Posted on 05/13/2006 7:23:10 AM PDT by A. Pole
RUSSIA: Russia is imposing a quadruple hike in gas prices to neighbour Belarus, triggering fears of a crisis similar to the stand-off earlier this year with Ukraine.
State-owned gas giant Gazprom has told Belarus that it must pay world prices for its gas from December if it wants to continue getting supplies.
Ukraine's failure to pay a similar gas price hike on January 1st saw Russia turn off the taps, triggering a crisis that spread across much of Europe.
Critics say the demand, on one of Europe's poorest countries, is being used as leverage for Gazprom to get control of Belarus's state-owned gas pipelines.
The move is likely to sharpen anxieties in EU countries already concerned that the Kremlin may be using gas supply as an economic weapon.
The price increase for Belarus is unusual because, unlike Ukraine, its president Alexander Lukashenko is a staunch ally of Russia.
Mr Lukashenko won re-election last month in a vote condemned as fraudulent by the EU and the US, but welcomed as fair by Moscow.
Gazprom insists the demand is based on commercial reality: Belarus pays $47 for a cubic metre of gas now, compared to the European price of $230, under a subsidy contract that runs to the end of the year.
The company says that, as with Ukraine, it wants to end the practice of offering subsidies to former Soviet states to bring it into line with modern market practices.
Gazprom spokesman Sergei Kupriyanov said the demand was being made now to give Belarus time to adjust. "So that that issue of gas prices for Belarus should not become the topic of New Year's Eve television programmes, we want to agree in advance how to work next year," he told Russian television.
Belarus has made no official comment on the demand, with Mr Lukashenko a virtual recluse since his March 19th election victory. Diplomats in Moscow say that if the Belarus leader sells his distribution network to Gazprom, he is likely to be offered a fresh subsidy agreement, in part because his impoverished country cannot pay the increase.
[...]
"Didn't the Russian govt seize Gazprom and put its owner behind bars about two years ago? If so, sounds like a move by Russia's Putin."
Yup. He's got to get the bucks for the new 'arms race - cold war' with the US that he spoke of last week."
The "owner" of the Gazprom has never been seized. Perhaps you mean Yukos? It always gives me a hearty chuckle when people on here defend Khodorkovsky - it's basically the same as defending Marc Rich (but worse - because you'd have to include killing your competitors and/or their family members).
But hey, if you guys still want to continue to defend a member of the Young Communist League who "instantly" became rich with the fall of the Soviet Union, go right a head.
Because this is an (American) conservative website. We tend to prefer democratically-elected socialists to democracy-hating communists.
They Russians are only communists in your conspiracy theory dreams. SoS Rice, Bush, and even Cheney have stated they are not our enemy. On the other hand, the East Europeans are socialist to the core.
Are you a minister of disinformation? While Russia has sold Iran weapons, it has not sold them nuclear weapons.
I don't tend to go for conspiracy theories, unlike others who see George Soros under their bed every morning. I agree with what Cheney said in Vilnius, that is all. Please try to make note of the comments to which I reply . . . I tend to match the level of BS/hyperbole I see.
No of course not. I have no interest in Luka but I have some into his people. Under his rule they will not have the chance to earn the money the gas is worth. Belarus is going to have some cold winters in the future if this idiot will remain in power.
Furthermore it is simply interesting to me that the old loyalties seem to break into pieces as long as money is involved in Russia. The current system is maybe much more instable as we all been thinking. If Putin and Miller do not care about their old buddy Luka anymore it is obvious that the coherence of "new" Russia is not really given.
Besides of that I have a natural interest that Germany will be able to control the business with the final consumers by itself. It is not in our interest if Gasprom will take over the existing German oligopoly. Although I am a stauch defender of capitalism I would prefer to see this oligolpoly controlled by the German state and gouvernment since they switched off any form of competition.
"But if you are subsidized, you are inevitably at the mercy of your supplier. If you pay market prices, multiple suppliers will beat a path to your door. Alternative supplies and alternative fuels become a practical consideration."
How many companies want to build a gas pipeline to Belarus?
Russia as well can give up this bases. Why? Any major fleet on closed Black Sea is a stranded sitting duck. For the Russian needs it is enough to have smaller fleet using port in Novorossijsk. (The rest can be moved to other the coasts.)
Then the rent will be ZERO.
It seems to me you are advocating price fixing, in favor of Lukashenko.
The gas isn't Belarus's, the pipeline isn't either actually at this point.
With Lukashenko out of the way the Belarussian people will prosper and choose a leader of THEIR design, not the one that best pleases Poland or the EU.
The German situation seems quite different and mostly unrelated.
Ukraine did not pay bills (which were set at the fraction of market price)
Well, its their natural resource, and asking world price is hardly unreasonable.
Theyve got the petroleum, and by Jingo if they do have the tens of thousands of tanks to make Lukashneko pay up.
There is nothing free about putting millions behind the most liberal candidate we can find to vote him and his socailists pals into government.
Same thing happened in Ukraine; Yushchenko has since renationalized Naftogaz, and has taken to re-writing peple's last names using Ukranian language grammar rules so as to prevent them from voting.
Very 'democratic' if by democratic you mean a tactic you'd expect to be employed by the democratic party.
Natural gas is natural. It can be found on the sea bed and can be released naturally. It is not a source of poluttion as oil can be.
There is zero chance anyone would intervene on Ukraine's behalf in such a scenerio. The occupants of said terrirories btw are not Ukranian by and large they are ethnic Russian or Crimean Tatar, both bitterly hate Ukraine's new government, and their oprssionist tactics.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.