White House criticizes Russia's increase in gas price for Ukraine

[karynnj]

21. I agree that - if this is correct - Tymoshenko really signed a bad deal

- given the claims that this was part of why she faced corruption charges. (ie it is clear this is a bonanza for Gazpron - did she get any klickback?)

The point though is that as Russia is altering (unilaterally the contract), it is fair to ask that it be renegotiated going forward -- and that they get neither a special subsidy or a special tariff - just the market price - 385 - as the WH advises. ( Ukraine may have a bit of leverage (less than Russia of course ) because the pipeline runs through Ukraine and there is no reason (if it can be delivered ) that they cannot purchase gas sent to Europe at 385 - with far less than 100 added.)

One caveat - every explanation of this has been different. As a former statistician, I usually have no problem understanding cash flows. Here, not everything written can be true at the same time. The above reflects many assumptions of what to believe. )