Tuesday, January 6, 2009

At the beginning of the year problems about oil have already started: Russia and Ukraine

By Fiorella Bafundo

Gazprom, the Russian gas monopoly halted most of its supply of gas to Western Europe, because of a conflict with Ukraine, which is also one monopoly as an intermediary between Gazprom and the European countries.
European countries are very concerned about that because of the winter season and how quickly the decision has been taken.
Each side blames the other, and none of them assumes the responsibility. On the one hand, it is said that Russia is trying to make the oil prices go up due to the fact that they fell down last year, while they constitute 60% of its budget. Also, it is said that Russia is kind of angry because Ukraine is trying to be a member of the North Atlantic Treaty Organization, in which Georgia is also a member, country that Russia fought a “small” war in August.
On the other hand, some people say that Ukraine, as a monopoly too, wants to increase the tariff of oil that goes through its country. Some Russian politicians and Gazprom members also said that Ukraine shut down the pipelines. At the same time, Ukraine denies that.
Negotiations are expected to take place soon as there are going to be some meetings to try to solve the problem. Sergiy Teriokhin, minister of economy in Ukraine said "When there are two monopolies, then you need a political negotiation […]It is not just any two corporations talking. It's a political problem. It's a problem of the European Union. It is not just a problem of Ukraine and Russia."

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