Russia signs a deal to sell its Gas to China. Surprise. The Chinese were ready to sign before the first commando pushed off for the Crimea. So here are a few strategic considerations.
Europe’s best bet is to wean itself off of Russian Oil and Gas otherwise it will always be negotiating with a financial bully with the morals of a depraved drug dealer.
Depending on the volume of this pipeline Putin and Moscow will not care what Europe does. China will most likely pay in hard western currency.
Moscow will no longer be interested in supplying the international market and will be increasingly viewed as an unreliable supplier with the morals of a street-walker.
But what will happen is that enormous demand will be spoken for. China’s appetite will be partially satiated and the international market does not have the opportunity to bid the price up to meet China’s addictions.
So by removing a piece of insanity do we stabilize in part energy pricing on a global basis.
George Gutowski writes from a caveat emptor perspective.