Putin is talking about the Refusal of Ukraine to pay her very past due gas bill to Russia. I think that the better statement is “Ukraine can not pay her gas bill”. Ukraine is flat busted, the piggy bank is broke, the coffer is empty and the pantry is bare! I am not excusing Ukraine and Ukraine has had the money to pay her gas bill. (it is lining someones pocket)
You see this past year Ukraine has been receiving gas to sell from Russia to Europe. Ukraine is to pay $179 per 1,000 cu m to Russia. Then Ukraine sells the gas to Europe at market rate of $400 to $500 per 1,000 cu m. So as you can see Ukraine makes a tidy profit on gas. They should have more than enough to pay Russia and then have extra money to help the country.
Europe pays her gas bill on time and in full. As far as I can tell Europe is not behind in gas payments. Ukraine is just a supply route country from the old Soviet Union days.
Russia in trying to help out Ukraine gives Ukraine a good deal on gas and Ukraine gets to turn a sweet profit.
The issues of gas started during the Rose revolution era. The new government of Ukraine has turned their back on Russia and expect Russia to forever supply discounted gas. What Ukraine has not learned is that you must not burn bridges with the neighbors.
The discounted gas was a favor not a right! Ukraine has destroyed her right to discounted gas by the lying and cheating against Russia over the gas issues!
Russia now says that Ukraine should pay the market rate for Russian gas of $418 per 1,000 cu m from January 1, 2009. Russia says that they no longer feel that Ukraine deserves the discount with all her past accusations and issues.
Russia is correct and Ukraine should have better control of the money and how it disappeared!
But I feel sorry for the Ukraine and European people who are caught in the middle…….
Kyle & Svet
comments always welcome.