Russia Profile Weekly Experts Panel: Does Russia?s Gas-For-Fleet Swap With Ukraine Make Strategic Sense and Will It Stand?

Russia Profile Weekly Experts Panel: Does Russia?s Gas-For-Fleet Swap With Ukraine Make Strategic Sense and Will It Stand?

Russia Profile Weekly Experts Panel: Does Russia?s Gas-For-Fleet Swap With Ukraine Make Strategic Sense and Will It Stand?
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Russia?s President Dmitry Medvedev made his first official visit to Ukraine last week to sign a landmark agreement with Ukraine?s new President Viktor Yanukovich to extend the Russian Black Sea Fleet?s lease on the port of Sevastopol for another 25 years in exchange for a significant reduction in natural gas prices for Ukraine. Under the terms of the deal, Russia?s Gazprom will sell gas to Ukraine?s Naftogaz at a 30 percent discount from current prices for ten years. The price reduction, estimated at about three to four billion dollars, will be achieved by cutting Russian export duties, and thus will not eat into Gazprom?s profits.
Source: Russia Profile.org