[lbo-talk] Russia will triple gas prices for Ukraine

Peter Lavelle untimely_thoughts at yahoo.com
Fri Aug 12 12:51:25 PDT 2005


Chris, you go a little over the top. What will happen is a lot of hard talk (which has been going for months, actually). Russia has no interest in putting Ukr on the cross over gas prices (though it would be helpful if Ukr stopped stealing Russia gas).

Ukr can always keep jacking up the price for Russia to transport gas (through Ukr) to Europe. In fact both are locked into a situation in which the out come must be win-win for both.

Media really love this story because "it divides Russia and Ukraine." In the end, Ukr will have to pay higher gas prices for imported gas and Ukr (if it stops stealing) will get a increase transit cost. Ukr's bargining position is strong at this point - Gazprom can't meet most of its exports to Europe without Ukr transit.

--- Chris Doss <lookoverhere1 at yahoo.com> wrote:


>
>
> --- joanna <123hop at comcast.net> wrote:
>
> > What do you think the reaction to this will be?
> >
> > Joanna
> >
> The Ukrainian government will run to Daddy, like
> they
> always do, and make a lot of huff, and then either
> accomodate to Russian demands or fall into an even
> worse situation that they were previously in.
>
> Nu, zayats, pogodi!
>
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