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Wednesday, 22 November 04:41 (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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Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM

Bitcoin Market Cap Exceeds $150 Billion

Bitcoin’s market capitalization exceeded $150 billion the other day. At the same time, the international expert community keeps on pondering upon the near-term prospects of Bitcoin and other digital currencies.

Publication date: 03 September 11:22 PM

American Sanctions Will Cut Investments In Russia

Some experts say that the next round of anti-Russian sanctions imposed a couple of weeks ago is going to undermine the Russian economy. In particular, they are threatening the investment capital inflow.

 

 
A few weeks after Donald Trump reluctantly signed the new sanctions approved by the U.S. Congress, Russian and foreign investors are still trying to figure out what the actual consequences of this decision are going to be. For now, they seem to have understood enough to be afraid of long-term negative consequences for their existing or potential investments in the Russian economy, which has just started recovering after a 2-year recession.
 
Publication date: 31 August 01:44 AM

New U.S. Sanctions Against Russia Will Result In Geopolitical Changes

Political expert Lilia Shevtsova commented on the new sanctions against Russia imposed by the United States. She claims that the geopolitical situation in the world is going to change in the near future due to the sanctions.

 

She claims that introducing those sanctions was like a surgery. As the result of this surgery, the USA got rid of a foreign body. After that, Washington is probably going to reset their foreign policy. However, nobody can definitely say what exactly this event is going to result in. But one thing is sure – something is definitely going to change in the world order, and this creates certain threats for Russia.

Publication date: 28 August 03:32 AM

New Sanctions Against Russia Will Last Long

Russian political expert Leonid Shvets commented on the new round of anti-Russian sanctions. For starters, he claims that Russia has already turned into America’s biggest enemy. The thing is that the new law signed by Donald Trump not so long ago is designed to fight America’s enemies with the help of sanctions. North Korea and Iran are also on the same list.

 

 
Publication date: 28 August 01:02 AM

New Sanctions Will Hit Putin Personally, Piotrovskiy Says

This time, American sanctions are going to hit even Vladimir Putin himself, Andrey Piotrovskiy says. He says that the devil is in the detail. The thing is that the new sanctions approved by the U.S. Congress and signed by Donald Trump (even though he was against those sanctions), obliges the U.S. financial intelligence to provide the Congress with the information on all the known and probable assets belonging to the all the high-ranking Russian politicians, including Russian President Vladimir Putin. With that being said, it’s not accidental, that Putin is mentioned several times in the document.
 
Publication date: 27 August 11:35 AM