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I 've heard that the Russians raised unilaterally the price of natural gas that goes to Europe by 25%. Is that true? It doesn't sound as a co-dependency to me.

What's going on with the Nabucco Pipeline? It is much more nessesary I think.

by Greco on Wed Sep 7th, 2005 at 08:53:44 AM EST
Most Russian gas is sold under price formulas directly linked to oil products (diesel and fuel oil), usually using an average over several months. Thus Russian gas prices tend to follow oil prices with a lag of a few months and with much less volatility.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Sep 7th, 2005 at 09:53:19 AM EST
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The Nabucco pipeline is supposed to be built from Turkey to Austria (via Bulgaria Romania and Hungary - not sure abotu Greece but I think not). This will indeed allow in the long run to bring gas form the Caspain and Iran to Europe, but do note that most of the gas currently in Turkey comes from Russia, so it might yet be turned into an additional route for Russian gas... - it will certainly allow for swaps with the Russians)

It's well on its way, I think, and could be ready in a few years.

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

by Jerome a Paris (etg@eurotrib.com) on Wed Sep 7th, 2005 at 09:56:20 AM EST
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The Turkey - Greece - Italy natural gas pipeline is a different pipeline. It is under construction.

Turkey buys russian gas, because they deliberately haven't connected to the iranian grid. After the crisis  they don't need all this gas.

by Greco on Wed Sep 7th, 2005 at 11:43:39 AM EST
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Nabucco is Turkey to Austria. The Turkey to Adria (via Greece) is not happening yet.

Turkey buys Russian gas, because the Russians got there first. It's been unclear why the pipeline from Iran was not connected. I have never seen convincing proff that the pipeline on the Iranian side was actually ready otherwise they would have forced Turkey to enforce the contract.

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

by Jerome a Paris (etg@eurotrib.com) on Wed Sep 7th, 2005 at 02:48:49 PM EST
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