Russia and Ukraine settle in gas dispute (for now)

ByRod Adams

As of 4 January 2006, Ukraine has agreed to a natural gas price that is two times the level that it paid last year. Russia has agreed to keep supplying it with fuel at the new price.

Neither side is very happy about the arrangement; Russia wanted the Ukraine to pay a market price that is twice as high as the agreed upon price and Ukraine is now going to have to figure out how to pay Russia about $7 Billion more per year than it did in 2005. The rest of Europe may end up paying higher prices for both gas and oil due to a complex set of contracts that link the prices of both commodities.

You can find a good article about the agreement at Bloomberg.com under the title of Russia, Ukraine Settle Gas Dispute, to Raise Prices (Update2).

Rod Adams
Rod Adams

Rod Adams is Managing Partner of Nucleation Capital, a venture fund that invests in advanced nuclear, which provides affordable access to this clean energy sector to pronuclear and impact investors. Rod, a former submarine Engineer Officer and founder of Adams Atomic Engines, Inc., which was one of the earliest advanced nuclear ventures, is an atomic energy expert with small nuclear plant operating and design experience. He has engaged in technical, strategic, political, historic and financial analysis of the nuclear industry, its technology, regulation, and policies for several decades through Atomic Insights, both as its primary blogger and as host of The Atomic Show Podcast. Please click here to subscribe to the Atomic Show RSS feed. To join Rod's pronuclear network and receive his occasional newsletter, click here.

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