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Europe
Russia blinks first in gas row
2006-01-03
Russia has all but abandoned a gas blockade against neighbouring Ukraine after European trade partners complained that their own supplies had been hit and warned Moscow that relations would suffer. Gazprom, the state-controlled monopoly, said on Monday that it would restore full gas supplies to Europe by Tuesday, two days after it cut supplies to Ukraine in a dispute over a steep price rise. Gas deliveries across Europe, which imports a quarter of its supply from Russia, fell by up to a quarter as Moscow reduced exports through a pipeline to Ukraine that continues on to European customers. Russia accused Ukraine of siphoning off supplies intended for customers further along the pipeline.
Posted by:Fred

#3  Having 1/2 of their population killed during Commie rule can create resentments.

1/2 of Ukraine's gas imports is bought from Turkmenistan at $44 TCM. So by cutting off the Ukraine, Russia was in effect refusing to transport Turkmen gas that Ukraine has paid for. Another point is that Ukraine charges a low fee of about $1 TCM to transport Russian gas. Ukraine could easily up the charge $20 until alternate routes come into service or base the cahrge on the price of gas and tell the Russians to suck it up.

In the medium term, the Ukraine will be forced to build indigenously produced nuclear power plants to provide power and heating or be held hostage.

The US government should expedite Ukraine's (and Moldova's) entry into NATO and offer preferential trade terms to shift industry from China (and my favorite, Germany) so that Eastern Europe develops cash producing industries to buy commodities on the international market.
Posted by: ed   2006-01-03 14:49  

#2  Oh those Ukrainians, why do they hate us? Is it the years of being under our boot, is it the Yushchenko poisoning, is it the price gouging? Can't we just all get along? I always liked Chicken Kiev.
Posted by: Pooty Poot   2006-01-03 10:06  

#1  How gutless is Schroder? Can't stand up to blackmail, can't conduct blackmail either.
Posted by: Grunter   2006-01-03 00:11  

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