Russia Restores Most of Natural-Gas Flow

Haven't they done enough harm already?

Gazprom is the Russian government's largest energy policy instrument - though the company sometimes insists it operates only on business principles. The loss of fuel, if it persists, could shake Ukraine's economy the way the 1973 oil embargo helped plunge the United States into recession. Ukrainian officials said the loss could reverse its modest economic growth to cause a contraction of between 4 and 5 percent this year.

The dispute involves complex arguments by Gazprom, which says the price it wants to charge Ukraine is based on the prices of competing fuels, like diesel and bunker oil, on international exchanges. But not far below the surface, there is the embarrassing loss of a Kremlin-backed candidate in last winter's Orange Revolution.

posted by Ace at 03:14 PM

| Access Comments