
© Indian PunchlineRussian President Vladimir Putin (L), at a meeting with Defence Minister Sergey Shoigu, revealed proposals of army commanders in Ukraine “for the development of offensive operations”, Moscow, July 4, 2022.
On July 1 at the White House, US President Joe Biden made a startling disclosure that "the idea we're going to be able to click a switch, bring down the cost of gasoline, is not likely in the near term."
American gas exporters have positioned themselves accordingly to fill the gap as Europe turns away from Russian imports.
FT reported recently that "US liquefied natural gas producers have announced a string of deals to boost exports as the
industry capitalises on shortages that have left Europe with a mounting energy crisis."The deals are so lucrative that Cheniere, America's leading gas exporter, has taken an investment decision to push ahead with a project that will boost its capacity more than 20 per cent by late 2025, anticipating long-term supply deals and locked in purchases of US gas over the coming decades. The US producers of gas are reportedly running plants flat-out to increase supplies to the EU.
The US has overtaken Russia for the first time as Europe's top gas supplier. Although LNG from the US is sold to Europe at much higher costs than pipeline gas from Russia, EU countries have no choice.
With Russian supply via Nord Stream at just 40% of capacity, and deliveries to be halted completely for annual maintenance on July 11-21, the outlook for near-term Russian gas supply to Europe appears bleak.
Germany has warned of the risk that Nord Stream gas may not return at all following the maintenance. At any rate, Russian supply to Europe is at record lows and is "set to remain constrained through the third quarter," per S&P Global.
Germany is heading for a major economic crisis. The head of the German Federation of Trade Unions has been quoted as saying in the weekend, "Entire industries are in danger of collapsing forever because of the gas bottlenecks — especially, chemicals, glass-making, and aluminium industries, which are major suppliers to key automotive sector." Massive unemployment is likely.
When Germany sneezes, of course, Europe catches cold — not only the Eurozone but even post-Brexit Britain.Welcome to the European Union's "sanctions from hell." The US literally hustled the Europeans into the Ukraine crisis. How many times did Secretary of State Antony Blinken travel to Europe in those critical months in the run-up to the Russian invasion of Ukraine to ensure that the door to any meaningful talks with the Kremlin remained shut! And American energy companies are today making windfall profits selling gas to Europeans.
Won't Europeans have the common intelligence to realise they have been had?
Comment: A 'bastion of democracy and western values', eh?