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May 3, 2022
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The Guardian: Russia trapped Europe

Pictured: A man fills a gas can at a gas station in London.

Pictured: A man fills a gas can at a gas station in London (Photo: AP Photo/Frank Augstein/TASS)

The Europeans are refusing Russian energy carriers, and thus only making Russia stronger. Western companies that have invested billions of dollars in the development of Russian projects can now sell them for a penny to companies from China and India. Moscow will only be in the black, having received both money and technology.

The West seeks to abandon Russian energy sources – not only oil, gas and coal, but even dark oil products. At the same time, convulsively getting rid of Russian hydrocarbons, the Europeans are shooting themselves in the foot.

Gasoline prices in most EU countries have already broken all conceivable records. Huge queues line up at gas stations, especially from truckers. The longest lines are at gas stations in Hungary, where the authorities have introduced a tightly regulated fuel price to avoid collapse and mass protests. Gasoline costs no more than 480 forints (about 150 rubles at the current exchange rate).

And now, to refuel at Hungarian gas stations, trucks and buses come here from neighboring Slovakia, Slovenia, Poland and Austria.

In the photo: Croats travel to a neighboring country to buy fuel at gas stations in Lenti.  Croats buy fuel from Hungarian gas stations because it is a cheaper solution.
In the photo: Croats travel to a neighboring country to buy fuel at gas stations in Lenti. Croats buy fuel from Hungarian gas stations because it is a cheaper solution. (Photo: Vjeran Zganec Rogulja/PIXSELL/TASS)

Gas station owners complain that more and more motorists are leaving without paying. We even have to introduce a limit on the purchase of fuel.

The industry is also suffering, especially the German industry, which is most dependent on Russian gas. The most dependent industries are chemical, glass, steel, and automotive.

Several German automakers (BMW, Audi, Porsche, Volkswagen, MAN) have already been forced to cancel work shifts, the conveyors at the car factories in Ingolstadt and Dingolfing have been completely stopped. The workers were sent to idle.

According to The Guardian, such an economic catastrophe in Europe is connected with the politicization of energy. The dependence of the European industry on Russian oil and gas is too high, it is possible to get rid of it no earlier than 2027.

The European Commission says it is imposing an embargo on the supply of Russian hydrocarbons in order to stop supplying Moscow with export earnings. And everything turns out exactly the opposite.

The Guardian estimates that despite all the restrictions, Russia’s export earnings are only growing.

“Continued energy imports are the main gap in the sanctions imposed on Russia… Russia has effectively trapped the European Union, where further restrictions will lead to further price increases, despite the best efforts of EU governments,” writes The Guardian.

And backs it up with concrete numbers. Compared to last year, Russia’s export earnings from the sale of hydrocarbons doubled. Since the beginning of the special operation, despite the aggressive rhetoric, Germany has paid 9 billion euros for Russian energy resources, Italy – 6.8 billion euros, the Netherlands – 5.6 billion euros. Moreover, these countries bought gas in Russia not only for their own consumption, but also for reloading in ports.

Bloomberg: Chinese companies will settle on the Russian shelf

During the presidency Vladimir Putin the Russian energy sector remained extremely attractive to Western investors. The largest Western corporations invested in Russia: TotalEnergies, ExxonMobile, BP, Shell, Chevron and many others.

Now they continue to buy large volumes of Russian oil. And most importantly, they are in no hurry to withdraw from Russian projects that promise huge profits.

Moreover, investors from friendly countries are willing to buy Russian assets from Western countries. including China and India.

For example, the Chinese CNOOC, CNPC and Sinopec are negotiating the purchase of a 27.5% share of Shell in the Sakhalin-2 LNG project. It was one of the first transnational hydrocarbon projects in Russia, in which investments started flowing back in 1996.

According to the American business publication Bloomberg, the sale can take place according to different schemes: either one of the Chinese companies or a consortium can buy a stake in Sakhalin-2. So far, the Chinese authorities have not officially commented on anything, but against the backdrop of news about negotiations with Chinese investors, Shell shares even grew up.

The arrival of Chinese companies to Sakhalin is fully justified: state-owned companies from China are already participating in Russian LNG projects in Yamal.

Reuters: Delhi cares about its fellow citizens, not politics

China is not the only superpower that could replace western companies that fled into Russian energy. India is also showing increasing interest, writes Reuters.

The Ministry of Petroleum Industry of India is considering buying a 20% stake in Rosneft, which has been owned by BP since 2013. The British company said it intends to leave Russia and is even ready to write off all investments. The amount of investments is estimated at 14 billion dollars.

Buy shares of “Rosneft” can either one of the largest energy state-owned companies in India, or a consortium. Interest is shown, according to Reuters, ONGC Videsh, Bharat Petro Resources, Hindustan Pertoleum, Oil India or GAIL.

The British do not seem to mind the sale: in March, the CEO of BP Bernard Looney met with the Minister of Petroleum of India Hardeep Singh Puri. It is obvious that Russia also gave the go-ahead.

And this is not the only asset that Indians are interested in. The Indian Ministry of Petroleum has asked OVL to consider buying a 30% stake owned by ExxonMobile in the Sakhalin-1 project. However, there the amount is more modest – only 4 billion dollars.

The Russian energy market is very important and interesting for India, which is the third largest oil importer in the world. Moreover, the rapidly growing Indian economy buys about 85% of its oil needs. In recent months, Indians have been rapidly increasing their purchases from Russia of both oil and coal – not only for energy, but also for coking. And it is needed for steel smelting.

Delhi is not afraid of sanctions. But the possibility of being left without light is quite. Pragmatic Indians do not want to play politics like the Europeans. Their fellow citizens are more important to them …

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