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40 comments on Ukraine-Russia gas spat: some background and context
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40 comments on Ukraine-Russia gas spat: some background and context
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Russia is building pipes to china (far Ural ) and Germany (under baltic sea)
Those pipes will go directly to those countries without going throughout any third country
As soon as they finish it they will be able to change current situation
The pipelines to China won't happen until China accepts to pay market prices for natural gas over the long term, and when they will, they will use completely different gas sources (East Siberia) than the European exports (Western Siberia).
The Baltic pipeline is more a way to get around Poland which is a much more difficult partner than Ukraine, however hard that may be to believe.
Jerome, do you not think completion of the Baltic pipeline will mark a new era in gas supplies to Europe? Will Germany's role as a transit country change? Will prices change as there are less transit countries? Will Poland (and perhaps other countries such as Belarus and the Baltic states) face natural gas shortages either because they cannot afford to pay or because of their political problems with Russia?
I think I read that China was going to front the money to build the pipeline, and then be paid back in gas (I don't recall if it said at what price rate).
But I guess that's the short term deal, not the long term you're talking about.