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Opinion

Full of gas

26 November 2008, 19:47 | Editorial, Kyiv Post
Full of gas
Ukraine faces same schoolyard bully in a different century

Just in time for the winter holidays, the Russian government is threatening to cut off Ukraine’s natural gas supply unless the nation pays off its $2.4 billion debt and signs a new contract by Jan. 1. Happy New Year, Vladimir Vladimirovich!

In the long march of history, progress is being made. Kremlin leaders in the early 20th century starved Ukrainian men, women and children to death. Their successors in the 21st century merely threaten to freeze Ukrainians to death.

The unsubtle Kremlin gets no points for timing. The threat to cut off  gas in the dead of winter came over the weekend that Ukrainians commemorated the Holodomor, the death by hunger of millions of Ukrainians in 1932-33. The Soviets lied about the Stalin-ordered famine and today’s Russian leadership still belittles the epic crime.

Russian leaders are a strange group to be lecturing about free-market prices. Loyalty is what they really want. Russia’s precious gas comes with more conditions than a Christmas tree has decorations. Play ball nicely, which means behaving like obedient “little Russians,” then a nation can expect to get steep discounts and easy payment terms. Get uppity and start talking about NATO and the Holodomor as genocide, then the price of gas rises and payment is suddenly cash on delivery.

We don’t know the exact amount of Ukraine’s debt to Russia for natural gas. We suspect that leaders in both nations have a hard time untangling the figure since so many deals are loaded with shady intermediaries, quid pro quos and other murky conditions. But we suspect both sides will find an accommodation before long.

Fortunately, this is a standoff in which Ukraine’s geography gives it advantages. Since most Russian gas sent to Western Europe travels through Ukraine, the nation can cope with a shutoff by siphoning some of the fuel for its own needs. Russians know this well from their brief attempt in 2006 at shutoff and blackmail.

But the larger lesson here is that Ukrainians should do everything in their powers to wean themselves off Russian gas and dependence on the self-pitying bullies who run that otherwise splendid nation.

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  Comments (24)
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Andriy    (Guest) | 04.12.2008, 20:09
Whoever wrote this article is full of gas and needs some laxative to
realize the basic principles of open market international business transactions. Gazprom as
supplier has a legitimate right to charge its trading partners
including Ukraine a market level price for its exported gas supplies.
Some of these Ukrainians are nuts nationalists who will never get over
their historical memories of Stalinist oppression. It is shameful that
such negative old stereotypes still enter an on-going political
discourse of our political diplomats.
Yuschenko and Tymoschenko failed to confront the oligarchs, rent-seeking networks, and business activities of shady companies such as Rosukrenergo that made billions on gas re-sales and secured their private fortunes offshore. Now average Ukrainian folk will pay the bill and suffer....
Yuriy    (Guest) | 06.01.2009, 13:07
Well, Russia wants Ukraine to pay market price for gas - ok. But Russia also needs to unferstand that 1,7 USd in not maqrket tarrif for gas transportation (5-7 i guess). Also, 95 mln USd in not also a market price for the base rent in Sevastopol - at least 20-30 times more i guess.
So what all little Russia lovers would say on this
Guest    (Guest) | 13.01.2009, 22:55
Well seeing that Russians have stolen all the wealth of Ukraine people can still be mad.
John    (Guest) | 04.12.2008, 18:55
Dear Russia,

We don\'t have $2.4 billion. Will you accept 3 million unopened laser discs instead? They were invented in Ukraine! They are great for karaoke. Deal?

Sincerely,
Ukraine
Olga    (Guest) | 04.12.2008, 18:51
Excellent point. Ukraine needs to owe up to its obligations and stop acting like a bunch of pathetic losers. And I\'m Ukranian! No rational country would provide free gas to a neighbor that slaps it with one hand and begs with the other.
Guest    (Guest) | 04.12.2008, 18:37
Ukrainians need to get over themselves! Why on earth should Russia continue supplying gas to Ukraine at below-market rates when Ukraine goes around bad-mouthing all things Russian, in addiition to siphoning off Russian gas. Should Moscow thank Kiev for stealing Russian gas? Should it be friendly-grateful for all the horrible things Yuschenko says about Moscow? It is totally preposterous that this article makes it sound like it is somehow Russia\'s duty to supply cheap gas while Ukraine does everything to undermine Russia in local/foreign affairs. Grow up, Ukraine, and stop looking back at things that happened decades ago. Take some responsibility and pay your debts instead of whining. If you can\'t bear the cross, you can\'t wear the crown.
Mike2    (Guest) | 03.12.2008, 12:38
Now that Europe closed the door to Ukraine, the option for Ukraine is to become an ennemy of Europe. And ennemy of Russia. And an ennemy of all that disagree.

Ukrainian politicians should get some psychoanalysis sessions to get rid of mountain village paranoia. One should WORK with its neighbours, not create problems.

As to our Roosia Roosia whiners: any country in the world has a history. Look at Germany and France. Look at Luxembourg. Who did what to whom etc etc.
Guest    (Guest) | 02.12.2008, 07:51
It looks like Ukraine is blackmailing Europe and Russia. If Russia does not give Ukraine gas well bellow the market rate, Ukraine can just wait till Russia turns off he gas. Then it proposes to syphon off some of the gas bound for Europe. Steeling apparently is not a big deal in here. Then the politicians can just cry over the Russian bully, and hope Europe protects them.

It will not work. Ukraine is now obligated to transit the European gas, even as the supplies to Ukraine cease. This was agreed upon after the last fiasco, and Ukraine is compensated for transit services. However, Ukraine should definitely try to get the alternative energy. Definitely. It is available at market prices, and Ukraine is not prevented by the Russian bully to just get out and shop. Perhaps, Ukraine can find some other fools to finance its energy needs, while Ukraine reserves the right to call them names.
Guest    (Guest) | 28.11.2008, 23:44
Excellent article. Thank you editor!! This is what being Ukrainian is all about: being able to write the truth without fear. Perhaps the most dangerous job in Russia is that of a journalist. You couldn\'t write this article in Russia and survive. I thank you again for having the strength to write the truth about this annual Russian bullying.
FromUSAwithLove    (Guest) | 29.11.2008, 01:01
Don\'t be rediculous! Journalist is by far not the most dengerous job in Russia. There are way more drivers, fisherman, policemen, and people of other professions that die every year because of their jobs. There are planty of Putin critics on TV and Radio. And, no, they are not being shot or thrown to jail.
elmer    (Guest) | 29.11.2008, 16:47
Ha, Ha, ha, ha, ha!!! The trial of Politkovskaya is going on right now. The jurors were given forms to fill out by court officials to close the trial to the public - until one brave juror told the media that NONE of the jurors wanted the trial closed. Being a family of an honest juror is one of the most dangerous occupations in roosha. The come and get your family if you are an honest juror. But they still kill you if you are a journalist - as Politkovskaya found out. And it\'s NOT a laughing matter. Plenty of Putin critics on TV and Radio? Where? Certainly not in roosha - all opposition to Vlad Dracul Putin is being stamped out. Even the Internet is not safe - ask Taras Zeleniak, who got arrested for posting on a forum in Ukraine, from where he lives in roosha. And maybe if drivers and FISHERMEN are DYING in ROOSHA, maybe roosha ought to re-think the way it does business.
FromUSAwithLove    (Guest) | 29.11.2008, 21:33
Elmer, I\'m sorry, but you obviously don\'t know anything. Echo of Moscow, Moscow Times, Komersant, Newsweek, and many other media outlets IN Russia are critical of government. Look\'em up if you are interested.
Mike2    (Guest) | 03.12.2008, 13:25
Just pay your bills.

If you expect not to have to pay the bills you make yourself dependent.
Rick    (Guest) | 28.11.2008, 20:12
These are serious but very solvable problems for serious and engaged leaders. The President, Prime Minister, and Parliament should be more concerned with this and the other economic issues rather than political power and name calling. The easiest way to break free of the Russian grip of blackmail on energy is to add competition. Shop for alternate resources and supplies as well as to begin a transformation of Ukraine’s energy to other alternative energy sources. Fully utilize Ukraine\'s natural resources and strategic advantages. Russia pulls Ukraine’s strings with relative ease because it knows the Ukrainian leadership is not smart enough, skilled enough, nor united enough to equally counter Russia\'s demand for a subservient Ukraine. There- in lies the greater problem which faces Ukraine and shall prevent it from advancing further it\'s very fragile democratic government and society. The lack of effective, smart leadership and equally important it\'s lack of solidarity in government.
Guest    (Guest) | 28.11.2008, 16:50
How I\'m sick of Ukraine! Gathering of poor nothings thinking that everyone needs them just cuz of the way they are. Deserve it, dorks!!!
FromUSAwithLove    (Guest) | 29.11.2008, 06:13
Common, don\'t be rude. They have Sergey Bubka!
Guest    (Guest) | 30.11.2008, 01:57
Yeah, and they also tell it was them who invented the technology of making laser disks)))) Can you believe it?)))) And concerning the subject... Gas is not a herpes. If you want it - PAY! Nobody\'s gonna gift it. And nobody has to, since it is Russia\'s natural rich!
Guest    (Guest) | 28.11.2008, 16:48
anybody who thinks this is ukraine\'s doing has no clue and shouldn\'t even open their mouths.......... it\'s that simple............
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