There are several factors that make shifting natural gas flows from Europe to China a practical impossibility for Russia in the short/mid term.
How big are Russian earnings from pipeline gas in relation to oil exports?
First of, great post. Good explanation and good sources to support the article.
- Would China have any concerns with Russia switching a great part of its gas export to Chinese markets?
- Would a relief or ease of the EU sanctions towards Russian persuade Russia to abandon plans to run gas towards China, or would this now become a future concern?
- Thoughts on the EU proposal to cap prices on Russian gasses?
Great post - it's clear that this leaves Russia with no short term options for obtaining a large revenue. The stop of flow of Russian gas means that Western countries are free to sanction/cap Russian oil. It would be interesting to compare the economic impact of Russian gas exports relative to oil exports, especially if a discount of 30-50 USD/bbl must be applied.
Great insight. Thanks