Posts Tagged ‘Russian gas exports’

Putin’s energy strategy for isolating Ukraine

July 6, 2015

Hat tip to Vineyard of the Saker.

Gazprom North StreamPresident Putin has made an agreement with Germany, and offered an agreement to Turkey, that will enable Russia to serve its natural gas markets in western Europe while retaining the option to shut off Ukraine, Poland and the Baltic states.

The Russian government plans to expand its North Stream pipeline across the Baltic Sea directly to Germany.   This would enable Russia to cut off natural gas to Ukraine and most of the rest of eastern Europe without interrupting its sales to western Europe.

Germany, which is now the financial hub of western Europe, would become the energy hub as well.

black_sea_turkey_south_streamRussia has an alternate plan, the South Stream, a pipeline to cross the Black Sea to Bulgaria, but this has been canceled.  Instead Russia now hopes to build a Turkish Stream, which would connect directly with European Turkey.  Greece and other European countries would have the option of connecting to that pipeline.

The Turkish government also has the ambition of becoming an energy hub.  It is in a good position to do this because of its position as the crossroads between Europe and the Greater Middle East.  But, for political reasons, Turkey might have to give up plans for other pipelines to connect to Iran, Iraq and Azerbaijan if goes along with Russia’s Turkish Stream.

Not everything that is announced gets built, and in any case construction of these pipelines would take several years.   But Putin’s strategy could put Russia in a powerful position in regard to Ukraine and NATO’s eastern flank, and without firing a shot.

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Don’t back Russia into a desperate corner

December 22, 2014

Bank+exposure+to+Russia

It is a grave mistake to put President Vladimir Putin or the leader of any nation with nuclear weapons into a situation in which they think they have nothing to lose.

I wrote a post Wednesday on the danger of nuclear war with Russia.  Pepe Escobar pointed out that Russia has other means of Mutually Assured Destruction.

eruopeanbankexposuretorussia pmOne would be to default on Russia’s debts, or even suspend payment on the debts, pending the end of the current emergency.  This would threaten major banks in Western Europe that have extended credit to Russia.

Another would be to cut off gas exports to Ukraine and the countries of the European Union.

Either of these things would hurt Russia as much as it hurts Russia’s enemies.  Russia needs credit, and Russia needs foreign markets.

But if the country has been brought to the brink of collapse anyway, then its leaders have nothing left to lose by striking back.

gassuppliedbyrussia (more…)

Europe’s alternative to Putin’s oil and gas

October 20, 2014

gasSupplyAndDemand

Map: Global Research

Dependence of key European nations on imports of Russian oil and gas puts the European Union in weak position in relation to Vladimir Putin.

One way to get out of that position of weakness is to end the sanctions against Iran, and import Iranian oil and gas.  In the longer run, Europe would benefit from a new gas pipeline from Iran to Europe.

The European Union has no conflict of interests with Iran.  It is following the lead of the United States.  As far as that goes, the United States has no conflict of interests with Iran.  We Americans are merely nursing old resentments and following the lead of Israel and Saudi Arabia.

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Breaking Europe’s Putin addiction by Amir Handjani for Al Jazeera.