Taking the long view - European energy and Russian gas

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An interesting looks - Pooty-Poot may have gambled a bit too much by demanding payment in Rubles.
From Fortune/MSN:

Gazprom ‘blackmail’ backfires as EU vows to end energy dependence on Russia
A gamble by Kremlin-backed Gazprom to “blackmail" Europe into paying for gas in rubles shook markets but may have backfired, as Brussels vowed to end its Russian energy dependency.

Benchmark prices for Dutch TTF gas futures surged well over 20% after Gazprom said it would cut Poland and Bulgaria off, warning other European countries they, too, could be affected if they tried to help.

The stunt was all the excuse EU Commission President Ursula von der Leyen needed to justify her decision last month to strike new import deals for liquified natural gas from reliable allies including the United States.  

“It comes as no surprise that the Kremlin uses fossil fuels to try to blackmail us,” she told reporters on Wednesday. “But Russia is only hurting itself.”

A few months of pain until the new deals are struck but Russia's actions will be remembered and will not longer be counted on as a major supplier. Ever.  Russia has very little hard currency and the energy exports was one of their reliable sources. Putin gambled and seems to be losing.  Bet he wishes he could turn back the clock a year or two.

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This page contains a single entry by DaveH published on April 27, 2022 10:35 AM.

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