Post
Topic
Board Economics
Re: Russian Gas ban - A problem for Europe or suicide for Russia?
by
popeye95
on 10/05/2022, 17:29:29 UTC
Firstly, not the EU but Germany! Secondly, the main problem that is being discussed now is the term of the contract. Qatar wants 20 years. And Germany has already launched a “farewell to Russian gas, oil and coal” program as part of a program to reduce emissions into the atmosphere, and according to the approved plan, Germany should reduce carbon dioxide emissions by 88 percent by 2040. This means that gas purchases should also be reduced until 2040, and not only in Russia. And 2040-2022 = 18, but not 20 years, do you get the point? I'm sure the issue will be resolved. The question remains unresolved - where will Russia put its gas, oil, coal, which no one needs?! Smiley
OK, Germany cannot agree with Qatar on the supply of liquefied natural gas. Qatar does not want to increase production for the sake of a country that is going to reduce its gas consumption in the long term. Qatar also fears that its profits from gas supplies to Germany will be nullified by European antitrust law. Qatar also does not want the gas it supplies to be resold to other European countries. There are several reasons, but the result is the same - Germany does not have an agreement with Qatar on gas supplies.
Germany doesn't have an agreement with Qatar but there is another player that you haven't accounted for. US going to apply pressure on the oils cartel with NOPEC bill that allows US to sue the oil cartel or its members, force them to increase their oil production or risk of their assets frozen in US banks or no business with US's entities. If those cartel doesn't like it, they can open up a shooting war with US which I'm sure US will be happier to have more oil country under their control.