Price of Sovereignty
One of the main terms of Russian-Ukrainian gas war of nerves is market prices. Russia offers Ukraine (because it considers itself a state independent of Russian geo-political interests) to buy natural gas for market price. Moscow sarcastically points out that Europe recognized Ukraine as a country with market economy. Yushenko is trying to keep the face and confirms Ukraine’s readiness to switch to market prices. However, the problem is -- there are no market prices for gas inexistence.
Gasprom with its price policy is the best example for that. Price for Byelorussia is $47, for Georgia - $110, for Baltic countries - $120, and for Ukraine the market price went up for one night from $160 to $230 per 1,000 cubic meters. The purchase price of gas from Turkmenia is $44. The price of gas supplied to Europe is tied to energy basket and is equal to $255. However, even this formula is high pathetic one, because sides agreed on these prices. Which, among these figures, is true market price for gas? There is none. The price is set by the contract, and the contract can include various parameters to justify the price. A contract also considers at least two partners signing it.
Today, it looks like Russia is giving new prices to its former partners. And the height of the price depends of how much troubles the partner caused for Moscow. Byelorussians are trouble-free. Ukrainians are real trouble makers. And there is certain logic in it too.
The Gasprom’s price attack is a proof that first stage of post-Soviet history is over. The corner stone of relationship among the CIS countries was concept of limited sovereignty. CIS countries had certain obligations to Russia and that was limiting their freedom: they could not join military blocs; they should not allow foreign military bases on their territories; they have to respect Russian interests in defense infrastructure, and some other aspects. In exchange, Russia was supplying them some strategic goods for internal prices – kind of like “employee discount.”
However, the events of last several years have shown that this time is passing. Our neighbors are starting to value the price of their sovereignties higher and higher. And the logic of this process shows that sooner or later these countries will pay Gasprom real money for their sovereignties.
Gasprom presented our former friends with a price-list reflecting cost of their full sovereignties from Moscow/ It is logical that Ukrainian sovereignty is most painful for us and we will make it the costliest by all means. The negotiations have shown that Moscow is not ready to finalize the price. That’s why, instead of realistic price, Gasprom gives Ukraine unaffordable $230 and immediately offers to exchange this price for an access to Ukrainian gas pipe. Only problem is that this pipe for Kiev is part of sovereignty – just like for Vladimir Putin. And this ward is getting more and more expensive.
Kirill Rogov, Deputy Editor-fn-Chief
All the Article in Russian as of Dec. 16, 2005
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