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Russia looks East

Published Tuesday, May 20th, 2014

Events in Ukraine have made it clear that Europe is too dependent on Russia for its energy supplies and Russia is too dependent on Europe for its energy demand. Both sides need to diversify.

Europe has declared that is must not only promote other sources of supply but cut its overall energy demand. It is to all intents and purposes a message to Russia to go find other customers. As a result, Europe’s posturing and threats may have succeeded in unblocking a deal that has been talked about for 10 years.

China badly needs to diversify its energy supply away from coal and oil for security and emissions reasons. That makes Russia and China natural partners in a long-term gas deal that could be signed this week when President Putin visits China.

to read the rest of the report, please click here 

Posted by David Hufton