How can this be good for gas supplies for the rest of Europe?

LATEST Russia will resume gas exports to Europe as soon as EU monitors arrive at gas compressor stations along the route, Prime Minister Vladimir Putin said.

With news breaking that Russia has just suspended all exports of gas to and through Ukraine, what will the impact be on Europe and why has Russia chosen once again to take such drastic action?

Exports of gas from Russia fell 6% between 2006 and 2007 according to the BP statistical review of world energy. Production fell from 612.1 to 607.4 billion cubic meters (bcm) per annum and domestic consumption rose from 432.1 to 438.8 bcm per annum leading to a fall in exported gas.

Is Russia withholding gas supplies leading to higher prices and manipulation of its market position? Or is the Russian gas supply system unable to meet demand?

Yesterday, on the basis of press reports, I noted that the new EU Energy Strategy was depressing, if predictable. But today, the strategy was actually posted on the EU's website (you can find it here, with all supporting documents) and, reading it, I find it much less offensive than the press makes it to be.

For one, beyond an early reference to the current goals of "sustainability, competitiveness and security of supply", there is not a word about competition and market mechanisms in the whole Memo on the Strategic Energy Review (pdf). Not one. I was amazed. In fact, this memo, beyond a bit of fluff that can easily be ignored, is almost sensible!

Let me get you through it.

With his book "Reinventing Collapse", Dmitry Orlov reports to us from a collapse that he has actually experienced with the fall of the Soviet Union. Russia's past is our future and Orlov's book is a time machine to there.