No more bartering for Russian natural gas

RIA Novosti ^ | 23/ 08/ 2005

[jb6]

MOSCOW, August 23 (RIA Novosti) -- Ukraine must pay cash for Russian natural gas, a Russian minister said Tuesday during a meeting on energy cooperation with a Ukrainian delegation.

"We want to abandon barter practices and transition to monetary payments for the supply and transportation of Russian gas [for Ukraine]," Russian Industry and Energy Minister Viktor Khristenko said. "We would like to ensure the transparency of the supply and transportation of gas and establish relations that resemble those we have had with Europe for decades."

The Ukrainian delegation, headed by Fuel and Energy Minister Ivan Plachkov, proposed keeping the existing transportation payment methods.

At present, Ukraine buys Russian gas for $50 per thousand cubic meters, whereas European countries pay more than $100 for the same volume.

Responding to a Ukrainian proposal to sign a protocol on gas transit through Ukraine for 2006 under the current payment methods, Khristenko said, "We will not sign the 2006 protocol if we do not first work out payment methods for 2007, 2008, and the following years...and our position is irreversible."

At the end of the talks, both sides agreed to form a working group comprising representatives of Gazprom, a Russian gas monopoly, and NaftoGaz Ukrainy, a Ukrainian joint-stock energy company. The group must present several models for transition to transparent bilateral relations in the natural gas industry by September 10.

[jb6]

The "special" relationship is over, now its time to play by real world rules, which means real world prices for oil and gas, about 3 times what Ukraine used to pay. Actually this is the correct move. Moscow's old policy, one more vampire alive from the Soviet days, of feeding and heating the other former republics is pointless. People don't appreciate handouts, human nature. But they sure miss them when the reality of real costs smacks them in the face.

[bmwcyle]

We use to have to trade Pepsi for Vodka. I guess the Russian currency is worth something now.

[jb6]

The better question is who got the better deal? I think we did, Pepsi sucks, Coca Cola is much better. :0P

[Lukasz]

The "special" relationship is over, now its time to play by real world rules

Is that means that Putin will stop meddling in the next Ukrainian elections? I hope so!

[jb6]

Will Poland or the EU? I highly doubt it.

[Lukasz]

Moscow's old policy, one more vampire alive from the Soviet days, of feeding and heating the other former republics is pointless.

Yes Soviet Union was so great but cheater, thug and chief. Ukrainian great famine, that is a wonderful example how they fed the republics.

[Lukasz]

chief = thief

[Lukasz]

Will Poland or the EU? I highly doubt it.

Poland didn’t support anybody there and intervened (still supported nobody) just when the Kremlin tried to stole the election.

[jb6]

Yup, don't mention that the worst hit areas were eastern Ukraine or that Stavrapol, Krasnodar, Rostov, Volga regions suffered just as much. But we wouldn't expect you to put in those little inconvenient facts, now would we?

[Lukasz]

and in your opinion it is an exuse to the Soviet Union?

[El Gato]

The "special" relationship is over, now its time to play by real world rules, which means real world prices for oil and gas, about 3 times what Ukraine used to pay

Of course Ukraine will now demand that the Russians pay real money, not Russian script, for wheat and other foodstuffs. Top Euro, too, otherwise, let the Russians drink oil. (Which would at least help with their gas production. :) )

[jb6]

Um, Russia is a wheat and food stuffs exporter and in greater volume then Ukraine. As a matter of fact, 3 years ago, when Ukraine had a really bad harvest, Russia and Khazakstan sold wheat to Ukraine at low prices to make up the loss. Ukraine also imports lots of Russian beef and chicken.