SMRs and AMRs

Wednesday, January 14, 2009

Gas Dispute Runs Deeper Than Pipes, Experts Say

Memo from Moscow

By ANDREW E. KRAMER
NYT

MOSCOW — The feud between Russia and Ukraine over natural gas prices and transit fees has left large swaths of Europe without heat. Yet, what is baffling is that the dispute has always seemed overly technical and easily resolved, if there was the slightest desire on either side. After all, both countries stand to profit from selling fuel to Europe.

The latest agreement collapsed Tuesday, in a familiar cacophony of complaints and countercomplaints, and again over a seemingly trivial issue. With European Union monitors along the pipeline to make sure that Ukraine did not divert any gas for its own use, Russia agreed to resume shipments to Europe.

But rather than repressuring the Ukrainian pipeline system for exports, Russia’s gas monopoly, Gazprom, ordered a single test shipment to see if it would pass through Ukraine to Europe, through a pipeline that was being used to supply the Ukrainian city of Odessa. Ukrainian authorities refused, saying they did not want to cut supplies to their own people, and Russia again halted shipments — not, some experts believed, reluctantly.

Political experts say that neither side is motivated to settle the dispute, because it has never been about the stated issues. Instead, it has been a proxy for far more fundamental and insoluble matters, particularly Ukraine’s 2004 turn to the West in the “Orange Revolution,” which deeply shook Russia’s nationalists.

(More here.)

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