FACTBOX: RUE: A mystery player in Russia-Ukraine gas row
(Reuters) - Most of the European countries experiencing lower Russian gas supplies because of Moscow's dispute with Ukraine, are clients of RosUkrEnergo, an intermediary that has aroused controversy since its creation.
Poland, Romania and Hungary all receive part of their gas supplies from the Swiss-based joint venture, rather than directly from Russian gas giant Gazprom, as does for example Germany.
Since being founded in 2004, RosUkrEnergo (RUE) has also become the exclusive intermediary for Ukraine's gas imports. Gazprom says it needs the intermediary to manage complicated supplies, which come from different sources.
But Gazprom's critics, including its minority shareholders, say they still do not understand why RUE, Gazprom's 50/50 joint venture with two Ukrainian businessmen, is needed as its presence raises questions about the distribution of profits.
Following are the key facts about RosUkrEnergo:
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WHAT IS IT?:
Swiss-based RUE was founded in July 2004. From 2006, Ukraine has been importing mostly Central Asian gas exclusively from RUE, which buys gas from producers in Central Asia and Gazprom and sells it to Ukraine and some European Union consumers.
Ukraine consumes 70-75 billion cubic meters of gas a year and imported 47.9 bcm at a cost of $8.61 billion in 2008.
OWNERSHIP:
Gazprom owns 50 percent and Vienna-based Centragas Holding AG owns the other half.
Ukrainian businessman Dmitry Firtash's Group DF (GDF) owns a 90 percent stake in Centragas Holding AG. Firtash's Ukrainian business partner, Ivan Fursin, owns the other 10 percent in Centragas Holding AG. That gives them respectively control of 45 percent and 5 percent in RosUkrEnergo.
CONTROVERSY:
Prime Minister Yulia Tymoshenko, battling President Viktor Yushchenko, wants RosUkrEnergo abolished. She has repeatedly said that RosUkrEnergo is "a corrupt intermediary" which is protected by top politicians.
RUE has denied allegations that top Ukrainian or Russian politicians have commercial interests or benefit from its activities.
Though Yushchenko has only rarely commented on the intermediary, he has recently given signals that he would not oppose its abolition. Continued...
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