A little while ago, I talked about how the Kremlin was re-socializing Russia. Some people made the argument that the government having control of that type of industry could benefit the country's citizenship. Unfortunately, the Kremlin is now using their control of the oil industry to apply pressure to neighboring countries, who are currently dependent on Russian oil. I can't say much except to say that this is an adverse effect of socialist control of an industry.

EUROPE UNEASY AFTER RUSSIA CUTS UKRAINE GAS SUPPLY

MOSCOW (Reuters) - Russia's decision to sever gas deliveries to Ukraine stirred European fears of a mid-winter disruption to its own supplies, souring Russia's debut as president of the Group of Eight rich nations club.

Russia cut its neighbor's gas supplies on Sunday after Kiev refused to sign a new contract that would have jacked up prices fourfold, ending the preferential treatment of Soviet days.

The row -- which Kiev says is as much about politics as economics -- already seemed to be undermining deliveries to Europe at a time when Moscow wants to showcase its credentials as a reliable source of energy.

Though Russia says it is purely a business dispute, the row has fed concern that the Kremlin could use its huge energy resources as a political weapon.

Western Europe, where demand is near peak levels because of freezing weather, imports 25 percent of its gas from Russia, with most of that delivered by pipelines running across Ukraine.

The Russian state monopoly, Gazprom, said enough gas was still being piped via Ukraine to meet its commitments to other countries. If they were not getting all their gas, it said that meant Ukraine was tapping into it.

Nearby central European countries were already feeling the pinch.

Well, European countries SHOULD be worried. If Russia is willing to increase prices fourfold against Ukraine, they may be willing to do the same thing to other European nations. This will have an adverse effect for all of Europe. Either way, this is just another example of what can happen when countries begin socialist control. Say what you want, but this doesn't seem like a good thing to be. If government control would help control price-gouging, as some say, why is Russia gouging prices for it's neighbors? Socialism doesn't work.