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Friday, 21 July 02:42 (GMT -05:00)



Business And Politics News

China Doesn’t Need Russian Gas and Pipelines


Don’t you remember how a couple of years ago Gazprom cut natural gas supplies to Ukraine a number of times. By the way, Ukraine alone used to buy 55 billion cubic meters of natural gas back then. Now Ukraine buys no natural gas form Russia at all. Apparently, Moscow keeps on looking for other outlets. There has been a lot of buzz about China as a new big outlet for Russian natural gas and crude oil. It turns out that two new pipelines should have transferred to China some 38 billion cubic meters of natural gas every year. Yet, this was the maximum amount, and it couldn’t clearly make up for the export of natural gas to Ukraine.

 

 

 

 
Here is another surprise. Most likely, China is going to refuse the extra import of Russian natural gas. If that’s the case, those pipelines will become idle and useless.
 
Gazprom’s Wishful Thinking
 
According to mass media, the gas talks between Russia and China have come to a deadlock. In particular, China decided to take a timeout in order to better estimate the future consumption of natural gas in the country. Indeed, the Chinese economy consumes a whole lot of natural gas. However, there are many alternatives to Russian natural gas, so china isn’t short of offers. This means that China isn’t clearly going to buy excessive amount of gas and wants to buy it as cheap as possible.
 
And apparently, China is not another Ukraine to let Russia dictate the rules in the bilateral trade relations. That’s why some plans are crashing. At this point, Russia has already lost the entire Ukrainian market and most European markets as well. That is why Russian propaganda has been focused on advocating the idea that China can become a huge outlet for Russia’s export of crude oil and natural gas, easily making up for Ukrainian and EU outlets.
 
The first pipeline is designed to transfer 30 billion cubic feet of natural gas to China, and the second one is intended for 8 billion cubic feet of natural gas. However, now even the fate of the entire deal is questioned. Now that China has started questioning the necessity of extra supplies of Russian natural gas, Russia has now figured out that they are not the only one who can go back on their promises.
 
Russia has invested tons of money in the pipelines. However, chances are some of them are going to end up being a waste of money. The Chinese have their own plans and they will never let anyone forget who is the one paying. Today China consumes 206 billion cubic feet of natural gas a year. By 2020, the consumption is expected to grow all the way up to 260 cubic feet. However, it would be not too smart for Gazprom to think that Russia is going to be the only one covering the increasing demand in China. However, Gazprom dare think so and decided to implement a big-scale project ­– $400 billion. This could have been a really good investment but for China’s true plans making it a really risky game. The thing is, China produces a certain amount of gas to cover a certain part of the local needs. Yet, the local production seems to be booming.
 

 

On top of that, China decided to catch at the chance offered by the USA – liquefied natural gas and shale gas. Also they are buying cheap gas in Turkmenistan. China is investing in the natural gas industry. While Russian projects are not ready yet, if the Chinese decide to cut down on their investments and go back on some of their gas deals, the Russian projects are probably going to end up being a scapegoat. That’s what Gazprom is in a hurry trying to build those pipelines as fast as possible.

 

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British Start Getting Disappointed with Brexit, Soros Says

Last year’s Brexit referendum has become a major challenge for the British government, George Soros says. He says that more and more British citizens start getting disappointed with the Brexit.

 

 
The world-famous financier and CEO of Soros Fund Management assumes that now the economic reality starts revealing the real state of affairs and debunk their delusions related to the happy living outside of the European Union. More than 12 months ago, the advocates of the Brexit scenario were trying to persuade people that this choice won’t affect people’s standards of living. Well, since then, the government has been trying to implement this promise at the expense of increasing the internal debt.
Publication date: 14 July 02:40 AM

Two Reasons Why Russia Keeps Losing Influence Over Post-Soviet States

After the USSR ceased to exist, the Kremlin was counting on retaining their influence in the region. However, the truth is that Russia as the major successor to the USSR has been losing its influence over the remaining post-soviet states. There are 2 reasons for that.

 

 
According to the related report recently published by private American analytic company Stratfor, there is a range of new tendencies making it difficult for Russia to stay influential in the post-soviet region, especially when it comes to Ukraine. The two major reasons for that are believed to be the declining role of the Russian language in the region as well as the existing threats of mass protest inside Russia itself.
Publication date: 06 July 01:42 PM

Business with China: New Reality after Blocking Yandex and VK in Ukraine

Ukrainian President Petr Poroshenko has expanded the list of sanctions against individuals and legal entities from Russia. To be more specific, Ukraine imposed sanctions on several Russian online companies, including Yandex, which is Russia’s biggest IT company, as well as some other popular web services like VK, Odnoklassniki, and Mail.ru Group. According to the presidential decree, Ukrainian Internet providers are forbidden to grant access to those blacklisted websites.

Publication date: 06 July 01:13 AM

Mass Media on Forthcoming Trump-Putin Meeting

For those of you who don’t know, the first official meeting between Donald trump and Vladimir Putin has been confirmed. It’s planned for July 7, during the G20 summit in Hamburg, Germany.

 

 
Some observers say that the White House did the Kremlin a favor by being the first one confirming the official meeting during the G20 summit. This announcement helped the sided to get of the rumors around the situation and helped Moscow to save face in the Russian media space.
Publication date: 05 July 06:24 AM

Putin and Trump Part Ways

According to The Daily Telegraph observer Con Coughlin, even if Donald Trump used to seek ways to improve the relations with Russia, today he is probably going to really abandon this idea. The thing is that not so long ago, the U.S. hit a Syrian fight jet, the one belonging to Bashar Asad’s troop. Since Putin and Asad are allies, this fact is definitely going to affect the process of improving the U.S.-Russia relations, and probably suspend this process for the near future.
 
Publication date: 29 June 11:50 PM

What’s New in New Anti-Russia Sanctions?

Today, the Russian political establishment and media are glad that the Senate of the U.S. Congress has recently postponed their voting on new sanctions against Russia. However, this is just the so-called “calm before the storm”, Western experts say.

 

 
The new sanction mechanism developed by the Senate is fundamentally different from the sanctions imposed on Russia previously, under Obama’s administration. The experts say that unlike Obama’s isolated decrees, the Senate has come up with a whole new mechanism taking into consideration the whole seriousness of Russia’s crimes in the global geopolitical arena. This mechanism will prevent the U.S. authorities from being able to cancel those sanctions gradually. So, the only way out will boil down to Russia leaving Donbass, the Crimea and Syria. So, this will be the only opportunity for Russia to see the Western world cancel those sanctions.
Publication date: 26 June 01:26 AM

Fed Raises Key Interest Rate. How Will This Affect Russian Economy?

The federal Reserve has raised the key interest rate by 0,25%. According to international experts, this may well make foreign assets (including Russian ones) less attractive in terms of investing.

 

 
The decision was made as the result of the recent 2-day FOMC meeting. The interest rate was raised up to 1-1,25%. At the same time, it’s interesting to note that the actual decision matched expectations, both from the international expert community and financial markets.
Publication date: 20 June 05:12 AM

Why Did British People Punish Theresa May During Parliamentary Election?

During the recent parliamentary election in the UK, the British Conservatives failed to gain public support required to get the absolute majority in the British parliament. Now, the international expert community is discussing the reasons why Theresa May failed on her expectations.

 

 
Publication date: 20 June 03:09 AM

Why Does Trump Fail to Be a Good President?

As you probably know, the scandal around Donald Trump’s decision to fire FBI Director Comey is just one of the unpleasant incidents in his presidential career started in early 2017.

 

 
The truth of the matter is, after the investigation against Michael Flynn started, Donald Trump asked FBI Director Comey to let the investigation slide. While Director Comey didn’t dare object to President Trump openly, he didn’t do that. On the contrary, the investigation got even more intensive.
Publication date: 16 June 01:46 AM

Trump Accuses Qatar Of Financing Terrorists

Donald Trump thinks that Qatar has been involved in sponsoring terrorists in the Middle East. That said, the USA joined other nations accusing Qatar of this kind of financing. President Trump thinks that it’s time to put an end to this. However, he didn’t specify what exactly Qatar did to sponsor terrorists.

 
Publication date: 15 June 05:35 AM