Russia has a right to charge market rates, or even above-market rates if they choose to. But they have no right to break a contract. By doing so, they prove they cannot be trusted.
Ukraine is probably siphoning off some or most of the remaining natural gas headed west across their country. I don't know if that is legal or illegal. They have no right to steal gas belonging to Poland, but on the other hand they have a right to take the gas that Russia contracted to supply them. They also have a certain right to do what they must to keep their citizens from freezing in a Russian-caused emergency.
If Russia wants more for their gas, then they should wait a few years until their contract expires. That would allow Ukraine to find alternate sources if they don't want to pay.
What Russia is doing at present, however, is breaking a legal contract and using extortion to exert political pressure. In the long run, this kind of contract-breaking will not benefit Russia or the Russian people.
Europe, of course, will do nothing but talk. That is all they are capable of. But this, and the recent oil confiscations, will damage Russia's ability to business with other countries in every economic area, not just with natural gas.
Once more it sends the signal that Russia, which has repeatedly broken contracts and confiscated industries in the past, still cannot be trusted to keep a contract.
Thank you for that cogent post.
Ukraine will take own gas, Poland, Czech Republic and Slovakia too and who will stay without gas :) Good cause then Western Europeans maybe will at last do something with this sick situation.
If Russia wants more for their gas, then they should wait a few years until their contract expires. That would allow Ukraine to find alternate sources if they don't want to pay. ===
The contract betwen Russia and Ukraine tells that prices and volumes of delivery has to be resubmitted by mutual protocols each year.
Tat is the source of today conflict. Ukraine wants subsidised prices of previous year. Russia wants the medium europian price. SO the protocol on 2006 is not signed now.
Ukraine garanteed that transit will be safe but broke her word today when started to steal transit gas.
Russia's move will be stop of transit completely. Until the safety of transit will be garanteed.
From what I hear, they were freed from the contract because of specific clauses. Did you check the Russians side of the story?