The Russian Federation lost European gas markets for decades, which became the Kremlin’s biggest miscalculation in its confrontation with the West.
Russian dictator Vladimir Putin, trying to use energy resources to blackmail the West, made a very big miscalculation. As a result, Russia lost European gas markets for decades, if not forever.
This is stated in the article Bloomberg.
Before the invasion of Ukraine, Russia’s share of global gas trading markets was about 30%. Due to aggression, by 2030 this share will be reduced by at least half, experts say.
Before the war, Gazprom pumped about 150 billion cubic meters of gas per year to Europe. This brought Russia very large incomes in dollars, thanks, among other things, to high prices on European markets. Now, thanks to Putin and his crazy “special operation”, it has lost the EU gas market. And finding an alternative turned out to be extremely difficult.
Today, after a year and a half of the “SVO”, we can state the failure of the Russian Federation’s turn to the East. China turned out to be not interested in increasing Russian gas supplies. Beijing agrees to buy Russian energy resources only at huge discounts. For example, Russia sells its gas to the Chinese at a price of $272 per thousand cubic meters, while the price in Europe is $482. The difference is impressive.
Moscow failed to convince Chinese leader Xi Jinping not only to build the new Power of Siberia-2 gas pipeline, but even to increase supplies through the already existing Power of Siberia. In March 2023, dictator Vladimir Putin proposed to Xi to increase gas exports to 100 billion cubic meters per year, but he received a categorical refusal.
Even if the situation normalizes, Russia will no longer be able to regain its dominant position in the European gas market, experts say. The fact is that the EU is taking decisive measures to reduce energy consumption and by the end of this decade intends to reach a figure of 50 billion cubic meters per year. And the region already has its own reliable suppliers who, unlike Moscow, do not resort to gas blackmail.
“Gazprom has no prospects“, expert Alexander Ryazanov told reporters. He drew attention to the fact that in June-July the Russian company suffered a loss of more than 1 trillion rubles and is now reducing production by a record 25%. This is a disaster.
“By cutting Europe off from gas, Putin miscalculated“, stated Maria Snegovaya, an expert at the Center for Strategic and International Studies. She came to the conclusion that the Russian Federation is ceasing to exist as a gas superpower.
It was previously reported that Xi “threw“Putin: the dictator returns to the Russian Federation without a gas contract.
We also wrote that analysts made a forecast for Russia’s revenue from the gas industry.
Author: Tatyana Shevchenko
2023-10-24 14:09:40
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