• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Bandersnatch Research 'Observations' Newsletter Examines Russia's Dispute With Ukraine Over Natural Gas Prices

Posted on: Tuesday, 10 January 2006, 15:00 CST

BOZEMAN, Mont., Jan. 10 /PRNewswire/ -- Bandersnatch Research examines the causes and likely outcome of the natural gas price dispute between Russia and Ukraine in 'Observations', its free weekly newsletter that helps connect the dots for investors and researchers interested in the energy industry. The following excerpt from the January 4, 2006, edition of 'Observations' leads off the discussion.

Russia's state-controlled natural gas monopoly, Gazprom, has been making headlines all through 2005. First, Gazprom was going to acquire Rosneft, Russia's largest oil company; then it changed its plans; then it did acquire Sibneft, Russia's fifth-largest oil company; then it announced a new gas pipeline to Europe; then it loosened its rules on foreign ownership; and, finally, it got into a spitting contest with Ukraine over natural gas pricing. Any one of these would be a big story on its own, but taken altogether, the clear signal is that Gazprom is seeking world domination -- well, maybe something resembling world domination. And 2006 looks like it's going to be another banner year. On January 1, 2006, Gazprom lowered by up to 40% the amount of natural gas it puts on the pipeline that carries gas through Ukraine to Europe. Germany, Russia's biggest customer for gas, has been especially critical of Gazprom's cutoff; energy minister Michael Glos essentially called for Gazprom (and Russia) to grow up and act responsibly. Even the U.S. State Department has questioned Russia's actions, calling the gas cutoff a "use of energy to exert political pressure". Apparently the lights have been on in Berlin and Washington, but no one's been home. There should be no surprise at Gazprom's actions. The company, through its own executives and Russia's President Vladimir Putin, have been telegraphing this move for months. Even though it was predictable, and even though Gazprom later returned the flow to the pipeline, the reduction in gas flow is bringing some aspects of Gazprom's, and Russia's, overall strategy into sharper focus.

Go to http://www.bandersnatchresearch.com/historical_observation.asp to read the full newsletter and sign up to receive the free weekly email newsletters, including tomorrow's edition on carbon trading.

Bandersnatch Research LLC offers investors and researchers clean, concise, accurate, unbiased news on the oil and gas industry, presenting it in a unique visual format. More information is available at http://www.bandersnatchresearch.com/.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050805/LABANDERLOGO)

Photo: http://www.newscom.com/cgi-bin/prnh/20050805/LABANDERLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

Bandersnatch Research LLC

CONTACT: Observations Newsletter, Paul Ausick of Bandersnatch ResearchLLC, +1-406-586-4549, paa@bandersnatchresearch.com

Web site: http://www.bandersnatchresearch.com/

Source: PRNewswire

More News in this Category