Krull Corporation's Alexander Mirtchev Discusses Russia-

Ukraine Supply Dispute With Energy and Environment

Television

Energy Expert Tells Viewers That the World Confronts a New Paradigm
When Addressing Energy Policy With Russia

WASHINGTON, DC - As Russia and Ukraine continue their disagreement

over natural gas pricing and shipments to Europe, Russia's growing
assertiveness in the region is becoming very apparent. Alexander Mirtchev,
founder and president of Krull Corporation discussed with Energy and
Environment Television how the Russia-Ukraine natural gas relationship
affects European and American foreign and energy policies and what does
Russia's growing influence in the energy sector mean for the United States,
as well as the underlying factors, determining the unmanageability in the
long run of the Russia-Ukraine natural gas relations in its present iteration
and explained why Europe is likely to face ongoing supply disruptions,
providing no coherent arrangements, reflecting the new XXI century realities,
are established.

Opinions vary widely regarding the causes of the current and previous gas
crises seizing the European continent, and legitimate criticism abounds. In
reality, "there is little doubt a long-term sustainable solution to the recurring
tug-of-war between Russia and Ukraine would require the EU to empower a
single authority to conduct a coherent and coordinated policy and negotiate a
deal with Russia that would reflect the post-Soviet realities. Without some
type of an institutionalized 'energy user association,' on one hand, and a new
paradigm of engagement by Russia on the other, Europe will remain
vulnerable to political and economic cycles in its Eastern neighborhood," Dr.
Mirtchev said. "This new paradigm has been coalescing for some time
despite the significant and occasionally uncomfortable policy adjustments
that it may require form the West and Russia's disdainful conduct in the
global energy markets."

The present situation shows once again that the European nations should
find the way to establish a consistent joint policy of resolving this issue for
the long term, since at present, "they are neither singing in unison nor even
from the same sheet of music. As part of a whole set of issues defining this
critical relationship, the Europeans are now in the position to reach a
coordinated agreement with Russia on energy trade," he indicated.

Dr. Mirtchev continued by discussing the other side of the equation -- what
European nations need to do to engage in constructive negotiations with
Russia to build a common vision of the future. "The new set of policies
should factor in the Russian perspective in earnest; we shouldn't expect the
Russians to lose sight of their own interests, namely, maintaining in one way
or another some strategic competitive advantage through energy resources,
nor could we expect them to be a responsible market player, doing business
as usual, without being a bona fide stakeholder," he said. In addition,
Ukraine should be encouraged to resolve its energy issues with Russia in a
more business-like fashion.

Mirtchev indicated "All of the above obviously requires a completely different

level of transparency, accountability, and, frankly, much clearer, agreed upon
and understandable 'rules of the game,' not to mention curtailing the
inevitable disruptive role of the 'vested interests.'"

Last, but not least, the diversity or sources and routes that could come with
new pipelines and new arrangements obviously "would further stabilize the
situation." He noted that "European nations patently need to diversify their
energy supplies, but this is still little more than a political slogan. Whether
this is going to materialize is a matter of policy and political will. And it would
soon become apparent whether the European nations are able to unite
around a new understanding of XXI century realities, or would end up with
another temporary arrangement, tempted by varying agendas."

Dr. Mirtchev concluded that as a new administration prepares to take office

in Washington, officials must take note of Russia's newly robust role in the
region that is likely to remain in place both during the downturn and the
recovery. "Russia, more or less, is building, or wants to build not only a
prosperous society, but a great state," he told OnPoint's host Monica
Trauzzi. "This is a different equation than the one we are accustomed to here
in Washington. In certain sectors, the relationships could become quite
competitive, and therefore a constructive dialogue should take place." He
indicated that the most important part of such a dialog is that, from a
strategic and historical point of view, both countries are "on the same page."

To view the interview, visit http://www.eenews.net/tv/video_guide/919.

January 17, 2009