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Wednesday, October 25, 2006

Give It To Me, Baby!
Gas @ $130 for FY 2007

Glory to the great gas-giving nation of Russia! The Ukrainian economy will make it through next year!

Despite a prior statement to the contrary, Fradkov and Yanukovych apparently did discuss gas during their Tuesday meeting. The new alleged offering: $130 per 1000 cubic meters, down from the previously forecast $135.

Why sell at a discount? Now here comes the punch line. Russia wants its sons to stay in charge, and is willing to back them with humanitarian aid.

This also implies that, with Yushchenko’s silent approval, Kyiv and Moscow have reached an understanding on the issue of Ukraine’s WTO and NATO accession. Ukraine will hold its horses, or to be more precise, will allow itself to be held in the missionary position, right?

Well, not the worst price, if we take a look around, as some might argue. But how does this paid deceleration relate to Yushchenko? It pulls the rug from under miles of deceptive $95/5 rhetoric Yushchenko and his gas baron Ivchenko have indulged in.

Undoubtedly, Ukraine’s employability in the WTO and NATO can be seriously restricted if the country’s industry and the public sector remain Europe’s most energy inefficient.

Some relief comes from the fact that the modernization movement is sweeping Ukraine’s industrial giants. IPO-bound SCM and ISD have already beaten a path to the world’s financial markets.

The big question, of course, is whether we common folks should pay for it with our geopolitical and economic liberties?

1 comment:

Stefan said...

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