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The Misperception of the Russian-Ukrainian Gas Problem
Ocnus.net ^ | Jan 12, 2009 - 2:07:18 PM | Dr. Gary K. Busch

Posted on 05/11/2014 5:37:33 AM PDT by WhiskeyX

The relationship between Russia and the Ukraine is not an arm’s length relationship. The oligarchs behind Gazprom realised that it could not get any money out of official deliveries to Ukraine. It "solved" that problem by privatising a portion of the gas trade to Ukraine - the portion going to customers able to pay for their gas. These customers used to pay the central Ukrainian gas company, Naftohaz Ukrainy, which did not pass on that money to Gazprom; what was put in place was a mechanism whereby these customers would pay less for their gas, but would pay directly another supplier, formally unrelated to either Ukrainian gas authorities or Gazprom.

Of course, only gas coming from Russia could be delivered, and it still needed to use Ukraine's gas infrastructure, so the active cooperation of Gazprom and the Russian and Ukrainian siloviki was required to put that trade in place. In that type of system the real money generated did not need to go either to Kiev or to Moscow but could go to Switzerland. This is immensely profitable to both the Russian and Ukrainian siloviki.

(Excerpt) Read more at ocnus.net ...


TOPICS: Business/Economy; Crime/Corruption; Editorial; Russia
KEYWORDS: naturalgas; russia; ukraine
This 2009 editorial describes the corruption involved in the natural gas trade between Russia and the Ukraine. Following the departure of Yanukovych, the reformed Ukrainian government has been making arrangements to submit the Ukrainian natural gas industry to an external audit by international authorities. This independent audit threatens to put an end to the looting of the natural gas trade by the Russian and Ukrainian oligarchs, including one of Putin's major sources of loot headed to his Swiss bank account/s.
1 posted on 05/11/2014 5:37:34 AM PDT by WhiskeyX
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To: WhiskeyX

[This independent audit threatens to put an end to the looting of the natural gas trade by the Russian and Ukrainian oligarchs, including one of Putin’s major sources of loot headed to his Swiss bank account/s.]

That explains, at least in part, the Russian troop buildup on the border.


2 posted on 05/11/2014 12:26:18 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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