< HOME  Sunday, January 01, 2006

new year's showdown in Ukraine

Ukraine has rejected a Russian offer to maintain gas supplies at current prices until April on condition Kiev then agreed to a four-fold price hike, Russia's state-owned gas giant Gazprom said.

Gazprom, which controls a third of the world's natural gas reserves, had threatened to cut gas supplies to the former Soviet republic at 0700 GMT Sunday, if a deadline, which expired at midnight, for accepting the offer was not met.

Kiev has been paying $50 dollars per 1,000 cubic metres. Gazprom wants US $230, arguing that a Soviet-era tariff needs to be increased to market rates.
It's not clear exactly what's going on. But my earlier post, Sophie's Choice, shed some light on the movement in Russia away from a free market energy sector.

Another fact worth considering is the so-called orange revolution that happened (was orchestrated?) in Ukraine at the end of 2004. Is this somehow related to that, and are both somehow related to financial markets?

This is a story worth following.


At Sunday, January 01, 2006, Anonymous Anonymous said...

It is directly related to the Deutsch Bank sponsored Orange revolution. The orange team represents old guard protection of OPEC's business model and market. This OPEC model was disrupted by a Bush and neocon attempt to takeover the largest business network in the world: BIG OIL. Before the IRAQ invasion necons were simply fellow players in the oil game. It seems neocon desires for a monopoly have come up short, save for Haliburton and a select few securty industry companies which have been robbing the USA economy. With orange team in control, and after suffering through negotiations with necons, Russia is getting shorted. Russia is defending its position in the market and weighing its options on creating a new network which would include Iran, Venezuela; and likely will be trading in petro-euros. Energy is the largest market in the world (aside from banking which handles all the finacial exchanges). I'd watch out for the petro-euro, exerts say it is the future of Big Oil currency. USA should be prepared for a blow to the economy.

At Sunday, January 01, 2006, Blogger qrswave said...

Thanks a lot for stopping by and sharing your thoughts.

I am surprised though to learn that the US has come up short on that front despite all its maneuvers with Iraq.

I think you're right. An acute blow to the US economy is on the energy horizon. God knows we already suffer from chronic monetary disease.

At Sunday, January 01, 2006, Anonymous Anonymous said...

Welcome to my feedlist, bro!

At Tuesday, January 03, 2006, Blogger qrswave said...

Hey, anonymous!



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