Russia Turns the Price of NatGas Up

In my last blog, I finished by saying that I thought that Russia would use its natural gas leverage on Ukraine.  That is being born out.  Russia has used natural gas leverage on Ukraine twice - 2006 and 2009.  According to NYT today, Russia is now asking approximately $500 per 1,000 cubic meters of gas, which is about one-third higher than what Gazprom charges clients elsewhere.  This is just the beginning of economic pressure on Ukraine.