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Thursday, January 01, 2009

Gas War 2009: Yushchenko, Tymoshenko Issue Joint Statement

Below are translated excerpts from the joint statement made by President Yushchenko and PM Tymoshenko on December 31, 2008:

According on our assessments, based on the [2008] memorandum, at the beginning of 2009 the price of Russian natural gas for Ukraine at the Ukraine-Russia border should be $201 per 1,000 cubic meters and the fee for transit via Ukraine’s territory should be no less than $2 per 1,000 cubic meters per 100 km of distance.

The conditions offered by the Russian Federation, raising the price to $250, considering the steep decline in world oil prices, would in fact set for Ukraine the average European price. Meanwhile, the Russian side is offering to preserve the $1.7 transit fee, which makes up less than half of the average European figures. This transit rate renders gas pipeline maintenance practically impossible.

We assert once again that Ukraine guarantees the safe and uninterrupted transit of Russian natural gas to European consumers via its territory.

We call on the Russian side, in the spirit of strategic partnership and the traditionally friendly relations between our countries, to aid in the common effort to expedite the negotiation process regarding the supply and transit of Russian natural gas.

Gazprom claims to have shut down supplies to Ukraine as of 9:00 a.m. Kyiv time, but says it continues to supply Europe.

Sources:
http://www.president.gov.ua/news/12502.html
http://www.pravda.com.ua/news/2009/1/1/87088.htm
http://www.pravda.com.ua/news/2009/1/1/87085.htm

5 comments:

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elmer said...

Is the conflict really about gas prices and gas transit?

Well, no, at the core it is about which corrupt Ukrainian or rooshan oligarchs profit from this whole scheme, through RosUkrEnergo.

Here is a brilliant analysis, which I first saw linked on Foreign Notes.

My question is: how come Ukrainians don't seem to know what's going on in their country??????

How come Ukrainians, with notably few exceptions, can't seem to analyze what's going on in their own country??????

Or maybe it's that they are still afraid to talk about it, or speak up about it because there are still thugs in government who will beat them up???????

http://www.eurotrib.com/story/2009/1/3/786/89128

Orest said...

Exceleent article on the gas problem:

http://www.eurotrib.com/story/2009/1/3/786/89128

Owen said...

Keep warm! The news suggests that not all the gas isn't getting through to some of the Eastern EU countries in spite of Gazprom's promises.

Taras said...

Дякую Вам, Тонкі грані часу!

Слава Україні і з наступаючим Різдвом Христовим!


Thank you, Elmer and Orest!

One can see Ukraine and Russia as being locked into an interdependent gas relationship, with shadowy schemes on both sides.

The math boils down to this:

Russia wants to charge European prices for gas while paying sub-European transit fees to transport that gas over 950km of Ukrainian territory.

If Russia pays Ukraine only $1.7/Mcm/100km for transit — while Europe charges up to $3.5/Mcm/100km — then why should Ukraine pay the average European rate for Russian gas?

Besides, the fall in oil prices will entail a corresponding fall in natural gas prices.

Now, I agree that Ukraine should pay European rates for gas. Reciprocally, Russia should pay European rates for transit.

But why pay more if Russia doesn’t?


Thank you, Owen!

So far, the heating works fine in my apartment.

Naftogaz has admitted to using some of the gas to facilitate transit, as the technological process requires.