MOSCOW/BEIJING, April 23 (Reuters) – Europe’s plans to reduce its dependence on Russian energy as the Ukraine crisis threatens supplies are spurring efforts by Russia’s top producer, Gazprom, to sign a deal next month to pump gas to China, industry sources say.
The elusive deal, slated to be signed next month when Russian President Vladimir Putin is expected to visit China and seen as vital if Russia is to be a big player in Asian gas markets, would wrap up a decade of talks in which price has been the main obstacle.
“Judging by the speed of work which is under way in Gazprom, I would say that the possibility that the deal would be signed is 98 percent,” a Gazprom source said, adding agreement on what China would pay for the gas was close. [READ THE REST.]
Arseniy Yatseniuk, Ukraine’s beleaguered premier, claims his country is facing not just military aggression from neighbouring Russia, but “another kind of aggression – aggression through its gas supplies”.
Russia’s military intervention in Ukraine is all too real. President Vladimir Putin admitted last week that gunmen who helped Moscow annex Ukraine’s Black Sea peninsula of Crimea last month were Russian. Few western leaders doubt that pro-Russian separatists in eastern Ukraine also include Russian soldiers.
By cutting off gas to Ukraine in 2006 and 2009 amid pricing disputes, Gazprom has hardly endeared itself to Kiev, or to European customers further west – which experienced disruptions to Russian supplies through the massive transit pipelines that run across Ukraine.
Now, paradoxically, Russia seems to be putting maximum pressure on its neighbour’s struggling government, while doing its best to avoid cutting off supplies. [READ THE REST]
Energy has always been central to creating a trade and investment bloc through the Transatlantic Trade and Investment Partnership. If a TTIP agreement can reduce wide differences in energy prices between Europe and the U.S., Europeans will pay less for energy, while American energy producers will finally be able to profit from the recent energy boom by selling at competitive market prices. Trying to artificially hold down prices has heavy costs for domestic producers, encourages consumption, and dampens energy production over… [READ THE REST]