Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gazprom's Increasing Influence Throughout Central Asia and Eastern Europe

Politics / Oil Companies Jul 20, 2011 - 11:17 AM GMT

By: OilPrice_Com

Politics

The December 1991 collapse of the USSR was an unmitigated disaster for all 15 nations emerging from the desiccated carapace of the Soviet Union.

Now, like a plate of mercury smashed with a hammer, rivulets of the former USSR member state's energy assets two decades later are trickling back under the control and influence of Eurasia largest energy concern, Gazprom.


All the new post-Soviet states faced the triple problems of raging hyperinflation, evolving ad hoc nationalistic policies and, perhaps most importantly, coping with the detritus of Union-wide systems that suddenly deposited fragments of their former selves on the territories of the new nations.

Of these debris fields, the three most important were the former USSR's communications, transport and energy grids. Working out new relationships between the nations emerging from the USSR's demise was a long, convoluted process, given that all three systems as a whole had been designed to serve the Soviet Union as a whole, rather than its constituent republics.

Of the three above-mentioned legacies, the communications and transport networks were relatively easy to resolve - slap a new coat of paint on the railway carriage, name it after the new national railway, problem solved.

The real trauma amongst the post-Soviet states began over the USSR's energy infrastructure. Designed originally to benefit the USSR as an autarkic entity, the Soviet Union only began in the late 1970s to export its energy riches, the energy resources and natural gas and oil pipelines and electrical transmission lines suddenly became national assets, to be exploited for maximum benefit, even if it meant hammering the neighbouring economy of a former fraternal Soviet socialist republic.

And the organization with the 800-lb hammer is the Russian Federation's state-owned national gas company, Gazprom.

Of the post-Soviet space's energy assets, two loomed above all of interest to Gazprom.

In the energy-poor former western republics of the USSR, their extensive pipeline networks, particularly those of Ukraine and Belarus, that had been developed beginning in the mid-1970s not only to supply their indigenous needs but to transmit soviet gas to the burgeoning markets of Europe, despite the disapproval of the Reagan administration.

Farther east, the item of interest were the natural gas assets of the Soviet Central Asian "Stans," which could be used to meet heavily subsidized Soviet domestic requirements while natural gas produced in the Russian SSR could be shipped westward to the rich capitalist Europeans.

Two recent developments have indicated that Gazprom has advanced on the chessboard in both directions.

First, as regards Belarus, earlier this month Belarusian Prime Minister Mikhail Myasnikovich stated that Minsk is prepared to sell the country's Beltransgaz pipeline network to Gazprom, a development which the Belarus government had resisted for two decades.

The reason? The crushing debt, even at subsidized prices, owed by Belarus for Gazprom natural gas shipments.

Farther east, Gazprom has extended its influence in Kazakhstan, the second biggest energy producer in the former Soviet Union and Russia's closest Central Asia ally, despite the vast country being a darling of Western energy companies for its Caspian reserves. Earlier this month Gazprom announced that it had appointed Timur Kulibayev, son-in-law of Kazakh President Nursultan Nazarbayev, to its board of directors. Gazprom CEO Aleksei Miller noted that Kulibayev was a good choice because Russia and Kazakhstan have common oil and gas interests and that Gazprom was planning large projects in Kazakhstan. Given Kazakhstan's landlocked nature, that can mean only one thing - pipelines.

Kulibayev, who is chairman of the board at KazMunaiGas, is also chairman of the supervisory board of Samruk-Kazyn, the Kazakh National Welfare Fund, which controls the state's stakes in a swathe of the country's key industries, including KazMunaiGas and has assets of $80 billion.

What does this mean for Western energy companies, which have ploughed more than $80 billion into developing Kazakh energy assets over the past two decades? Unclear - but as one analyst observed, "Americans play checkers, and the Russians play chess."Under this metaphor, it would seem that Putin is moving closer to declaring "checkmate" over Western penetration of the energy assets of the post-Soviet space.

Source: http://oilprice.com/Energy/Natural-Gas/The-Return-of-Gazprom.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2011 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in