Streetwise Professor

November 26, 2012

Now That’s What I Call an Outtrade!

Filed under: Economics,Energy,Russia — The Professor @ 1:15 pm

In the futures pits, the bane of traders’ existences was an outtrade-when a trade was submitted for clearing but the buyer and seller couldn’t be matched.  An outtrade could be due to a difference or price or quantity.  The worst kind was when both parties thought they were on the same side of the trade.  Another kind of scary outtrade was when a trader said he bought, but there was no matching sale, or the reverse.

Ukraine and a Spanish company have such an outtrade apparently.  To the tune of $1.1 billion:

Ukraine, keen to show it is weaning itself off Russian gas, announced on Monday it had created a consortium to build a $1.1 billion liquefied natural gas plant, but its reported partner, Gas Natural of Spain, swiftly denied any involvement.

Ukraine said it would build the first LNG regasification terminal within its borders, in partnership with Gas Natural, which would allow it to import gas from all over the world, breaking its dependence on Russia.

But Gas Natural flatly denied signing any deal with Ukraine.

“Gas Natural has not signed any contract to invest in an LNG plant in the Ukraine, nor are we leading any consortium to develop such a terminal… nor are we studying anything along these lines,” the company said in a statement. [Sounds pretty definitive!  No ‘effing way I traded with you lot. I didn’t even think about trading with you lot.]

. . . .

Even after the official denial by Gas Natural, Ukraine’s state investment agency insisted the deal had been signed and said it was looking into the report stating otherwise.

“There must have been some miscommunication,” a spokeswoman for the agency said.

A miscommunication.  Over $1.1 billion.  It could happen to anyone!

As sometime commenter Elmer says, Ukraine is sovok.  It shows, and maybe this is an example of that.  But I wonder if sovok central-Russia-put the word in a Spanish ear.

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  1. This Spanish guy turned out to be not connected at all with Gas Natural, and this is a huge embarrassment for the Ukrainian sovok mafia government.

    It has usually been the sovok mafia Zookrainian government which signs supply contracts with such personages as “Serhiy Nikogda” – Serge Nowhere, sort of like Captain Nemo – Captain Noone.

    The contract signed by Serge Nikogda showed up in a US Federal Court case, but that’s a different story.

    See New York Times article, for example:

    The mention of an “Investment Fund” leads me to believe that someone thought that, in typical Zookrainian sovok mafia fashion, government officials would be getting a cut of the deal.

    For example, the “”Energy Minister,” Boyko, sold a $200 million drilling rig to the Zookrainian government for $400 million through a Latvian dummy corporation, pocketing $200 million. The Latvian dummy corporation was “owned” by a homeless man who knew nothing about it. The rig was supposed to be for offshore drilling in the Black Sea. Boyko has not been brought to justice.

    The swindlers have been swindled.

    Comment by elmer — December 1, 2012 @ 9:40 am

  2. By the way, just so you know –

    One of the players on the Zookrainian side in this fiasco is a guy named Kaskiv.

    He used to be on the “orange” side during Orange Revolution days, with an outfit called PORA – “It’s Time,” similar to organizations in such countries as Georgia, which operated to end commie sovok mafia rule masquerading as some type of “democracy.”

    As was and is typical of many, he sold out for a government position with the Yanukovych/Party of Regions sovok mafia.

    And he used the same justification that all of them used – to “change government from the inside.”

    Comment by elmer — December 2, 2012 @ 8:23 pm

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