Display:
RIA Novosti - World - Russia ready to pay market price for gas transit via Ukraine - PM - 2

NOVO-OGARYOVO, January 8 (RIA Novosti) - Russia is ready to pay a market price for gas transit via Ukraine if Kiev pays a market price for supplies of Russian gas, the Russian prime minister said Thursday.

"We believe Ukraine should pay a market price, and we are ready to pay a market transit," Vladimir Putin told foreign journalists.

"The market transit [rate] in Europe is $3.4 for 1,000 cu m per 100 km," Putin said.

Russia paid $1.6 for 1,000 cu m per 100 km in 2008 in line with a contract valid until the end of 2010. In response to a claim by Ukraine's energy ministry, the Kiev economic court ruled Monday that Ukrainian energy company Naftogaz could not pump Russian gas westwards at a price of $1.6 for 1,000 cubic meters per 100 kilometers.

The premier said mechanisms to monitor Russian gas transit to Europe should be created as soon as possible to ensure the energy security of European consumers.

Putin showed journalists documents, drafted by independent foreign company SGS, proving Ukraine illegally siphoned off Russian Europe-bound gas.

"There is proof," he said and presented the documents, when asked what data Russia had on gas tapping by Ukraine.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Jan 8th, 2009 at 03:18:13 PM EST
[ Parent ]
If you count an average 1,000km of transit, and 130bcm of transit volume, Putin is saying that they're willing to increase what they 'pay' for transit from $2.1 bn to $4.4bn. If you consider that Gazprom delivers about 25bcm of gas to Naftogas, the national gas company (outside of the RusUkrEnergo trade), it means that this gas can see its price increase from $85/tcm to $180/tcm before Naftogas has to pay a cent to Gazprom. Given that official claims are about prices in the $200-250/tcm range, it's pretty clear that the final deal will be the usual gas for transit swap, with little or no money paid.

Now, about the other 25-30 bcm coming to Ukraine... No info there...

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

by Jerome a Paris (etg@eurotrib.com) on Fri Jan 9th, 2009 at 04:33:00 AM EST
[ Parent ]
Ah now I understand.Ukraine wants Russia to pay market price for transit but is not willing to pay Russia market price for gas.How clever...
So the politic is not that much behind this conflict...he is right "it's economy"...and what a hell Ukraine expects ? Russia to "pay" for their gas while they are in bad with NATO ? Incredible how some can be arrogant.They keep forgetting that they are not Americans...they are just American prostitute.
by vbo on Fri Jan 9th, 2009 at 04:42:17 AM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Occasional Series