Tag Archives: economic sanctions

Russia and China signed a mammoth natural gas agreement

Shanghai, in accordance with a news report of news.in.grAn agreement sought between China and the Russian Gazprom corporation for natural gas, was signed on Wednesday, May 21, 2014, in Shanghai.Information on the details of the agreement has not yet been released on the value of the deal. Both sides sought an agreement for almost a decade but had been struggling to reach due to the difference in the price expectations of the two sides.The agreement is estimated to set the level at 38 billion cubic meters of natural gas annually through a new pipeline. According with what has been reported so far, the formal agreement between Gazprom and Chinese CNPC is for at least 30 years and the value is reported to be around 400 billion dollars.

The Russian President Vladimir Putin was in Shanghai for a two-day visit, from which many expected the deal to be signed. Thanks to this agreement, the Russian Gazprom can utilize huge gas fields in Eastern Siberia which are far away from the European market.

Editor’s comment:

This agreement could have a significant effect on Russia’s future economic strategic relation with the western economies  and the effect of economic sanctions on Russian’s expansion of her sphere of influence. It could also influence the western corporations’ level of business conducted in Russia as her dependence on selling gas to the West, proportionately, decreases.

May Day in a changing world

nikos_konstandarasMr. Nikos Konstandaras is managing editor and a columnist of Kathimerini, the leading Greek morning daily.  He is also a contributor to The BusinessThinker.com

Like glaciers melting after ages of stability, the global political system is undergoing great change. Alliances are loosened or reinforced, old enmities are revived and the whole system of global governance is being tested. It is impossible to predict where this will lead.

There was a major May Day rally by workers in Moscow’s Red Square – the first since 1991 and the collapse of the Soviet Union. Many of the banners did not express the demands and wishes of Russian workers, instead they praised President Vladimir Putin for his dynamic intervention in Ukraine’s domestic affairs and for the annexation of Crimea. On May 9, a major military parade in Red Square commemorate the day in which the Allies defeated Nazi Germany. The revival of this Soviet tradition was Putin’s project. More recently, Russia adopted laws which make it easier to annex parts of countries that were in the Soviet Union; they also allow citizens of such territories to gain Russian citizenship. It is clear that Russia is on an irredentist march.

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