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OIL AND GAS
Expert: Gazprom facing dual containment
by Daniel J. Graeber
Moscow (UPI) Jul 23, 2015


disclaimer: image is for illustration purposes only

Russian energy ambitions may be contained by European political and Asian diversification schemes, a strategic studies researcher said.

Russia aims to expand its pipeline networks through Europe in an effort to resolve lingering geopolitical issues in Ukraine, through which most of its westbound gas runs. With a European Union growing wary of Russia's grip, meanwhile, the Kremlin has tilted toward Asia, where economic expansion means an increased appetite for energy supplies.

For Europe, Russian energy company Gazprom is pushing for a gas pipeline through Turkey and expansions for the existing Nord Stream system through the Baltic Sea to Germany. Vladimir Blinkov, a senior researcher at the Russian Institute of Strategic Studies, told Russian news agency ITAR-Tass the political landscape was unfavorable.

"The absence of any agreements with the European Commission is the main restraining factor," he said. "If the European Commission is against this, we won't be able to build this gas pipeline because there will be no economic sense in it."

Meanwhile, Europe may draw from alternate supplies in Azerbaijan and from liquefied natural gas, which U.S. backers of more exports see as a foreign policy tool.

China, meanwhile, has worked with Gazprom to advance the so-called Power of Siberia natural gas pipeline. That aligns with the Russian pivot to Asia, though Blinkov said Chinese gas demand could decline as Beijing examines more renewable energy options.

"The issues on all of Gazprom's large-scale gas projects can be resolved only at the level of the heads of state and governments," he concluded.


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EU extends loan to assist with Ukrainian reforms
Brussels (UPI) Jul 22, 2015
The European Commission said Wednesday it agreed to extend financial assistance to Ukraine, a key energy transit country, to help with economic reforms. The commission, acting on behalf of the European Union, said it disbursed $650 million in assistance to Ukraine to address "urgent financing needs" necessary for economic stability. The loan is aimed at steering Ukraine through energy a ... read more


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