Effect on fertilizer producers

摘要

The dispute started when Russia cut shipments to Ukraine on 1 January after it failed to repay gas supply debts of around $2bn (FW Online, 2 January 2009). The two countries also cannot agree on the new gas price for 2009. Although Gazprom is currently asking for $450/1,000 cubic meters, the firm had earlier offered a rate of $250/1,000 cubic meters. Ukraine's Naftogaz balked at these demands as gas prices are essentially indexed to oil prices, with a six to nine month time lag. Consequently, gas prices can be expected to fall across Europe in 2009, hence Naftogaz proposed $202/1,000 cubic meters.