Will Europe subsidize it for Ukraine to keep it flowing?
The old gas price was far below market rates, a subsidy meant to buy influence. The new price is market based. Anyone who misleads about that has zero credibility.
Russian gas giant Gazprom earlier this month increased gas price for ~Ukrainian consumers to $485 per 1,000 cubic meters (tcm) from $268 for the first quarter, saying Kiev was no longer eligible for previous discounts.
“The question of repayment of debt is directly linked to the maintenance of gas prices at the level of the first quarter,” Kobolev told the Zerkalo Nedely weekly in an interview, referring to the original price of $268 per tcm.
“We see no reason to revise the price. We consider the price at around $500 as non-market, unjustified and unacceptable. Accordingly, we have suspended payments for the period of the price negotiations.”~
Western Europe pays around $500.
Ukraine has just rejected a trade agrement and any special ties with Russia for EU.
Why special price?
Unless I’m mistaken there are a whole lot of gas pipelines thet go through Ukraine to Western Europe.
What’s to keep the Ukrainians from raising their transit fee or diverting some of that to their use???
“As for market prices, Russia can charge what it wants in my opinion. Countries can either pay or not pay.”
Actually, no, Russia does not have the authority to unilaterally hike the price of its natural gas deliveries to the Ukraine. The contracts and international laws regarding coercive and unreasonable non-market pricing of such goods prohibit such actions by Russia.
Furthermore, Russia’s acts of aggression in the Crimea and now in the other Oblasts of the Ukraine have caused a state of war to exist between Russia and the Ukraine. Consequently, the Ukraine has the right to seize and impound all Russian assets, including accounts receivable for the natural gas payments, and turn those over to a trustee to manage pending the outcome of the belligerancy and any damages payable to the Ukraine from Russia for its unlawful aggressions agianst the Ukraine. the Ukraine also has the right to make legal claims against the Russian assets in other nations in accordance with the normal international laws and customs.
Tis cannot be good..
The Right Sector/Svoboda keep handing Russia pretexts for action.
I bet they pay (in one way or another).
Is there no Ukranian Chris Rock? He would have a field day about paying the utility bills with this.
and so, the battle for resources continues...little difference today, as in 1940 when Japan was forced to run blockades to have oil...hence Pearl Harbor...
In a few hours, global financial markets will open, including energy-futures markets, so we will soon find out what the world thinks of the events in Ukraine.
Will Europeans panic and sell their holdings, knowing that Vladimir Putin has his finger on a button that could cut off their natural gas supplies? Will others heed the famous advice to ‘’buy when there’s blood in the streets’’ and go on a buying spree?
Only one thing is certain — Vladimir Putin is the smartest leader in the world. He knows how to shape events to achieve his goals. He wanted to be head of the KGB and he succeeded on his own merits — no nepotism, no affirmative action, no family wealth, no corruption that’s ever been made public. He wanted to be Prime Minister of Russia, and he succeeded. He wanted to annex the Crimea to Russia, and he succeeded. If he wants to also annex eastern Ukraine to Russia, he will succeed.
The rest of us relative morons can only sit back and watch. And maybe rue the day we elected a president who is so far out of Vladimir Putin’s league that he’s become an international embarrassment.
indeed and to think the idiots in congress are all puting their eggs in the Chinese basket as a main supplier..