Display:
This still does not explain why Russia cut the gas to Ukraine knowing that it would be cut to Europe. Even if they managed to point out that they are not (fully) to blame, they have spent a full week underlininh how unreliable the supplies from Russia might be, thus possibly encouraging the quest for alternatives (and not necessarily of the NordStream/Southstream kind).

Nordstream will happen anyway. Southstream still has other unresolved issues beofre it happens.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sun Jan 11th, 2009 at 08:49:42 AM EST
[ Parent ]
I don't condone Russian negotiating tactics - at some point (pushing the price from 250 to 418 to 450) it was plain absurd.

To make more or less firm conclusions on what was the prevalent driver of the conflict (BTW, Yushenko secretariat just accused Tymoshenko of openly siding with Russia and aiming at political defeat of Yushenko... Russians say that negotiations were stopped in late December at Yushenko's direct order - the political/financial fight in Ukraine has been intense), we have to wait and see the parameters of the Russia-Ukraine contract.

What Russia has achieved, IMHO, is rationalization of the Russia-EU gas trade. Analysis and negotiations should become easier. Finland and Sweden won't be able to block or delay North Stream any longer. On the other hand, Europe now could rationally allow Slovakia and Bulgaria to restart their nuclear power plants, Germany would do the same, and in the long run Russia will be forced to rely on LNG more than it would have liked.

And finally, the grey trade should become harder with international monitors around. Purely on these grounds, non-transparent part of the trade must go down, which would help a lot.

by Sargon on Sun Jan 11th, 2009 at 09:29:29 AM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Recommended Diaries
Recent Diaries
Hunger March wins PR battle
by DoDo - Feb 9
1 comment

Obama wins GOP Primaries (to date)
by Frank Schnittger - Feb 8
8 comments

Romania: protests change government
by DoDo - Feb 8
6 comments

Answers to the Renewable Energy Consultation
by Luis de Sousa - Feb 7

Bristol Pound
by ChrisCook - Feb 7
14 comments

The Imitation Of Germany
by afew - Feb 4
30 comments

Strange Fruit
by Frank Schnittger - Feb 4
10 comments

Murdoch - Outsourcing and Hubris
by ceebs - Feb 3
18 comments

Mismatch with the Natural Gas Market
by Luis de Sousa - Feb 3
22 comments

The Future of Economics
by ARGeezer - Feb 2
191 comments

Desert Island Discs - Helen's distortions
by Helen - Jan 31
48 comments

Gorila
by DoDo - Jan 29
14 comments

Rail News Blogging #7
by DoDo - Jan 29
15 comments

Obama's State Of The Union: LQD
by Crazy Horse - Jan 25
74 comments

Democracy Technology
by gmoke - Jan 24
1 comment

The Hydrogen dream
by Luis de Sousa - Jan 24
49 comments

ET Paris Meet-Up 2012 (2 UPDATE)
by afew - Jan 23
113 comments

Democracy in the EU
by afew - Jan 23
52 comments

Croatia to reject EU accession Sunday?
by SteelLady - Jan 21
19 comments

Surplusses and taxation
by das monde - Jan 21
7 comments

More Diaries...
Occasional Series