Ukraine's Leader Points Out Drawback in Deal With Gazprom

City of Kiez

KIEV, March 14 (RIA Novosti) - Ukraine's president criticized on Friday a new natural gas deal with Russia, saying it gave Russian state gas giant Gazprom too high a quota for direct gas sales in Ukraine, his spokeswoman said.

At a meeting with his prime minister and the head of state oil and gas company Naftogaz, President Viktor Yushchenko said that although he broadly supported the deal, it had altered a key instruction he earlier issued.

The agreement guarantees Gazprom minimum annual gas sales in Ukraine of 7.5 billion cubic meters, rather than setting this figure as an upper limit, as Yushchenko had ordered, press secretary Irina Vannikova said.

"This detail needs to be clarified," she said.

Premier Yulia Tymoshenko and Naftogaz CEO Oleh Dubyna met with the president to discuss details of the agreement reached on Thursday between Gazprom and Naftogaz to end their long-running gas dispute.

Click Here

Hopefully this agreement will mend the relationship between Russia and Ukraine. If they can not decide on an agreement, then this could lead to more gas disputes throughout Europe, which could then lead to gas shortages and higher prices.

Grade This Post

Gazprom Restores Ukraine Gas Flow

Russian energy giant Gazprom has agreed to restore full gas supplies to Ukraine, ending a three-day crisis.

Gazprom had cut supplies to Ukraine by half this week, in a dispute over Ukraine's debts to Gazprom (£770m) and a new contract.

The dispute raised concern that gas supplies to Europe would be hit as much of its supply passes through Ukraine.

But Naftogaz said that supplies to Europe had not been interrupted by its disagreement with Gazprom.


Click Here

This is important because it shows that Russia has the power to control gas flowing to almost all of Europe since the gas from Russia flows through Ukraine. In the past when Russia has had disagreements with Ukraine, it has cut off the gas lines or slowed the amount running through the pipes, which has impacted all of Europe. Russia has the ability to control the amount of gas and gas exports going through Western Europe in the event of an international dispute.

Grade This Post.

Ukraine Stops The Gas Flow

KIEV (Thomson Financial) - A top Ukrainian official on Friday rejected one of the terms of a gas deal this month with Russia requiring the creation of a joint venture to distribute Russian gas in Ukraine, news agencies reported.

"We think there is no need to form a joint venture to work on the internal market," Deputy Prime Minister Alexander Turchinov was quoted as saying by Interfax and RIA Novosti.

He said Ukrainian company Naftogaz was capable of working alone on the domestic market without needing to hook up with Russia's Gazprom.

Click Here

Ukrainian officals have put a stopp to Russia's gas deal. The Ukrain believes that they can accomplish the needed results by themeselves. This will make Russia very melancholy becasue they will loose money in this deal gone wrong. The aricle providedes yet another example of Russian diplomatic relations.

Russia Proposes to Ukraine Joint Development of Oil, Gas Fields

Gazprom Building

Moscow, February 20 (RIA Novosti) - Russia has proposed to Ukraine the joint development of hydrocarbon fields in both countries on the basis of equitable asset swaps, the Russian prime minister said on Wednesday after bilateral talks.

"Our proposals to Ukraine concern not only transit operations, but also the joint development of hydrocarbons deposits in both countries, with a commensurate swapping of assets," Viktor Zubkov said.

The prime ministers of Russia and Ukraine confirmed the natural gas commitments made by their respective presidents.

Following talks with his Ukrainian counterpart, Yulia Tymoshenko, Zubkov said: "We have reaffirmed our rigorous compliance with the commitments made by our presidents in this field."

He also there were good prospects for Russian-Ukrainian cooperation in the nuclear sphere and in power engineering.

Click Here

This article goes on to say that while imports from the Ukraine have increased to almost 40%, Russian exports only grew 9%. The latest agreement between the two countries seems to be a way for Russia to undo some of its past wrongs when dealing with Ukraine and perhaps reap some of Ukraine’s trade benefits. The direct link between Gazprom and Naftogaz could create a super gas company that could create a monopoly on fuel in their area and it could cause the price of fuel to fluctuate.

Grade This Post