Deal offered to the Ukraine on gas supplies
Russia has offered the Ukraine a three month delay in a dispute over gas prices. The deal consists of the Ukraine paying the normal price of $50 per cubic meter untill April 2006, when a new price of $250 per cubic meter will come into affect. If the deal is not signed and agreed by the Ukraine, Russian gas supplier Gazprom will turn off the supply at 0700 GMT on Sunday.The deal was offered by Russian president Vladimir Putin at a meeting of his Security Council. The Ukraine president, Mr Yushchenko, reacted by saying the price hike was unjustifiable as Belarus, who pays $47 per cubic meter, wasn't being asked to pay the same price of $250.
Update: Ukraine has rejected offer by Russian president Putin. Gas supplies will be cut off to the Ukraine on 0700 GMT today.
posted by Gorilla at 6:24 PM
1 Comments:
Many are labeling Russia’s pressure on Ukraine to pay market prices for natural gas as “Cold War” tactics. Of course, the Ukrainian government is paying the full price for their anti-Russian rhetoric and pro-Western orientation. Russia is flexing the only muscles she has: natural resources. But, it’s not so much a message to the Ukraine as to the West. And it’s not so much “Cold War” as Realist geo-politics.
Putin quickly realized that Russia only has one card to play in today’s world of growing demand for natural resources. Domestically, this realization became clear with the takeover of the Yukos oil company. Disguised as retribution for legal transgressions, Putin removed the threat of a western-oriented Yukos
by imprisoning its managers, and paved the way for a predictable government takeover of Russia’s oil industry. Today, it is not so clear what the rules of oil investment are (i.e. no foreigner shall hold majority stock in a Russian oil company), but it is very clear who makes the rules.
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