Monday, January 02, 2006

Russia and Germany Argue Over Gas

In the opening scenes of the new Bond flick.... oh no, wait, it's from Reuters.... Germany warned Russia over its decision to cut off gas supplies to Ukraine. Angered over a four fold price rise (from Soviet era prices) and possible Ukrainian diversion of supplies for it's own use, Russia shut off the flow to Ukraine. It seems unlikely this will lead to violence, but it shows Russia's lack of real movement into the G8 world (Russia assumes the Presidency of the G8 ) and the inherent instability in all the states of the old USSR even a decade on.

UPDATE: Russia has agreed to ship additional gas to Western Europe, responding to (primarily German) pressure.

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