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To: A. Pole

Going from a subsidized price to a market price is always tough.

But if you are subsidized, you are inevitably at the mercy of your supplier. If you pay market prices, multiple suppliers will beat a path to your door. Alternative supplies and alternative fuels become a practical consideration.

It may not seem like it, but in the long run Gazprom is doing them a favor. Although, if Gazprom is really playing it shrewdly, they will still price themselves just under market price, just low enough to keep out the alternatives.

But, if they do, then Belarus is still getting a bargain, even if it doesn't feel like it.


12 posted on 05/13/2006 9:36:10 AM PDT by marron
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To: marron

"But if you are subsidized, you are inevitably at the mercy of your supplier. If you pay market prices, multiple suppliers will beat a path to your door. Alternative supplies and alternative fuels become a practical consideration."

How many companies want to build a gas pipeline to Belarus?


53 posted on 05/13/2006 7:05:39 PM PDT by strategofr (FirstLady Hillary's Christmas tree-syringes, sex toy, erect penises, Hillary's Secret War,Poe, p.147)
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