Russia expects significantly more by cutting gas exports than Europe
By reducing the calculation of the gas volume of the Nord Stream 1 gas pipeline to twenty percent of its capacity, Russia is dealing a “catastrophic blow” to its own economy, the authors in Fortune magazine from Yale University, who analyzed the situation in a Russian energy journal.
From a purely economic perspective, Russian President Vladimir Putin needs far more than the world needs Russian energy, Jeffrey Sonnenfeld and Steven Tian. Last year, Europe imported 46 percent of energy resources from Russia, while exports to Europe exported 83 percent of all Russian exports. Moscow is forced to sell its oil to Asian countries at a 35 percent discount, and with only one active gas pipeline from Russia to China or India, gas supplies to Asia in 2021 account for only 10 percent of supplies to Europe.
“Putin’s stunts, such as lowering Europe’s income to a largely large increase in oil export revenue, are approaching catastrophic given rising spending figures, a two percent budget deficit and dwindling foreign exchange reserves,” write Jeffrey Sonnenfel and Steven Tian.
Putin’s bet on splitting European countries and intimidating European suffrage is not working, American analysts say. Politicians in Europe and the US are taking joint action. The volumes of oil received from strategic reserves exceed the volumes of Russian exports. In the United States, oil and gas production has increased dramatically. Large gas production and liquefied gas production have reached a record level, oil production is approaching a record high.