The Natural Gas Crisis in Europe

While Europe’s reserves of fossil fuels are going down fast, Russia’s Gazprom and China’s China National Petroleum Corporation (CNPC) have signed a historic 30-year agreement to supply natural gas to China. The agreement comes after more than a decade of repeated negotiations over the price of the natural gas, claims DW News.

Also Read: The EU’s Eastern Partnership Summit Proves the Cold War Is Not Over

Gazprom Sakhalin Project

Gazprom Sakhalin Project: Extraction Phase

Global Stability Institute, its latest research found out that many European Countries, including Britain, France, Italy, etc., are running out of their fossil fuels. Their energy supply for all sorts of activities can be reliant on exports in several years. The study found that:

“UK has just 5.2 years of oil, 4.5 years of coal and three years of gas before it completely runs out of fossil fuels. “Years left” of natural gas are moderately low in North America, with 6 years in Mexico in 2010 and 11 in the USA. USA figures have risen recently as a result of the development of extraction from shale gas deposits and may rise further as further reserve are proven.”

The study claims that the uneven distribution of natural resources globally is relevant both to national and political stability and therefore to global international relations.

Nevertheless, the Chinese-Russian deal comes at a time of growing tensions between Russia and the West, triggered by the crisis in Ukraine. Russia is already a major energy supplier of large economies such as Japan and South Korea. As such, Russia’s role as a major energy supplier, gives it an important role in the region, and sometimes.

Also Read: Russia and China Ink Gas Deal Worth Over $400bn

The sign of this strategic alliance with China goes back to 2012, when Putin outlined Russian foreign policy ahead of winning his third term in the president’s office. While the West wants to restrict entry for Russian citizens, Moscow and Beijing have started working on easing visa restriction.

“Russia in turn is eyeing Chinese money. Moscow hopes China will increase its investments in Russia by 700 percent by 2020, according to Russian Economic Development Minister Alexey Ulyukaev,” claims DW News.

About Edona Bajrami

Edona is an analyst of the issues related to Global Political Economy at FINNBAY. She specialized in international political economy first at Rochester Institute of Technology, New York and then the University of Kent in Brussels.

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