March 2006


The Russian state-owned Gazprom is the largest company and
the biggest natural gas extractor in the world.  It supplies
almost all the gas needs of Central Europe, Eastern Europe, and the former Soviet Union.

Apart from its gas reserves and the world’s longest pipeline network with 150,000km, it also controls assets in banking, insurance, media, construction and agriculture.  Its also had its hand on the tab of the majority of natural gas coming into Europe.

Last year, the dispute between Russian state-owned gas supplier Gazprom and Ukraine over natural gas prices started in March of 2005 (over the price of natural gas and prices for the transition of Gazprom’s gas to Europe). The two parties were unable to reach an agreement to resolve the dispute, and in the depths of an extremely bitter winter, Russia cut gas exports to Ukraine on 1 January 2006 at 10:00 MSK. The supply was restored on January 4, when a preliminary agreement between two gas companies was settled.

(more…)

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