Moscow´s homemade energy crisis in Europe: Energy expert : putin´s dirty game

[Litwin]

MY fav energy expert speaks
Mikhail Krutikhin, co-founder and leading analyst of RusEnergy, an independent consulting agency based in Moscow,:

Moscow´s homemade energy crisis in Europe: energy expert : putin´s dirty game​

 

[fncceo]

If Europe doesn't want Russian oil, they shouldn't buy it.

 

[Litwin]

If Europe doesn't want Russian oil, they shouldn't buy it.

we work on this, but moscow horde pays huge bribes, if you follow Israel politic you´d know it well

Is Putin’s Kremlin subverting Israeli democracy? A Russia expert thinks so

A devastating, complacency-shattering interview with Ilya Zaslavskiy, one of the world's leading experts on Moscow's overt and covert designs on the West

www.timesofisrael.com

 

[Litwin]

If Europe doesn't want Russian oil, they shouldn't buy it.

China can not give to Moscow what they want , only we (EU) can do it, we have the huge leverage


The volume of natural gas the Power of Siberia is to deliver in 2020 will be just a modest 5 billion cubic metres (bcm) per year, less than two percent of China’s national consumption. Even if (and this is a very big “if”) the pipeline reaches its full capacity of 38 bcm by 2025, it will contribute just about nine percent of China’s expected gas demand, at best. This is a far cry from Moscow’s dream of making China dependent on Russian gas deliveries.

Unprofitable project ​

....

take more than 10 years, according to Gazprom’s pre-feasibility study of the project.


... project which currently stands at $55bln. In 2014 Gazprom invited its Chinese counterparts to co-finance the Power of Siberia and even announced that China agreed to provide up to $25bn , but it turned out to be wishful thinking .


In May 2018, Sberbank CIB investment advisory group released a report which put under question the profitability of the project.


...


...Putin announced that in the future Russia’s eastern gas pipelines would be connected to the western grid and it would be possible to switch the export flows from Europe to China and back depending on “the situation on the international market”.


....Power of Siberia project, however, has a limit of 38 bcm


Having a Chinese company as a single buyer of Russian gas at the far end of a very expensive pipeline is a big risk that erodes the possible commercial gains of the project.


CNPC has already proved to be a tough and capricious client. When another Russian state-owned energy giant, Rosneft, started delivering crude oil to China via a cross-border branch of the newly-built Eastern Siberia Pacific Ocean (ESPO) pipeline in 2011, the Chinese demanded a discount on the price and got what they wanted despite Russian protests . The same sort of behaviour is expected in the relations between CNPC and Gazprom. The single buyer enjoys a strong leverage in any argument.

Power relations​

....


....Russian exports to China, but today their share is 5 percent . On the other hand, 48 percent of Chinese exports to Russia are electronic appliances, machinery and tech equipment.


While Russia receives over 20 percent of all imported commodities from China, 2.5 percent of Chinese imports come from Russia. This is a one-sided trade relationship, which can hardly be corrected in the foreseeable future, especially given that Moscow continues to insist on boosting energy and mineral resource exports to China.


Thus the Power of Siberia – even if it appears as a great achievement on Russian TV screens – will not give Moscow a stronger hand in its relations with Beijing.

Power of Siberia or power of China?

How will the new gas pipeline between Russia and China affect the dynamics of their economic relations?

www.aljazeera.com