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Russia and Ukraine reach complex deal (obsure mechanisms of gas settlements)
International Herald Tribune ^ | WEDNESDAY, JANUARY 4, 2006 | Andrew Kramer

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 ...


TOPICS: Foreign Affairs; Russia
KEYWORDS: gaswar; russia; ukraine
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To: gavrila
Putin is a one of the best Russia's leaders ever.

One have that kind of the best leader as he deserve :)

21 posted on 01/06/2006 11:19:30 AM PST by Lukasz
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To: RusIvan
Really Rusukrenergo (RUE) is the daughter company of Gazprom-BANK not Gazprom:). Gazprom-BANK is the daugther of Gazprom.

Ok, so it's a daughter of a daughter of Gasprom. :)

Why not if Gazprom didn't violate HIS obligations

It's a three way, a regular orgy. :) All three are responsible to keep the agreement alive.

He just took from context one particular addendant #4 which concerned the gas amounts stolen in 2004

I don't see "stolen" gas mentioned anywhere.

and further which accroding the contract has to be submitted by sides ANNUALLY.

What's the point of the first sentence on the second page which sets the price for 2005-2009 at $50 if the price is negotiable every year? Doesn't make sense. It appears that this negates that point about yearly negotiable prices in the original 2003 contract, and because #4 was signed after the 2003 contract, it is the one in power. (second sentence on the second page is just as interesting- if first sentence says Russia would have to sell at $50, second sentence says the price that Ukraine charges for its services is negotiable every year.==>ie. one side, Russia is obligated to sell for a fixed price of $50, even if the contract allows for gas price changes. Po tsymbalam kakaia tsena gaza, dolzhna prodavat' po $50 znachit dolzhna prodavat' po $50.

SO you see the moral level of new "orange" ukranian goverment?...

:) Well, listen, my government would whoop your government's a*s any day ;-)

22 posted on 01/06/2006 1:24:28 PM PST by Mazepa
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To: gavrila

Yes my point at post #11.


23 posted on 01/06/2006 1:26:02 PM PST by Mazepa
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To: KiraZ
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

Almost right. 40 bill. cub. m from Turkmenistan is NOT at $65 but at $95 (because of the transit through Kazakhstan and Russia). The price of $95 under the new agreement is what Ukraine pays at its border.

24 posted on 01/06/2006 1:35:49 PM PST by Mazepa
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To: gavrila
The price $95 is actual only during the 1st half of 2006.

Yes,that's my biggest worry.
There are pluses and minuses of the deal. A minus- price Ukraine pays for Russian gas has almost doubled, from $50 to $95, impacting economy dramatically; a plus- it's not the "world market" of $230; more of a minus than a plus- everything is in cash only. Russia pays in cash for transit, not with gas, reducing wastefullness and corruption in Ukraine significantly; but Ukraine is also paying in cash- no barter. A definite plus- an increase of anti-Russian sentiments in Ukraine. More pluses- new measures to save energy would be introduced- Ukrainians were most wastefull in the world; Ukraine less dependant on Russia; more Eastern Ukraine coal mines should be opened to cover the energy needs.

25 posted on 01/06/2006 2:16:41 PM PST by Mazepa
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Comment #26 Removed by Moderator

To: Mazepa

He just took from context one particular addendant #4 which concerned the gas amounts stolen in 2004

I don't see "stolen" gas mentioned anywhere. ==

If you recall there were the scandal last year about 7.8 blns c.m. "disappeared" from ukranian gas storage.
Adendant #4 is about this gas. Ukraine agreed to work up the "disappered" gas by transit service. SO they (Gazprom& Naftagaz) agreed to fix the price for that gas at $50 and ukranian transit fess @$1.09.


27 posted on 01/07/2006 2:19:09 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: Mazepa

A definite plus- an increase of anti-Russian sentiments in Ukraine. ==
DO you think thay were not at highest before thgis crisis? Why do you think this crisis began?
Ukarien got from Russia about 4 blns of dollar anually and sametime provided anti-russian policy.
No it is at least just. Ukraine may continue her anti-russian policy but on her account now.


28 posted on 01/07/2006 2:22:24 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: Mazepa

SO you see the moral level of new "orange" ukranian goverment?...

:) Well, listen, my government would whoop your government's a*s any day ;-)==

Russian goverment provides sometimes very cynical policy. But it did never proclaim that ite abide by western moral standards. I think it is more honest.
But what ukranian goverment do is high hypocricy. To steal from pipe then tell everyone that Russia decreased pressure. Or lie to media about addendant#4?
What is it? I think ukranian goverment overpass Putin' goverment in cynism big ways.
If you like it then think how far Ukraine from Europe in reality.

You know sometime ago I thought that Yuschenko indeed some new type leader. But now I think he is just swindler who swindle Ukraine with his pairy-tales about "great future".
He is nothing different then Kuchma (accually he was his prime-minister). But Kuchma was honestier since he didn't disgiuse his thoughts.


29 posted on 01/07/2006 2:34:14 AM PST by RusIvan ("THINK!" the motto of IBM)
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To: RusIvan
To steal from pipe then tell everyone that Russia decreased pressure

Why did Russia decrease pressure? It didn't want to pay Ukraine and thought that transit is for free. Maybe she thought that Ukraine wouldn't have the balls to take this share from the pipe.

Z Rizdvom Khrystovym!

30 posted on 01/07/2006 12:52:40 PM PST by Mazepa
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To: Mazepa

Why did Russia decrease pressure? It didn't want to pay Ukraine and thought that transit is for free. Maybe she thought that Ukraine wouldn't have the balls to take this share from the pipe. ==

It was criminal impudence but not "balls". This behaivior spoiled the opinion about Ukraine between millions of people. You may say that you don't care.
Who knows maybe one day Ukraine will ask russian help as she did many times before. Maybe Russia will not asnwer.


31 posted on 01/07/2006 1:14:44 PM PST by RusIvan ("THINK!" the motto of IBM)
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To: RusIvan
It was criminal impudence but not "balls".

How else to deal with you?- you were smuggling gas through Ukraine.

32 posted on 01/07/2006 2:41:04 PM PST by Mazepa
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