"Quand la Chine s'éveillera, le monde tremblera"
Napoleon Bonaparte
The awakening of this old sleeping giant, or more accurately its re-awakening, has led much ink to be spilled and many keys to be worn-down. For many, this phenomenon was of great interest naturally due to China’s huge size and its equally large potential; especially, in contrast to the economically and politically stagnating West. However, for Russia, this re-emergence plays an exceptional role which...
... investment which previously was not required. As we know, more investment means more cost and greater end-consumer price. For Russia, this is especially a major issue as all the loans for developing new fields and constructing new pipes are done via long-term contracts. This is vital for Gazprom, as the lending banks absolutely adore long-term contracts, especially if they are linked to oil. For instance, the Nord Stream project had a queue of 27 banks. For banks these deals are especially attractive ...
Dr. Adrian Pabst is a political theorist and a theologian. He is a lecturer in politics at the University of Kent and a visiting professor at the Institut d’Etudes Politiques de Lille (Sciences Po). His research concerns capitalism, religion, ethics, civil economy, European Union and wider Europe like Russia, Ukraine and Turkey. He is an Associate Editor of the journal TELOS and Fellow of the Centre of Theology and Philosophy. In 2012 Dr. Pabst was appointed a Trustee of the independent non-partisan...
"There is nothing more difficult to take in hand or more perilous to conduct… than to take the lead in the introduction of a new order of things."
– Niccolò Machiavelli
Machiavelli's quote stresses three things. Firstly, it underlines that any new route will likely be perilous. Secondly, it highlights that someone must take the responsibility to direct the nation's path. Lastly, it grants me the chance to include Machiavelli into my blog; for those...
... Europe against China, due to the latters pressure. Russia hoped to supply both markets with its European gas fields, thus making its customers compete against each other (See: Reuters). However, on the brightside Gazprom agreed with China in regards to long-term contracts, thus allowing it to develop the riskier fields as export was more guaranteed. At first, I was sceptical about the deal due to the lack of a solid price and as talks with China (depending on where one starts) stretch 45 years - making ...
... Afghanistan since 2001 and the European Union which has been gaining an interest there since 2006-2007 in an attempt to exploit Central Asia’s need to diversify its energy exports – have impacted upon Russia’s position. Moreover, the E.U. in particular wants access to Turkmen gas and Kazakh oil and gas, as a way to diversify its energy imports and rely less on Russia.
However, the Central Asian states will remain allies of Russia. The ties between the two regions are so close – ...
... message to developing nations in regards to reducing CO2 emissions, which partially due to this move are now increasing in the E.U., it also breeds uncertainty as this flip-flopping makes the European continent less predictable for Russia. A clear distinction ... ... account for industry realities or Russian and peculiarly even its own interests as it is undermining its own energy security.
Long-Term Contracts a No-No:
An area of contention stimulating uncertainty is the debate amid long-term contracts and hub trading ...
... hence prices will rise as basic economics dictate. A further issue is reliable suppliers. For instance the EU has been aiming to agree 10 year long contracts with the Middle East, aside from this being a double-standard as it tends to avoid Russian long-term contracts by saying short-term hub trading without a fixed price is the future, the issue remains that this is not a safe partner (e.g. Arab Spring). Unless a price level of $100-$120 per barrel is reached, Saudi Arabia could fall into political ...
