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Here’s a fascinating story from NPR (audio file). Gazprom, the Russian state-controlled natural gas monopoly is raising prices in Ukraine by 300%. This is an obvious revenge move due to last year’s anti-Kremlin Orange Revolution.

I’m not trying to be an alarmist but this company is bad news. I’m surprised it hasn’t made more news in the West. Gazprom is basically the KGB is the form of an energy company. It’s incredibly powerful in Russia. The company accounts for 8% of Russia’s GDP, and 25% of its tax revenue. Imagine if one company were that powerful here.

Here’s an example of how Gazprom plays. Last year, they got into a fight with Belarus, so they shut off all gas supplies in the middle of winter. The company is now the third-largest owner of oil in the world, behind Iran and Saudi Arabia. I don’t know who to fear more. I guess I’ll go with the Holocaust-denying nuke crowd, but that really doesn’t narrow it down.

Ukraine could respond. Gazprom supplies gas to much of Europe and those pipelines run through Ukraine. This could get nasty. Get used to hearing more stories like this.

Posted by edelfenbein at December 22, 2005 1:02 PM