Posted on 01/05/2006 4:56:05 AM PST by twinself
(...)
The murky solution allowed both nations to claim victory, though Russia emerged with its reputation on world energy markets bruised after disrupting natural gas supplies to Europe in the middle of winter. Ukraine's gas utility bill will about double.
Under the deal, Russia will sell natural gas to the intermediary company at the price it had demanded from Ukraine, $230 per 1,000 cubic meters, while Ukraine will buy gas from that company as it comes into the country for $95.
Ukraine has been paying at a rate of $50 to Russia.
The company will balance out the price at $95 by selling Ukraine less of the expensive Russian natural gas and more lower-priced gas from Central Asia.
The gas from the Central Asian nations of Turkmenistan and Kazakhstan will sell for only $50 and $60 per 1,000 cubic meters.
At the center of the complex deal is an offshore energy trading company that has for a decade, under various names, shipped natural gas to Ukraine from the Central Asian country of Turkmenistan, a business exploiting the price differentials in former Soviet markets.
Exactly who walked away from the negotiating table with what benefits was obscured behind the secrecy surrounding the intermediary, RosUkrEnergo, and vague promises by Ukrainian officials that this company would be reformed in the months ahead to fulfill its new role.
Ukraine's national security adviser, Anatoly Kinakh, said in an interview that the deal would increase the importance of Central Asian natural gas in Ukraine's fuel mix, moving away from Russian supplies.
That dovetailed with Ukraine's efforts to diversify its sources of fuel, he said - though Russia still controls the pipelines leading to Ukraine, and, according to analysts, a majority interest in RosUkrEnergo through unidentified proxy owners.
(Excerpt) Read more at iht.com ...
In other words, Russia was pretty much defeated that they had to sell it at a cheaper price, also unable to blackmail Ukraine for its pro-West trends.
Putin 0, Ukraine 1. What a stupid strategy Putin made. I blame his lack of intelligence. I feel sorry for Russians for the lack of wisdom of their president they elected, putting mud on Russia's pride as the world went mad against Russia, putting Russia in a bad position with a very bad image. I also feel sorry for the lack of wisdom and leadership of Putin unable to stop the attacks from Chechen.
In other words, Russia was pretty much defeated that they had to sell it at a cheaper price, ==
How is Russia defeted if Gazprom got whatever it wanted: price $230 and transit fee $1.6?
If you know before New Year Gazprom offered Ukarien the price $160 and transit fee $1.7. Now it got even better conditions:).
HA Ha Ha. What kind of company "buys" gas at 230 and "sells" at 90? It's all a sham to save Russian face.
Puty lost this round. And showed himself to be unreliable partner and bully.
What kind of company "buys" gas at 230 and "sells" at 90? It's all a sham to save Russian face. ===
If you can read russian then go there and read. http://obozrevatel.com.ua/news/2006/1/5/77250.htm
It is ukranian source.
Accually Gazprom didn't take onligation to sell Ukraien at $95. It has to do by some offshore company RusUkrEnergo with capital of 10000 euros. So if tomorrow this company will fail it sobligations then Ukraine may ask Gazprom to sell gas at $230 (according new contract).
Now all the hope of Ukraine left on "the father of all turkmen" (Turkmenbashi) the big "democrate" himself. HE has to save the young ukranian democracy and gave up cheap gas:))))).
What if next half year he will deicide to increase his prices. What then?:))
Russia gave Ukraine the reach to Turmenbashi but she never obliged to give Ukraine cheap gas. It is matter for Turkembashi.
It's selling to itself for $230. For a bigger victory sell the gas to yourselves for $300.
P.S. I'm still contemplating about the deal, but your Russian propoganda is already at work, never stops LINK -URA!!! (hahahaaha). I heard Jan. 4 is replacicng May 8 as Victory Day.
No, if RusUkrEnergo folds, what stops Ukraine from repeating the "gas war"?
Now all the hope of Ukraine left on "the father of all turkmen" (Turkmenbashi) the big "democrate" himself. HE has to save the young ukranian democracy and gave up cheap gas:))))).
No, it doesn't matter in the least if Turkmens raise their gas- RUEnergo has to sell at $95. If their business is not profitable and they fold- start the war again. It looks like Turkmenistan is the loser here- it no longer has any contact with Ukraine and would have to sell its gas to RUEnergo/Gasprom.
If you take Russian gas at $230 and Turkmeni gas at $60 together, it comes out that Ukraine would pay $95. But if you consider that the real value of Turkmeni gas was not $60 but $85-90 because of the transit, then Ukraine paying $95 results in Russian gas sold at $160. ($95 is what Ukraine pays at Ukraine-Russia border- ie. no transit fee for the Turkmeni gas.)
That's my view, take it for whatever it is. To me this appears more like compromise, not a clear cut victory. Too bad, I wanted a victory :)
No, if RusUkrEnergo folds, what stops Ukraine from repeating the "gas war"? ==
The "gas war" with whom? With RusUrkEnergo? What is it to do with Gazprom since Gazprom will not supply Ukraine with gas anymore.
If Gazprom will fail it obligations to pay for transit then Ukarine may wage new "gas war" with it.
The beuty of this situation is that Gazprom will never be responsible for delivery the gas for Ukarine for price below $230:). The obligation to supply with cheap gas turned to Turkmenia according the new contract.
No, it doesn't matter in the least if Turkmens raise their gas- RUEnergo has to sell at $95. ==
You read contract please. You will see that $95 is only for first half of 2006. Besides this period there no price obligations.
Anyway RosUkrEnergo is NOT Gazprom. It is offshore company registered in Switzerlend.
Why Ukraine would attack Gazprom if Gazprom has no obligations to her except to pay transit fee at 1.6 for 5 years? It is like to attack Tom for deeds of Peter. Completely insane:).
Of cause Ukarien may turn off Europe but who will be guilty? Not Gazprom.
I think I'm incorrect here. (that's what happens when you have to make sense of things as they come in)
Before, Turkmeni gas would cost Ukraine $90-95 (selling price of $40-50 plus transit). Now Ukraine buys at her border from RUEnergo both the Turkmeni and Russian gas for $95. What sale for $230 can there be? Russia can only be sells at $95.
Conclusion- instead of buiyng Russian gas at $50 last year Ukraine is buying at $95. (Am I wrong anywhere?)
It is Gasprom's subsidiary. God forbid RUEnergo goes bankrupt- it means that Gasprom set up this agreement in bad faith, it's a swindler.
With regards to $95 for just half of 2006, damn, I think you're right. Let's see what happens.
It is Gasprom's subsidiary. ==
It is NOT Gazprom susidiary. I'm right again:)).
God forbid RUEnergo goes bankrupt- it means that Gasprom set up this agreement in bad faith, it's a swindler.==
WHy the ukranian representatives signed the contract then? Are they innocent children?
If it "swindler" then it will not Gazprom who will swindle Ukraine but thier own politicians who signed such contract.
Accually if you carefully red this contract (like me!) you may see that the first clase of it says that Gazprom will NOT sell no gas to Ukraine anymore. The obligation of Gazprom is only to buy the transit from Naftagaz and pay the transit fees. Period.
SO if Rusukrenergo will not find no gas for $95 it is nothing to do with Gazprom.
Gladly that this contract is available to everyone. And everyone may see it.
SO no more the lies of prime-minister Ekhunurov type of that Ukarine has "mythical" contract on $50 price as he deceived media. He had nothing like this or else he would be in court with it already. I right again:).
With regards to $95 for just half of 2006, damn, I think you're right. Let's see what happens.==
Think about Turkmenbashi. Who hold him over throat and didn't allow to raise price before today? Gazprom because it has only tube from Turkmenia out. Now Gazprom has nothing to do with Turkmenia since he gave up all its gas contracts to Rusukrenergo.
Hence Gazprom don't care anymore about Turkemenia prices since it is not buying nomore.
SO tomorrow Turkmenbashi if he is not fool will raise his prices. No more Gazprom blockade. So offshore company Rusukrenergo will go to negotiate price with Turkmenia.
Can you imagine the result of it?:)
Gasprom owns 50% of Rosukrenergo. (Rest by an Austrian company.) RUEnergo IS Gasprom's company.
Accually if you carefully red this contract (like me!) you may see that the first clase of it says that Gazprom will NOT sell no gas to Ukraine anymore.
That contract is not just between Gasprom and Naftohaz, but with RUEnergo as well. All 3 had signed it. So if RUEnergo doesn't live up to the agreement why should Naftohaz and Gasprom continue their business with each other?
SO no more the lies of prime-minister Ekhunurov type of that Ukarine has "mythical" contract on $50 price as he deceived media. He had nothing like this or else he would be in court with it already.
He did present that contract. LINK (It even has the same format as this new one.) Like with kids he had highlighted interesting parts.:)
Replaced by RUEnergo blockade. If before, Bashi had a choice to sell to Gasprom or Naftohaz, now he can't sell to Naftohaz, only to RUEnergo.
Let's just see what happens.
Gasprom owns 50% of Rosukrenergo. (Rest by an Austrian company.) RUEnergo IS Gasprom's company. ===
No you are wrong:). Probably took this from ukranian press? They deceive you. Again:).
Really Rusukrenergo (RUE) is the daughter company of Gazprom-BANK not Gazprom:). Gazprom-BANK is the daugther of Gazprom. But Gazprom has no responsibility on the obligations of Gazprom-bank not mention its daugther.
So if RUEnergo doesn't live up to the agreement why should Naftohaz and Gasprom continue their business with each other? ==
Why not if Gazprom didn't violate HIS obligations. Or it will bring the matter in court. Gladly.
He did present that contract. LINK (It even has the same format as this new one.) Like with kids he had highlighted interesting parts.:)==
He didn't present the contract. He just took from context one particular addendant #4 which concerned the gas amounts stolen in 2004. And he pretended to expand this agreement on all deliveries of 2006 years and further which accroding the contract has to be submitted by sides ANNUALLY.
He knew perfectly that his case will not be supported in court. SO he prefer to lie to media instead to go to the court.
SO you see the moral level of new "orange" ukranian goverment? I know you will say that Putin' is not better. But Putin' didn't pretend to be new democratic goverment chose western moral ways.
It is disgusting level of hypocricy isn't it?
Through the evening of 13 December the price discussed for Ukraine was $160 per 1,000 cubic meters. That evening Alexander Medvedev, GASPROM's vice president, said that if the contract will be unsigned by 1 January, Russia will turn off supplies to the Ukraine. The next morning, 14 December, Sergey Kupriyanov, GASPROM's spokesman, said that the situation has been changed and the new price is going to be $220-$230. It was the obvious step to kill all negotiations. Why did this happened? Because on 12 December Gerhard Schroeder, the former German's Chancellor accepted the top position in the new concern to build the North European Pipeline and it caused a major public scandal in Germany. On 15 December the Bundestag, the German parliament, scheduled hearings on this issue. Russians attempted to bring negotiations to an end in order to demonstrate the significance of the pipeline project (by pointing to Ukraine's gas-stealing), and justifying Schroeder's involvement. And they succeeded: the scandal around Schroeder calmed down...
Next, Russians understood that if brought to court or even to public hearings, their accusations of Ukraine stealing gas would be lost. On 4 January, the EU was supposed to discuss the situation of gas supply in Brussels - so at about 6 AM (!) on that date the contract between GAZPROM and UKRNAFTA was signed and announced at 10 AM Moscow time, before beginning of the workday in Central Europe... And here's how Russia tried to save face: they announced that Ukraine will buy Russian gas at $230 per 1,000 cubic meters, but will get it in reality for $95 because Russian gas will be mixed with cheaper Turkmenian gas!
They probably believe that no one could calculate... Let me share a couple of numbers with you. In 2006 Ukraine will get 40 billion cub.m from Turkmenistan and 16.5 cub.m from Russia. Turkmenia sells its gas to Ukraine at $65 per 1,000 cub.m. This means that Russia sells its gas to Ukraine for $165 to achieve the average price of $95 - this is exactly what was discussed and agreed before 14 December!!! And this is why Ukraine has signed this contract plus the transportation cost was increased from $1.09 to $1.60 for 1,000 cub.m on 100 km, so Ukraine agreed to the deal.
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