Gazprom Sees Action on Eastern Front

Kommersant ^ | June 30, 2006 | Natalia Grib

[sergey1973]

Relations between Gazprom and Turkmenistan have come to an open conflict over natural gas. Yesterday they annulled their agreements on gas supplies to Russia for this year and next. Gazprom's monopoly on Central Asian gas is thus broken. The conflict is to the advantage of Ukraine, which can now obtain 17 billion cubic meters of gas, more than half of its import needs for the second half of the year. It also strengthens Ukraine's position in negotiations with Gazprom that are to take place on July 1.

[sergey1973]

Politics make strange bedfellows -:))))

[sergey1973]

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[GarySpFc]

The Ukraine was counting on purchasing gas from Russia and the Turkman, which mixed together provided them a price of $95. How a new deal will benefit the Ukraine is questionable, and especially when it is Gazprom's pipeline which will deliver the gas.

[cripplecreek]

I was watching a show on Discovery the other night about the enormous liquid natural gas plant being built on sakhalinskaya island. They'll drill in the sea of Okhotsk and pipe it 600 miles south to reach a port that stays ice free throughout the year.

It's really quite amazing what a country can do when they don't have the EPA breathing down their necks.

[sergey1973]

We'll see how negotiations go in the next few days or weeks.
Overall, I am all for both Russia and Ukraine ending their mutual energy dependency on each other.

[GarySpFc]

Russia isn't energy dependent on the Ukraine. Indeed, she is developing new markets. I have little doubt she would rather sell her gas to clients who will not steal from them, and will pay their bills.

[1rudeboy]

Just as Ukraine would rather buy gas from someone more reliable.

[WoofDog123]

"Just as Ukraine would rather buy gas from someone more reliable."

would they rather pay market value for the gas as well?

[1rudeboy]

No, contract price.

[Wiz]

ping

[GarySpFc]

Maybe they would rather collect their gas pipeline transit fees from someone other than Gazprom too.

[1rudeboy]

It would be nice if they could find someone more reliable.

[GarySpFc]

It would be nice if they could find someone more reliable.

The Ukraine siphons off billions of dollars worth of gas from Gazprom, and on top of that does not pay their bills. Who is reliable?

[1rudeboy]

Ahh Russia, always the noble victim, and incapable of determining how much gas it ships.

[GarySpFc]

You expect the Ukraine to give its gas to the Ukraine for less than cost. To me you sound like a typical socialist.

[1rudeboy]

You sound like a Russian who knows nothing about the law of contracts. "I know I signed it, but it's not FAIR! Boo hoo."

[GarySpFc]

You sound like a Russian who knows nothing about the law of contracts. "I know I signed it, but it's not FAIR! Boo hoo."

Actually I am an American and I have studied law. One would think you would know the agreement between Gazprom and the Ukraine was not a unilateral, but rather a bilateral contract. Under a bilateral contract both parties to the agreement are expected to perform according to the contract. In the Ukraine's case they agreed to deliver the gas through the pipeline crossing their territory, and they were paid for their service by Gazprom. However, the Ukraine has a long history of siphoning gas and selling it for market price to the EU. Furthermore, they have a poor track record making payments. Both of these were violations of the contract, which Russia was willing to take to the Swedish Court of Arbitration. Ukraine refused the offer of arbitration. Now, would you like to discuss legal contracts more in depth?

[1rudeboy]

Sure, counselor. Let's begin by you explaining to me how I (Ukraine) can breach the contract, and refuse to let you take me to court. LOL

[GarySpFc]

Sure, counselor. Let's begin by you explaining to me how I (Ukraine) can breach the contract, and refuse to let you take me to court. LOL

If either party refuses arbitration, as provided for in the contract, then said contract is null and void.