Tuesday, October 13, 2009

The Kremlin's Stinkin' Gas

Once again, we see that it's all about the money. Well, and about what money can do.

Gazprom, the Kremlin's major gas exporter, is a vital organ in the Russian economy. A lesser known fact, as this article points out, is how the state uses it to exercise its political clout.

It isn't hard to turn a nob and stop gas exports to neighboring eastern European countries. But it is hard being those eastern European countries during a worldwide financial meltdown, under the mercy of a power-hungry state. The Ukrainian economy suffered a crippling blow last summer, when Russia cut off gas exports to the already struggling country. However, pressured by Western European governments--whose gas imports come to them via the same pipeline--, the gas began to flow again after 3 weeks.

The scary part for eastern Europe? To bypass them, Gazprom is laying pipelines under the Baltic sea, that will carry gas to western Europe. And who knows what will happen to the eastern republics once the west has its unobstructed flow of gas, and no protesting voices.

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