Wednesday, January 04, 2006

So soon?

So it looks like they signed a deal--Russia, Ukraine Settle Gas Dispute, to Raise Prices.

Ukraine agreed to almost double the price it pays Russia for gas, settling a dispute that cut shipments to Europe and damaged Russian President Vladimir Putin's reputation as a reliable energy supplier.

The former Soviet republic will pay an average $95 per 1,000 cubic meters for the fuel for five years, up from $50 under a previous arrangement, OAO Gazprom, Russia's state-owned natural-gas monopoly, said in Moscow today.

I wonder if they drank a toast and clapped each other on the back. Russia could have gotten this deal at any time without riling Europe. So they don't get anywhere near their $230 and they don't get any control over the pipelines in Ukraine and they've got Europe considering nuclear power. Sounds like a very successful round of negotiations, doesn't it?

1 comment:

Anonymous said...

Got that deal anytime? Like when Ukraine "overdrew" or borrowed some gaz and never paid it back?
Like when Ukrain said that not only will they raise the rent on the pipes but also on Black Sea fleet bases?
What did you smoke for breakfast? How in the world would Ukraine pay the gaz market price? Out of Bill & Melinda Gates charitable trust?