexander Novak threatens gas supply disruptions if the EU continues to re-export Russian gas to Ukraine. 3Y German bond yields have plunged to -4.1bps, a record low close and European stocks are closing on their lows of the day.

3Y yield at record (negative) lows...
3Y german bond yield
As Bloomberg reports, Russia Threatens Gas Supply Throttling to Europe: Handelsblatt
EU re-exporting Russian-purchased gas to Ukraine exceeds existing treaties, Novak tells newspaper

Novak says only adherence to negotiated agreements can guarantee undisrupted gas supplies to Europe: Handelsblatt

Novak says Ukraine has rejected constructive offers from Russia on pricing, reducing Ukrainian gas debt and future pre-payments ahead of talks tomorrow in Berlin: Handelsblatt
Who will be hurt most?

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As we discussed before, Europe is confident it can withstand a disruption as it has been storing gas ahead of the winter.
EU's record gas storage
However...
European storage facilities contained a record 75.7 billion cubic meters (2.7 trillion cubic feet) of gas yesterday, making them more than 91 percent full, according to Gas Infrastructure Europe, a Brussels-based lobby group.

"If colder weather arrives, then storage levels could well be drained," Citigroup said.
Just as we warned here...

It already appears as though the developing El Nino pattern may mean noticeably colder weather this winter...
El Nino pattern developing 2014
It appears Europe's short-term plan to mitigate the "Winter War" may have bigger boomerang consequences than they seem to believe (and bear in mind the consequences of cold, pissed off Europeans in the past).