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NATURAL GAS GEOPOLITICS 12/02/2008 |
(2008-02-12) |
Last updated: 2008-02-13 15:40 EET |
In 2004 Romania paid 141 dollars for one thousand cubic metres of natural gas. Now Romania is paying 380 euros. Then, as now, gas was imported from the Russian group Gazprom. One could say that this price is due to developments on the international market. But one might also wonder why our Bulgarian neighbours only pay 200 euros for one thousand cubic metres of gas, coming from the same source?
Back in 2004, the price of domestic natural gas was 80 euros, while today it reaches almost 200 euros. There is also the suspicion that this price does not even cover production costs. Consequently, European commissioner Leonard Orban warned that:
“Given that the price of gas is lower than the production cost, the problem is not only that companies are registering losses, but indirect subsidies are also used. State aid is granted to companies operating on Romanian territory, which is not compatible with community aquis. That is a serious matter and it could lead to lawsuits for violating the accession treaty.”
An ordinary citizen currently pays for the same gas consumption two and a half times more than in 2004. Mihai Tudose, Chairman of the Economic Policy Commission in the Chamber of Deputies, believes Romania is paying more than other countries for the Russian gas because relations between Bucharest and Moscow have cooled off since Traian Basescu was elected President of Romania:
“Inter-state trade relations are also based on more or less influential political relations.”
Romanian Foreign Minister Adrian Cioroianu seems to share that opinion. At the recent Security Conference in Munich the minister said that the price paid by Romania was directly linked with the country’s policy. The official also mentioned the analysis made by some newspapers, according to which Moscow was upset by Traian Basescu attending Georgian President Mihail Saakasvili’s inauguration ceremony in January. Attending the Munich conference, Russian Deputy Prime Minister Serghei Ivanov said there was no connection between gas price and politics.
As oddly as it may seem, Ivanov’s statement enjoys at least an indirect support in Romania. Economic analyst George Vulcanescu:
“We are obviously paying a gas price higher than other countries because we do not import directly and we do not have a direct relationship with Gazprom. We are buying through intermediaries.”
Many hope the solution might be the Nabucco Project, a pipe line transporting gas from the Caspian Sea area to Europe, going round Russia, but also the suggested prices. But Nabucco would become a fact as early as 2012-2013.
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