ISSUE: 222
"There is no security on this earth; there is only opportunity."
-General Douglas MacArthur
COLUMNISTS

Cold Weather Thoughts in the Heat of August
By Jim Davis

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We would have to admit that it is very difficult for anyone to concentrate on the winter ahead while wiping August perspiration from the brow. However, no matter how difficult it might be, one has to hope that some in Ukraine's leadership are giving serious thought to the issue of natural gas availability and pricing to consumers, both private and industrial.

When Russia cut supplies of natural gas to Ukraine last January, it provided a severe jolt for many in Ukraine who felt their Slavic brothers to the north would never take such a decision. Even today, some of those who are supporting the anti-administration opposition do so under the illusion that putting a more Russia-oriented government under Viktor Yanukovych into power would make a significant difference in the supply and cost of Russian natural gas in the winter ahead. Perhaps they should awaken to the fact that even Belarus, probably the most Moscow-centric of all the former Soviet states, is getting hit with equally unwelcome and drastic increases in the cost of imported natural gas.

No matter who sits in the prime minister's chair, Ukraine is very likely to deal with natural gas prices that are an increasing burden on the economy. Anyone who doubts Russia's stated intentions of market pricing for natural gas is probably living in a dream world.

And that brings us to an obvious, but very difficult conclusion. If natural gas is likely to increase even further in price, then the time is long past when those in power should lead a sustained and intensive debate about a subject that has never had more than the most cursory of examinations, that of energy conservation.

The seeming inevitability of natural gas prices rises, both from Russia and Turkmenistan, our major suppliers, may force one of the hardest political decisions in Ukraine's independent history. And that decision is that all gas supplied to all users should be metered and that bills for gas should be based strictly on usage.

A higher gas price to consumers is an issue that would probably have large crowds demonstrating outside the parliament. Yet, it is hard to imagine what mechanism other than higher pricing would (1) raise enough cash to keep natural gas imports paid and flowing and (2) encourage lower use by consumers and industry.

Pricing as a vehicle for enforcing greater energy efficiency would be an unpopular option - all the more reason to examine what other options might he available.

Over the months ahead we hope to increase our efforts to make the Observer a forum for discussion of some of the important issues facing Ukraine. Any reader who feels the urge to offer a solution to the natural gas pricing problem - or any of a myriad of other difficult issues is strongly encouraged to commit his or her ideas to paper and submit them for possible publication in the magazine. We cannot guarantee we will use all, but we will certainly attempt to use all possible either as op-eds or in some other way. [See below for submission standards.]

Indecisiveness on both Bankova and Khreshchatyk

In discussions with a person who has been deeply involved with the development of Kyiv for quite a few years, we ran across a matter about which we will comment only briefly here.

The individual spoke out of frustration with the current city administration and specifically Kyiv's new mayor. The person alleged, in an obviously heartfelt statement, that for two months before the election that brought Leonid Chernovetsky to the mayor's chair and for the entire period since his election, it has been almost impossible to get any decision out of the city administration, leading to major projects being put on hold, or even cancelled.

We hope to report more on this issue in the month's ahead and would welcome communication from anyone in Ukraine who has comments, pro or con, on this matter.

Jim Davis is editor-in-chief of the Ukrainian Observer magazine. The comments appearing above are exclusively his own and reflect neither the views of the magazine nor The Willard Group. People wishing to comment on the statements above or any other issue should send e-mail to jim@twg.com.ua. Material submitted for possible publication is subject to normal editing constraints so far as language and length. No communication will be published without the specific permission of the sender. All submissions for possible publication should include name and contact information.



More in the section:
The Workplace: When the Minority Shareholder is a Corporate Bully

Read also previous issue' articles:
RANDOM NOTES: Let's Have Another Holiday
Public Relations Versus Advertising
RANDOM NOTES: Billing by the Hour is Dumb
THE WORKPLACE: Public Relations and Common Sense
THE EAR: Looking Back - and to the Future
THE WORKPLACE: Can't Die? May As Well Work



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The rhymes and reasons of expatriates in Ukraine

COLUMNISTS
The Workplace: When the Minority Shareholder is a Corporate Bully
Cold Weather Thoughts in the Heat of August

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The Orange Revolution's slow dance of death
The Three Magic Reasons for Prosperity of Nations: Does Ukraine Have Them?

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