VOG 2005 New Thread

IF nothing else, the ultimate point to bear in mind with VOG vis a vis Gazprom, is that regardless of its proven resources, Gazprom has a total monopoly on piping the gas to market and thereby has a distinct advantage when negotiating the price it pays for VOG's gas. Longer term (similar to the current situation in Ukraine), Gazprom will hold the whip hand over Russian producers who wish to use the new pipeline being built to the EU (via the Baltic Sea and Germany). Even before the pipeline is commissioned (2010), Gazprom will be able to exert significant influence over the prices it negotiates with the producers and the national end users.