EU: Energy as a weapon against Russia

Newsletter 2014/03/31 – Energy as a Weapon

BERLIN/WASHINGTON (Own report) – The German Chancellor is suggesting
that the EU should take a “new look at its energy policy” as a whole.
As Angela Merkel confirmed last week, several EU countries are at
least partially “very highly dependent” on “the supply of raw
materials from Russia.” Spurred on by the Ukrainian crisis, Berlin and
Brussels could, however, in the long run, seek to liberate themselves.
Merkel made her remarks following talks with Canada’s Prime Minister,
who is considering the diversification of his country’s energy exports
and does not exclude exporting natural gas to Europe. This, along with
gas, which is extracted in the USA by the controversial “fracking”
technique and should be exportable soon, could shake Russia’s strong
position on the European gas market. Massive price cuts could result,
forcing Moscow to drastically cut its budget, according to US experts.
Whether Putin could politically survive such measures is unknown. In
Berlin the debate continues over the new perspective of transatlantic
energy. Representatives from US-oriented sectors are in favor and
those from energy companies doing business with Russia and from the
SPD, are opposed.


By piotrbein