June 2010 Vol. 237 No. 6

Projects

Russia Offers To Merge Gazprom With Naftogaz

Closer ties have emerged between Russia and Ukraine since Viktor Yanukovich was Ukraine’s president in February including agreements on gas pricing. Now Russian Prime Minister Vladimir Putin has proposed a merger between the two countries’ natural gas companies in a move that would give Moscow control of both nations’ gas transit to Europe. The deal would hand Moscow control of the major gas pipelines which run through Ukraine to supply Europe, as well as a lock on Ukrainian domestic gas supplies. Owned by the state, Naftogaz is the exclusive importer of Russian gas into Ukraine and about 20% of the EU’s gas needs flow through its pipelines. Naftogaz&#

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