Why does Russia insist on raising the price Ukraine pays for gas when world energy prices are falling?
NEMYRIA: Let us look at what a ‘fair price’ means, both for gas we consume and gas we transit to Europe. The calculation for Russian gas should be very simple: you take the price paid by end users like Germany, then deduct the transit fees Russia has to pay to [pipe the gas through] the Czech Republic and Ukraine. By that logic, the approximate price we should be paying at the Russian border is $200 to $230. That was where our price came from when we negotiated with Gazprom. We also had a memorandum on prices signed by two prime ministers. We can only guess now about what has happened to our Russian partners since October [2007]. Russia has several motives [for raising prices]. Oil prices fell significantly; even Mr. Putin admitted that the price of gas will also fall tremendously by this summer. But we would like to avoid any political retaliation. Why has Ukraine allowed a middleman company, RosUkrEnergo , to make huge profits trading gas between Gazprom and Ukraine over the last thr
Related Questions
- In terms of cooperation in energy, was the project of transporting Turkmen gas to Europe bypassing Russia discussed?
- can help Ukraine to solve their energy problem and solve long-term gas dispute between Russia and Ukraine?
- How does Duke Energys price for electricity in the Carolinas compare to its competitors prices?
