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Old 26th December 2006, 21:14
Kolya Kolya is offline
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Russia's view of its energy disputes with neighbors

Russia defends its gas honor

MOSCOW. (RIA Novosti economic commentator Nina Kulikova) - This year has been the most eventful for Russia's energy policies since the break-up of the Soviet Union.

Moscow has convinced everyone that the many years of subsidized gas prices for neighboring economies are becoming a thing of the past and that it is firmly determined to defend the position of its energy industry on the international stage.

When Gazprom first announced its plans to go over to market prices for all its partners, including in the CIS, few could believe it possible or imagine the outcome. Yet the first days of January 2006 showed that Gazprom was determined to deal with the gas transit problem in a decisive way. Throughout 2005, Ukraine had ignored the gas monopoly's proposals to discuss gas prices and their rise. When 2006 came, and there was still no agreement in place, gas supply to Ukraine was suspended. Then Kiev began siphoning off Russian gas transported via its territory to the EU, which caused a shortage of gas and a subsequent outrage in West Europe.

The Russian government argued that the shift to market gas prices inside the CIS, no matter how painful, would eventually improve the competitiveness of economies and companies in these countries. Moreover, Europe had often called for ensuring equal terms for everyone, Moscow emphasized.

Yet if anyone in Russia had expected support from the West, they were completely wrong. The EU lodged complaints about disrupted energy supply to Moscow, not to Kiev. Western mass media began discussing Russia's "unreliability" as an energy supplier. All objections of the Russian authorities, which pointed out that Russia had never ever failed to honor its energy commitments, even during the Cold War, were drowned in a chorus of accusations of gas blackmail, with which the Kremlin allegedly thought to undermine the neighboring economies that were leaving its sphere of influence. When similar talks began with other CIS members, the phrase "energy weapon" came into use. Russia allegedly used it to "mount the gas blockade" of Ukraine and Georgia.

This unilateral interpretation of the complicated situation on the part of the West shows one thing clearly: the EU has its own interest in the sphere and it is determined to get what it wants. Concerns about the growing energy dependence on the "unreliable" supplier provided another opportunity for Europe to announce the need to diversify energy sources and to demand that Moscow ratify the Energy Charter and sign the transition protocol to it. Russia believes that the protocol in its present form contradicts its interests as it envisages open access to Russian pipelines for independent gas producers, and insists on amending it.

...more....

RIA Novosti - Opinion & analysis - Russia defends its gas honor
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Old 28th December 2006, 04:27
justoleme justoleme is offline
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I guess all the money beyond expenses is divided among the poor and unfortunate?
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Old 29th December 2006, 18:08
Kolya Kolya is offline
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Quote:
Originally Posted by justoleme View Post
I guess all the money beyond expenses is divided among the poor and unfortunate?
Communists claimed that this is what they were doing. But Communists are not in power there any more. And they are not likely to come back to power any time soon.
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Old 31st December 2006, 00:20
justoleme justoleme is offline
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Originally Posted by Kolya View Post
Communists claimed that this is what they were doing. But Communists are not in power there any more. And they are not likely to come back to power any time soon.
That is good news. I guess the gas belongs to Russians and they have the right to price it at the rate they choose.If it is worth the price there will be buyers.
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