Uneasy Truce in Gas Attack

Summary


The compromise reached Jan. 4, abruptly raising Russian gas prices to Ukraine from $50 to $230 per 1,000 cubic meters is nevertheless a victory for common sense.

In fact, Ukraine will switch to Turkmenistan as its principal gas supplier and buy gas from Kazakhstan and Uzbekistan as well for about $95 per 1,000 cubic meters for five years - less than half the Western European gas price. Ukraine will still buy Russian gas, but much less than before.

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Extract


Uneasy Truce in Gas Attack

By more than quadrupling the price, Moscow tried to deal a decisive blow to President Victor Yushchenko, whom Russian leaders perceive as pro-American and anti-Russian, and to influence the outcome of Ukraine's March parliamentary elections. Ukraine will pay a heavy price: between 5 a...

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