🏷🛢 After prolonged elite discussions (and disagreements) within Western executives, the EU, the G-7 and Australia decided to cap the purchases of Russian seaborne oil to $60 per barrel.
Ukraine itself – not to mention Poland – argues that the West should stop purchasing hydrocarbons from Russia altogether, further privileging the sale of expensive American LNG to Europe. This is a false debate and a wrong policy.
The debate is false for multiple reasons, three of which stand out:
1️⃣ First, American LNG is not enough to fuel Europe’s economic and social infrastructure.
2️⃣ Second, LNG imports require construction of special tankers and terminals, which Europe has just start building.
3️⃣ Third, Russia has already begun diversifying its crude oil and gas exports to Asian markets, especially China and India, making new agreements and building new pipelines.
The USA, looking after its own self-interest, protects its economy from global inflationary trends, whereas, on the other, Russia turns to China, India and even Turkey to substitute for its relative loss of the European energy markets. No doubt, the big loser of the Ukraine conflict is the EU, writes Valdai Club expert Vassilis Fouskas.
https://valdaiclub.com/a/highlights/the-russian-predicament/
#EconomicStatecraft #energy #energycrisis #pricecap
@valdai_club
Ukraine itself – not to mention Poland – argues that the West should stop purchasing hydrocarbons from Russia altogether, further privileging the sale of expensive American LNG to Europe. This is a false debate and a wrong policy.
The debate is false for multiple reasons, three of which stand out:
1️⃣ First, American LNG is not enough to fuel Europe’s economic and social infrastructure.
2️⃣ Second, LNG imports require construction of special tankers and terminals, which Europe has just start building.
3️⃣ Third, Russia has already begun diversifying its crude oil and gas exports to Asian markets, especially China and India, making new agreements and building new pipelines.
The USA, looking after its own self-interest, protects its economy from global inflationary trends, whereas, on the other, Russia turns to China, India and even Turkey to substitute for its relative loss of the European energy markets. No doubt, the big loser of the Ukraine conflict is the EU, writes Valdai Club expert Vassilis Fouskas.
https://valdaiclub.com/a/highlights/the-russian-predicament/
#EconomicStatecraft #energy #energycrisis #pricecap
@valdai_club
Valdai Club
The Russian Predicament
The USA, looking after its own self-interest, protects its economy from global inflationary trends, whereas, on the other, Russia turns to China, India and even Turkey to substitute for its relative loss of the European energy markets. No doubt, the big loser…