Paper Derecho

Páginas: 5 (1228 palabras) Publicado: 28 de febrero de 2013
Winter is the coldest time of the year on the north side of the world where North America, Europe and Asia are hardest hit by the cold wave that occurs every year with an increase in intensity. It is precisely in this period where the consumption of energy, especially natural gas, increases by the use of heating in all homes and businesses. It seems that for some countries it is almostimpossible to endure a winter without any type of heating.
The gas being a source of non-renewable energy for this kind of climate, has caused a huge trade dispute that took place between Russia, the second largest gas producer and exporter worldwide par excellence with a capacity of supplying 20% of the global market due to its proximity with the rest European countries; and Ukraine, the main strategicpartner in charge of the gas distribution, as be located in south-western represents the union between Russia and the Eurasian continent (exhibit 1), in early 2006; making that an entire continent can suffer gas shortages thus affecting the whole population.
The company responsible for the extraction, production, marketing and export of gas to other countries is the state-owned GAZPROM(Exhibit 2),which dominates the gas supply in Europe, has been supplying Ukraine in preferential conditions due to the history inherited of the URSS
The company wanted the tariffs paid by Kiev reflect the new gas situation but Kiev reacted taking a part of the 80% of the gas which crosses his territory producing a decrease of the supply in the rest of the continent, this situation could alert about a hugeconsequence which Russia had to control.2
Russia had long been exporting gas to mainland Europe and Ukraine was the necessary bypass. This country had some benefit with regard to price it paid for the gas imported from Russia, but over the years, the price of gas was gradually increased to near market price.
The Siberian gas war ended exploit in 2006 when Russia, in a unilateral decision,decided to increase the price of gas to Ukraine. The new price was five times higher than the previous year.
Obviously, the Ukrainian authorities refused the new price saying that it had not gone through a consensus between both countries. Russia did not accept the refusal of the country and decided to shut off the supply of gas across Ukraine, which obviously involved indirectly in the European Union(EU)*, since as already explained above, the link between gas from Russia and the EU is Ukraine.
Series of conflicts occurred since then; because Ukraine was not always agree with the prices set by Russia and came to this country in default. The last thing that happened early last year was to be one of the most serious incidents since led to a shutdown of gas supply for more than two weeks at atime where it is consumed the most.
The country begun a complaint at the International Court of Arbitration in Stockholm(Exhibit 3) in order to ensure that Ukraine, through its state company Naftogaz, allow free transit of gas to Europe since the blockade was only for this country since for Russia was not convenient that their sales to the European market were being blocked by a bi-national tradedispute.
After a long journey of meetings between Russia and Ukraine in search of a resumption of gas supplies to Europe, they reached agreement on tariffs for Russian fuel for Kiev. The agreement generated was that Russia would sell its gas to Ukraine at a price 20% below the market price in 2009 and from 2010, Ukraine would have to buy oil at market price.
Nowadays, the president of Russia,Vladimir Puttin has promoted the construction of a pipeline that will transport natural gas from Moscow to the rest of Europe without passing through foreign territory in Ukraine, across the Black Sea to Bulgaria from the center of this continent (Exhibit 4) where this resource will be divided equally, according to the critics, the pipeline will increase Europe's dependence on Russian energy, but...
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