According to Vladimir
Putin, "during the past four years Russia has been subsidizing Ukraine’s
economy by offering slashed natural gas prices worth 35.4 billion US dollars".
However, for the most of the period, the price of Russian gas at the border of
Germany was lower than the one for Ukraine. The German price net of the cost of
transit via Czech Republic, Slovakia and Ukraine was substantially lower all the
time except the first quarter of 2014.
Using Mr. Putin's approach, Russia's subsidies to German economy in
the past four years can be estimated at above $50 billion.
East European Gas
Malvern, PA, USA
May 17, 2014
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