‘Moscow ends up at risk with Ukraine gas agreement’

Get short URL <http://rt.com/op-edge/201135-gas-ukraine-russia-eu-price/>  

Published time: October 31, 2014 13:51 

 

Russian Energy Minister Alexander Novak (2nd L) and Ukraine's Energy and Coal 
Industry Minister Yuri Prodan (2nd R) shake hands as European Commission 
President Jose Manuel Barosso (3rd L), EU Energy Commissioner Gunther Oettinger 
(C), European Commission vice-president Miros Sefkovic (3rd R), CEO of 
Naftogaz, Andriy Kobolev (R) and CEO of Gazprom, Alexey Miller (L) look on, 
after signing an agreement at the European Union Commission headquarters in 
Brussels on October 30, 2014. (AFP Photo)

It is not clear what Moscow gets out of a deal with Ukraine by selling gas 
below market price, and guaranteeing supplies to Europe while there are still 
sanctions and anti-Russian propaganda, Paul Roberts, former Assistant US 
Treasury Secretary, told RT.

RT: How important is this deal 
<http://rt.com/business/200951-gas-russia-ukraine-deal/>  for Ukraine and 
Europe? 

Paul Roberts: It is not clear what the Russian government gets out of it. They 
have agreed to sell gas to Ukraine at a subsidized price, far below the market 
price. And yet Ukraine continues to carry on propaganda against Russia, 
continues to attack the Russian population in eastern and southern Ukraine. 

Alexander Mercouris, international legal expert, on the latest 
EU-Russia-Ukraine gas agreement: “I don’t think [the IMF] had any choice. They 
didn’t want to get down this road. But the alternative would have been 
absolutely awful: it would have been large parts of Europe without gas come the 
middle of winter, and that would have been utter and complete disaster. “ 

RT: But getting away from those attacks how significant is this deal for Europe 
and for Ukraine, did they walk away winners in this? 

PR: Of course Europe and Ukraine walks away and Russia is a loser. Here you 
have Russia subsidizing the countries that are imposing sanctions on it, trying 
to destroy Russia. 

RT: Some experts say that Russia is a winner in this situation? Do you agree 
with that? Is this a good price for gas? 

PR: Why is a hundred dollars below the market price a good price? Furthermore, 
there is no guarantee that Russia will ever be paid. If they are not going to 
be paid, what are they going to do? They are going to cut off the gas in the 
middle of the winter so that Washington propaganda can say: “Look at these evil 
Russians, they are starving, freezing Ukrainians, the gas is cut off!” I don’t 
think Russians understand what they are dealing with. Washington is far more 
devious and sophisticated then Russia can comprehend. This is not that Russia 
has a chance. 

Alexander Mercouris, international legal expert, on the latest 
EU-Russia-Ukraine gas agreement: “Ukraine is broken largely because the EU 
broke it through the policies it has followed over the last year, and now 
Europe has to pay for that… I don’t think financially they are very happy about 
it, but realistically, what choice did they have.” 

RT: But it is not Ukraine that is going to pay this money to Russia. The EU and 
IMF have said they're ready to finance Kiev's debt to Russia. But the Ukrainian 
economy is in tatters. Can they expect to get the money back? 

PR: If the IMF pays the Ukrainian bills it takes it back out of Ukraine. This 
is not a gift to Ukraine. If the Ukrainian economy blows up - which is likely 
to be the case – the IMF sees it is not going to be paid because Ukraine can’t 
pay. Russians won’t be paying. 

RT: Russia is having economic problems of its own. Is this agreement a positive 
step for Moscow too? 

PR: I think Moscow ends up at risk with this agreement. Washington is very 
interested in doing all the damage it possibly can to Russia because Russia is 
a potential check on Washington’s hegemony over the world. So for all the 
prices falling is good as far as Washington is concerned. I think it is foolish 
for the Russians to let their currency be traded at foreign exchange markets 
because Washington can attack the ruble and the exchange markets and drive it 
down. Just as George Soros did. One person was able to destroy the British 
pound. Washington can easily destroy the ruble. I still don’t think Russians 
understand what they are up against; they are not really in the game. Vladimir 
Putin is a good leader and he gives good speeches, but he doesn't seem to be 
able to prevent the continuing assaults on Russia. Despite giving Ukraine a 
subsidized gas price, despite Russia guaranteeing energy supplies to Europe in 
the winter, there is no reduction in sanctions, there is no stop in the 
propaganda against Russia. In fact the propaganda has increased because 
Washington is afraid that Russia might gain some advantage from treating 
Ukraine in such a kind way. What is Russia gaining out of this? It is not 
getting anything. Here is Russia with a power to turn energy off in Europe. It 
doesn’t use it, it doesn’t say to these countries in Europe: “Look, if you are 
going to put sanctions on us, if you are not going to have an independent 
foreign policy, if you are going to follow Washington’s orders - we don’t sell 
gas to NATO members.” 

http://rt.com/op-edge/201135-gas-ukraine-russia-eu-price/



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