While the economic importance of oil and gas has diminished over time, these natural resources are still very important factors in economics and geostrategic decision making. In this thread we can discuss topics relating to these important natural resources. I will begin with the following article.
RUSSIA TURKEY AND THE NEW GREEK SIRTAKI
20.05.2015 Author: F. William Engdahl
Column: Economics
Region: Europe
The European Union has an uncanny knack for shooting itself in the
foot these days. Under strong pressure from a Russo-phobic Washington
administration and various Russo-phobic EU governments, Brussels last
year decided to take steps to block the bilateral agreements between
Russia's state Gazprom and EU countries such as Greece and Bulgaria
to buy gas from a new Russian pipeline that was to have been called
South Stream, the southern counterpart to the Gazprom-Germany North
Stream line.
For the neoconservatives in the Obama State Department and Pentagon,
that would have forged far too strong EU-Russia economic ties that
would significantly weaken America's ability to blackmail the EU. The
EU Commission is brazenly violating all legal precepts by trying to
enforce, retroactively, new laws that they claim Gazprom has violated.
Further they forced the weak government of Bulgaria last year to back
out of their Gazprom contract.
Washington's Russo-phobes were gloating as they fantasized about
getting a nuclear deal with Russia's ally Iran that could woo Teheran
to double-cross Moscow and sell Iranian gas from South Pars, the
world's largest gas field, via another pipeline through to Iran's
city of Bazargan at the border with Turkey where it would transit
Turkey on to Greece and Italy.
Unlike the failed US Nabucco gas project which lacked gas, the Persian
Pipeline, were Iran to be foolish enough to let Washington control it,
would have gas, lots of it to weaken Russia's hold on EU gas markets
that were previously supplied via Gazprom via older Ukraine pipelines.
Putin calls EU bluff
As we noted at the time last December, Russian President Vladimir
Putin caught the EU by surprise when he announced cancellation of
the South Stream Gazprom EU project during a visit in Turkey with
President Erdogan. There Putin proposed instead an alternative that
would pipe Russia's gas through Turkey to the door of EU member
Greece. There different EU states could "take it or leave it." The
advantage for Gazprom and Russia is that they would not be responsible
for construction of the needed EU pipelines.
When he announced the decision, he stated bluntly, "If Europe doesn't
want to realize this, then it means it won't be realized. We will
redirect the flow of our energy resources to other regions of the
world. We couldn't get necessary permissions from Bulgaria, so we
cannot continue with the project. We can't make all the investment
just to be stopped at the Bulgarian border. Of course, this is the
choice of our friends in Europe." South Stream would have provided
secure delivery to southern EU countries including Bulgaria, Hungary,
Austria, Italy, Croatia and also Serbia. It would avoid the current
transit pipelines running through Ukraine.
Now less than six months later Russia and Turkey have completed the
landmark deal to begin deliveries of Gazprom Russian gas via a new
"Turkish Stream" pipeline into and across Turkey through a pipeline
now in construction. Gazprom CEO Alexei Miller announced on May 7
that, "An agreement has been made on the beginning of exploitation
and deliveries of [Russian] gas along the Turkish Stream in December
2016." The statement came following Miller's meeting earlier in the
day with Turkish Energy and Natural Resources Minister Taner Yıldız.
The new pipeline will travel through Turkey to a gas hub on the
Turkish-Greek border for further distribution to European customers.
A geopolitical cherry on top
And only minutes after the successful Russia-Turkish agreement, Putin,
reported to be a master chess player, made a master geopolitical chess
move into the European Union disaster that is called the Eurozone.
Greek news outlet, Capital.gr, reported that the very same day
Miller's Turkey Gazprom deal was finalized, Putin had an apparently
very cordial phone chat with Greek Prime Minister, Alexis Tsipras.
After the talk, Putin's office released a statement that Putin had
told Tsipras that Russia would be willing to extend money to Greece
in return for Greek participation in the Turkish Stream project into
the EU. The Kremlin statement said, "In that context, the Russian side
confirmed its willingness to consider the issue of extending financing
to state and private companies that will cooperate in the project."
In Tsipras' April 8 meeting with Putin Russia denied it had made
a deal on energy; that all changed on May 7 after Turkey finalized
Turkish Stream
After Tsipras' talks with Putin in Moscow on April 8, the Kremlin
spokesman, Dmitry Peskov, issued a denial of Der Spiegel reports
that the two had come to an agreement in which Moscow would advance
the cash-desperate Greek government with an immediate â~B¬5 billion
cash advance from Russia based on expected future profits linked
to the pipeline. The Greek energy minister said at the time that
Athens would repay Moscow after 2019, when the pipeline is expected
to start operating.
That was on April 8. Flash forward to May 7 and the finalization
of the Russia-Turkish Stream deal, and it seems now that there is
also a Russia-Greece deal to advance Athens the sizeable cash sum,
just before Athens must come up with large sums to repay IMF and
EU loans in order to get more senseless EU and ECB "support." The
difference was clearly the finalization of the Turkish Stream. Now
EU bureaucrats in Brussels have new gas pains as Putin puts a Greek
cherry atop Moscow's Turkish geopolitical deal on gas.
If the Russia cash advance to Tsipras comes to pass, not only will
Athens be able to dance a Sirtaki. This time it will be a dance
in which the role of Zorba is played by a Russian, Vladimir Putin,
not the Mexican, Anthony Quinn.
Wolfgang Schauble, Angela Merkel, EU Commission President Jean-Claude
Juncker all will have three options. They can decide to stand on the
sidelines and clap to the sensuous rhythms of the new Sirtaki. They
can join in the dance by refusing Washington blackmail on renewing
EU economic sanctions against Russia. Or they can go on to boycott
the dance and sink deeper into a new crisis of the Euro.
The ongoing panic selloff in German bond markets over recent days
suggests it might be wise for the Berlin government to consider an
entire new choreography for its European Grand Strategy. The old
Atlantic NATO dance is rapidly becoming a Danse Macabre for Germany
and for Europe. Putin's Sirtaki would be far more fun for Europe and
the world.
F. William Engdahl is strategic risk consultant and lecturer, he holds
a degree in politics from Princeton University and is a best-selling
author on oil and geopolitics, exclusively for the online magazine
"New Eastern Outlook".
First
appeared:http://journal-neo.org/2015/05/20/ru...greek-sirtaki/
RUSSIA TURKEY AND THE NEW GREEK SIRTAKI
20.05.2015 Author: F. William Engdahl
Column: Economics
Region: Europe
The European Union has an uncanny knack for shooting itself in the
foot these days. Under strong pressure from a Russo-phobic Washington
administration and various Russo-phobic EU governments, Brussels last
year decided to take steps to block the bilateral agreements between
Russia's state Gazprom and EU countries such as Greece and Bulgaria
to buy gas from a new Russian pipeline that was to have been called
South Stream, the southern counterpart to the Gazprom-Germany North
Stream line.
For the neoconservatives in the Obama State Department and Pentagon,
that would have forged far too strong EU-Russia economic ties that
would significantly weaken America's ability to blackmail the EU. The
EU Commission is brazenly violating all legal precepts by trying to
enforce, retroactively, new laws that they claim Gazprom has violated.
Further they forced the weak government of Bulgaria last year to back
out of their Gazprom contract.
Washington's Russo-phobes were gloating as they fantasized about
getting a nuclear deal with Russia's ally Iran that could woo Teheran
to double-cross Moscow and sell Iranian gas from South Pars, the
world's largest gas field, via another pipeline through to Iran's
city of Bazargan at the border with Turkey where it would transit
Turkey on to Greece and Italy.
Unlike the failed US Nabucco gas project which lacked gas, the Persian
Pipeline, were Iran to be foolish enough to let Washington control it,
would have gas, lots of it to weaken Russia's hold on EU gas markets
that were previously supplied via Gazprom via older Ukraine pipelines.
Putin calls EU bluff
As we noted at the time last December, Russian President Vladimir
Putin caught the EU by surprise when he announced cancellation of
the South Stream Gazprom EU project during a visit in Turkey with
President Erdogan. There Putin proposed instead an alternative that
would pipe Russia's gas through Turkey to the door of EU member
Greece. There different EU states could "take it or leave it." The
advantage for Gazprom and Russia is that they would not be responsible
for construction of the needed EU pipelines.
When he announced the decision, he stated bluntly, "If Europe doesn't
want to realize this, then it means it won't be realized. We will
redirect the flow of our energy resources to other regions of the
world. We couldn't get necessary permissions from Bulgaria, so we
cannot continue with the project. We can't make all the investment
just to be stopped at the Bulgarian border. Of course, this is the
choice of our friends in Europe." South Stream would have provided
secure delivery to southern EU countries including Bulgaria, Hungary,
Austria, Italy, Croatia and also Serbia. It would avoid the current
transit pipelines running through Ukraine.
Now less than six months later Russia and Turkey have completed the
landmark deal to begin deliveries of Gazprom Russian gas via a new
"Turkish Stream" pipeline into and across Turkey through a pipeline
now in construction. Gazprom CEO Alexei Miller announced on May 7
that, "An agreement has been made on the beginning of exploitation
and deliveries of [Russian] gas along the Turkish Stream in December
2016." The statement came following Miller's meeting earlier in the
day with Turkish Energy and Natural Resources Minister Taner Yıldız.
The new pipeline will travel through Turkey to a gas hub on the
Turkish-Greek border for further distribution to European customers.
A geopolitical cherry on top
And only minutes after the successful Russia-Turkish agreement, Putin,
reported to be a master chess player, made a master geopolitical chess
move into the European Union disaster that is called the Eurozone.
Greek news outlet, Capital.gr, reported that the very same day
Miller's Turkey Gazprom deal was finalized, Putin had an apparently
very cordial phone chat with Greek Prime Minister, Alexis Tsipras.
After the talk, Putin's office released a statement that Putin had
told Tsipras that Russia would be willing to extend money to Greece
in return for Greek participation in the Turkish Stream project into
the EU. The Kremlin statement said, "In that context, the Russian side
confirmed its willingness to consider the issue of extending financing
to state and private companies that will cooperate in the project."
In Tsipras' April 8 meeting with Putin Russia denied it had made
a deal on energy; that all changed on May 7 after Turkey finalized
Turkish Stream
After Tsipras' talks with Putin in Moscow on April 8, the Kremlin
spokesman, Dmitry Peskov, issued a denial of Der Spiegel reports
that the two had come to an agreement in which Moscow would advance
the cash-desperate Greek government with an immediate â~B¬5 billion
cash advance from Russia based on expected future profits linked
to the pipeline. The Greek energy minister said at the time that
Athens would repay Moscow after 2019, when the pipeline is expected
to start operating.
That was on April 8. Flash forward to May 7 and the finalization
of the Russia-Turkish Stream deal, and it seems now that there is
also a Russia-Greece deal to advance Athens the sizeable cash sum,
just before Athens must come up with large sums to repay IMF and
EU loans in order to get more senseless EU and ECB "support." The
difference was clearly the finalization of the Turkish Stream. Now
EU bureaucrats in Brussels have new gas pains as Putin puts a Greek
cherry atop Moscow's Turkish geopolitical deal on gas.
If the Russia cash advance to Tsipras comes to pass, not only will
Athens be able to dance a Sirtaki. This time it will be a dance
in which the role of Zorba is played by a Russian, Vladimir Putin,
not the Mexican, Anthony Quinn.
Wolfgang Schauble, Angela Merkel, EU Commission President Jean-Claude
Juncker all will have three options. They can decide to stand on the
sidelines and clap to the sensuous rhythms of the new Sirtaki. They
can join in the dance by refusing Washington blackmail on renewing
EU economic sanctions against Russia. Or they can go on to boycott
the dance and sink deeper into a new crisis of the Euro.
The ongoing panic selloff in German bond markets over recent days
suggests it might be wise for the Berlin government to consider an
entire new choreography for its European Grand Strategy. The old
Atlantic NATO dance is rapidly becoming a Danse Macabre for Germany
and for Europe. Putin's Sirtaki would be far more fun for Europe and
the world.
F. William Engdahl is strategic risk consultant and lecturer, he holds
a degree in politics from Princeton University and is a best-selling
author on oil and geopolitics, exclusively for the online magazine
"New Eastern Outlook".
First
appeared:http://journal-neo.org/2015/05/20/ru...greek-sirtaki/
Comment