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authorities apparently believe that they have benefited from this double taxation through rent-shifting, it is not obvious that this is the case. The analysis for natural gas trade is complicated by the presence of market power on both the selling and buying sides. This paper analyzes whether Ukraine has benefited from the current regime of double taxation and explores the likely economic effect of moving to a destination basis for VAT on energy trade between Russia and Ukraine. Although the paper focuses on Russia and Ukraine, the topic is of broader interest, as VAT

Mr. Bright E Okogu
This paper discusses the rising profile of natural gas in global energy, factors constraining its further development, the gas contracting process, and the absence of a global market, which is analyzed in the context of the economic rent in the gas price and the opaque nature of gas contracts. A proposal for rationalizing the trade to ease these constraints is offered. Gas pricing, and factors driving demand are also analyzed using evidence from the literature. FDI can help to monetize some of the 'stranded' gas reserves, but success would depend on an investor-friendly climate, including appropriate tariff regimes in the domestic markets.