The Oil Drum | The Evolving situation between Russia, Belarus and Azerbaijan

39 comments on The Evolving situation between Russia, Belarus and Azerbaijan

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alan on January 9, 2007 - 9:28pm

I have a hard time feeling sympathetic toward the Russian's clams.

Russia only pays Turkmenistan $65 per tcm for its NG and sells it to Europe for over $200 per tcm. Turkmenistan doesn't like it but has to live with it because it is currently the only way they can export NG.

Now the Russians are objecting because Belarus is retaliating for a unilateral increase in prices by doing to them what Russia is doing to Turkmenistan.

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LevinK on January 9, 2007 - 10:16pm

Nobody forces or blackmails Turkmenistan to sell its NG. If they invest in pipelenes as GasProm did they can get the price they want. In contrast forcing your supplier to pay unprecedented charges by stealing his produce and sabotaging his relationship with his partners is an outright blackmail IMO.

There is also another thing you are missing. Gazprom exports to Europe for ~$230/tcm, but 3/4 of its production is sold internally in Russia for ~45$/tcm. Thus the average price it earns is ~$91/tcm and it can be argued that it charges only $26/tcm for Turkmenistan using its infrastructure.

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dissident on January 9, 2007 - 11:53pm

Russia pays Turkmenistan $100 per tcm and not $65. Turkmenistan is in the process of bringing its prices closer to market levels.

http://www2.pravda.com.ua/en/news/2006/9/6/6301.htm

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39 comments on The Evolving situation between Russia, Belarus and Azerbaijan

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