Friday, January 9, 2009

Hug It Out

Gazprom officials are meeting with diplomats in Brussels right now in an effort to hug it out over the ongoing Russia-Ukraine gas dispute -- one of those rare gas disputes that cannot be blamed on the dog.  Russia's conflict with Ukraine over a gas pipeline has caused the loss of heating gas to much of Europe, leaving plenty in the cold.  

Gazprom says they want EU monitors in Ukraine to watch the pipes and ensure Ukraine is not stealing gas en route to Europe.  The EU says they'll do it if both Ukraine and Russia agree to restore the flow of gas to Europe.  

The German paper Deutsche Welle points out that, while cold Europeans are the immediate concern, of a longer-term concern is the reputation of Russia as a reliable provider of gas for Europe (a very similar dispute disrupted flows in 2006).  With Ukraine vying for a spot in NATO, and Russia trying to deny them that spot, Europeans may be better off seeking gas elsewhere.  (Turkmenistan?)     

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