Gazprom Warns Tymoshenko Not To Touch Gas Agreement

Gazprom issued a statement last night saying that Yulia Tymoshenko’s intention to renegotiate Ukraine’s gas supply agreement with Russia threatens the stability of supplies to Europe. Tymoshenko said yesterday she would seek “friendly” renegotiations, but Gazprom said her “threat” was “a path to a new gas crisis.” Concorde Capital: Gazprom’s quick and harsh reaction is aimed at discouraging the Europeans from aligning with the US on this issue at next month’s G8 summit. The US is actively encouraging Ukraine to seek a renegotiation; the Europeans have been neutral. If Tymoshenko aims for lower prices, we doubt she will succeed. If she aims at a long-term agreement with a transparent price methodology that could be a great achievement.