Tuesday, 15 July 2014

Russia Has Lost Control of Central Asian Gas | The Moscow Times @cjcmichel

Russia Has Lost Control of Central Asian Gas | The Moscow Times:



"When Moscow announced that it would be cutting off gas supplies to Ukraine last month, the stoppage was compared with the two previous suspensions in 2006 and 2009. This time, observers noted, Moscow's motivations seemed far more political than economic.



Outrage from European capitals arose in the two prior instances, but the responses this time from Brussels have been less understanding. There is one other substantive difference: In 2006 and 2009, Russia was bullish, able to cow and convince external clients of its necessity. The most recent stoppage, though, has illustrated Moscow's decreasing capacities as both provider and partner, as the European Union plays hardball over the South Stream gas pipeline.



Moreover, the declining importance of Russia's presence as a gas provider can be seen not simply in the markets it once held, but in the markets it has lost, either through past oversight or the Kremlin's Crimean adventurism."



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