Russia’s Energy Diplomacy Brings Geopolitical Dividends

October 11, 2019/in /by Rudolf Huber

The Russian position is not nearly as comfortable as suggested in this article. North Stream 2 comes late and is not quite as cheap as touted. Lots of CAPEX items are packed away into Special Purpose Vehicles in order to bring total CAPEX down and gas supply from Yamal is way more expensive than what the European market pays now. Also, Power of Siberia is not money-making but rather a political venture as well and is only connected to Eastern Siberian fields. If Putin wants to divert away from Europe it needs to be connected to Yamal fields and there is a whole bunch of Siberia between the two. Turn it the way you want, that’s not a pretty picture fo Russian gas.

Although Washington has long pushed its European allies to move away from Russian gas, some of its own policies have provided the Russian energy sector with a boost.

The National Interest

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