The Importance Of The Cancellation Of South Stream
By Alexander Mercouris
December 03, 2014 "ICH" - "The Saker" -
"...Russia has dealt a devastating blow to the energy future of the EU. A few years down the line Europeans will start to discover that moralising and bluff comes with a price..."
It is definitely worth reading all this excellent article, (and the comments at the original source), which explains the situation very well, but here are some more helpful extracts:
. . .By redirecting gas away from Europe, Russia by contrast leaves behind a market for its gas which is economically stagnant and which (as the events of this year have shown) is irremediably hostile.
No one should be surprised that Russia has given up on a relationship from which it gets from its erstwhile partner an endless stream of threats and abuse, combined with moralising lectures, political meddling and now sanctions.
No relationship, business or otherwise, can work that way and the one between Russia and Europe is no exception. . .
The Russians decided they could afford to cancel it because they have decided Russia’s future is in selling its energy to China and Turkey and other states in Asia (more gas deals are pending with Korea and Japan and possibly also with Pakistan and India) than to Europe.
Given that this is so, for Russia South Stream has lost its point. That is why in their characteristically direct way, rather than accept the Europeans’ conditions, the Russians pulled the plug on it.
Last year Greece, another country with strong ties to Russia, pulled out of a deal to sell its natural gas company to Gazprom because the EU disapproved of it, even though it was Gazprom that offered the best price. . .
By contrast through the deals it has made this year with China, Turkey and Iran, Russia has dealt a devastating blow to the energy future of the EU. A few years down the line Europeans will start to discover that moralising and bluff comes with a price.
Regardless, by cancelling South Stream, Russia has imposed upon Europe the most effective of the sanctions we have seen this year.