Paul R. Gregory's writings on Russia, the world economy, and other matters that he finds of interest.
Monday, May 13, 2019
Is Russia Preparing A Gas Nuclear Option?
Clearly, a nuclear option would risk long-term damage to Russia’s gas business with Europe. It would promote the construction of LNG terminals throughout Europe and drive European buyers into the clutches of American LNG. Europe could not afford to gamble with Russia’s unreliability as a supplier of such a key resource. But the nuclear option carries with it tempting short-run gains. It would remove Ukraine from the gas delivery business. Russia could destabilize the new administration of a young and popular president. Russia could again play king of the hill and split Eastern Europe from Western Europe, not only with cyber-attacks but with the more potent weapon of energy.