Scott Belinski — Putin May Have Last Laugh Over Western Sanctions

Both Yamal LNG’s move to China and Russia’s newfound partnership with India are key steps in Moscow’s plan of undermining Western sanctions. What has become clear is that emerging powers and partners of Russia are more than willing to fill in the gap that has been left wide open by fleeing Western investors. For its part, the US, which recently gave indication that it saw no end to sanctions until Crimea was returned to Ukraine, might run the risk of allowing political aims to weaken its own economic output, specifically the future growth of its bulging energy industry sector.

While US economic sanctions have unwantedly brought Russia and its Asian partners closer together than ever before, De Margerie was always quick to point out the obvious: “Can we live without Russian gas in Europe? The answer is no. Are there any reasons to live without it? I think […] it is a no”. While EU member states and the US government are striving to sway Putin from his present course in Ukraine, they should also think about the unintended long-term consequences that foregoing collaboration with Russian companies in the arctic would have for their own economies.

As stated a by senior analyst at the Forex Club, Alyona Afanasyevna, “times of crisis always present the possibility to strengthen one’s position in a certain market” and while other international companies flee the scene, Total’s commitment to Russia and to Novatek’s Yamal LNG plan, “guarantees it future dividends in the form of closer cooperation”. Western governments and other energy companies should take note.

Oilprice.com
Putin May Have Last Laugh Over Western Sanctions
Scott Belinski, Moscow-based energy consultant