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Russia's Push to Take Naftogaz -- and Ukraine.
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- Abstract:
Ukrainian Prime Minister Nikolai Azarov acknowledged that his newly elected pro-Russian government was seriously considering Moscow's proposal to merge its state-run behemoth Gazprom with Ukraine's national energy company Naftogaz. Russian Prime Minister Vladimir Putin announced the proposal Friday, and has since issued daily reminders to Ukraine that this is a plan Moscow is seriously -- if not forcibly -- pushing. Naftogaz is not a run-of-the-mill energy company. It controls the natural gas system and retail natural gas market in Ukraine and the pipeline network that Russia uses to transport 80 percent of its natural gas to Europe. The accumulated transit fees generated by the network account for Ukraine's single biggest source of income.
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