October 11, 2013

Putin Has Actually Admitted that Ukraine Overpays for Gas.

If you count attentively, starting with the market gas price in Europe under long-term contracts, the price of Russian gas on the Ukrainian-Russian border would have around 230–250 U.S. dollars per 1,000 cubic meters. And taking into consideration the current profitability of Gazprom and the quality of Russian natural gas, the average figure should be 260 U.S. dollars.

According to similar methodology, has been calculated possible market price of Russian gas on the border of our states, in particular, in the first quarter of 2009. Then, taking into account the profitability of Gazprom (and in the absence of the Kharkov agreements), the price of gas was about 190–200 US dollars per 1,000 cubic meterl, instead of 360 (including 20 % annual so-called Russian discounts) that we actually paid.

Consequently, like then, in 2009, so now, in 2013, Ukraine has been overpaying the Kremlin about 150 - 160 US dollars for every 1,000 cubic meters of Russian natural gas. The Black Sea Fleet's current basing in the Crimea, due to the Kharkov agreements, costs the Kremlin absolutely nothing, which fact in the international Law should be interpreted, at least as «achievement of the goal illegally» with all the ensuing consequences. In particular, the so -called Kharkov agreements should be immediately denounced.

So, it appears that the so -called «discount in the Russian way» for the portion of the gas, which so worries Putin, is in fact, no discount. In fact it is the current market price of Russian