Why Ukraine refuses to pay for gas at a price currently paid by European nations?

As Ukraine moves further down the path towards confrontation with Russia (a dream scenario for Nuland, McCain, Hillary and all the war hawks) we feel it would only be proper to show the chart that explains the latest row between the nations.

We’ll recall that Ukraine has said no to every compromise, discount and reduction Gazprom has offered it, going against its own best interests, as if the failed nation’s PM, Yatzenyuk is receiving orders from some third, invisible, party..hmmm.

Either way, on Sunday Gazprom announced that their final pricing offer was $385 per 1,000 cubic meters of natural gas, which Ukraine still said niet to.  Ukraine wants a price of $268.

Looking at the prices Europe gets from Gazprom, it is clear to see that at $268, Ukraine would be the cheapest of the bunch. The price of $385 offered by Gazprom, would have placed Ukraine’s gas payments as lower than the European average.



Price disputes between the two neighbors intensified after a government coup followed by violence in Ukraine, when the price of gas exports from Moscow to Kiev shot up from $268.50 to $485.00.

Europe imports a third of its natural gas from Russia, and nearly half of that is delivered via Ukraine.

In a free market, capitalist world, Gazprom giving a $285 price to Ukraine makes zero sense, especially since Ukraine has zero leverage in the matter, while giving such a low price would possibly prompt a price renegotiation from all European customers.

So why is Ukraine refusing to pay what the EU market, currently, on average pays? I thought the whole Maiden thing was about being more “European?”

Maybe Ukraine is so broke that it simply cannot afford anything,
Maybe its U.S. handlers are instructing the puppet Yatz to be difficult to cause tension and provoke conflict, or maybe Ukraine’s leaders are the clowns we all know them to be.

Possibly it could be a combination of all of the above.  Either way, winter is 3 months away and Europe’s BFF, Ukraine, is about to make the whole continent’s energy costs a lot higher.


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Red Pill Man of the Week – ending June 15, 2014

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