Tag Archives: Russia

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.

Editorial: Today’s Globalized World and Business.

drjohn11aDr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation.

Several republics of the collapsed Soviet Union became independent nations. These nations suddenly realized that they must be responsible for their own road ahead. The global spread of democracy intensified yet further this realization.

The rapid advancement of technological developments, globalization, and the “free” movement of goods, services and capital, has created a new geopolitical world with “free market” economic development taking “front seat” in the “Halls of Power and Policy making” of our world. Though we are witnessing, still, wars fought with advanced technology weapons these wars have been regional.

It has become ever so more clear that economically weak states become dependent on economic blocks for their future wellbeing. Though ideologies still are influential in policy formulation, economic strength has become a principal objective and “free market” economic systems are being adopted, not withstanding their flaws. Until an economics Einstein comes up with a new system in the future it is the best system we’ve got! It is the System that creates opportunities for enterprise creation that provides employment and economic advancement of the individual and the State. Naturally regulations and controls are necessary for checks and balances so that within human limitations the system operates fairly for all.

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The State of the World: Germany’s Strategy

Mr. George Friedman is the CEO and chief intelligence officer of Stratfor, a private intelligence company located in Austin, TX.

This article is published here in by permission of Stratfor.

The idea of Germany having an independent national strategy runs counter to everything that Germany has wanted to be since World War II and everything the world has wanted from Germany. In a way, the entire structure of modern Europe was created to take advantage of Germany’s economic dynamism while avoiding the threat of German domination. In writing about German strategy, I am raising the possibility that the basic structure of Western Europe since World War II and of Europe as a whole since 1991 is coming to a close.

If so, then the question is whether historical patterns of German strategy will emerge or something new is coming. It is, of course, always possible that the old post-war model can be preserved. Whichever it is, the future of German strategy is certainly the most important question in Europe and quite possibly in the world.

Origins of Germany’s Strategy

Before 1871, when Germany was fragmented into a large number of small states, it did not pose a challenge to Europe. Rather, it served as a buffer between France on one side and Russia and Austria on the other. Napoleon and his campaign to dominate Europe first changed the status of Germany, both overcoming the barrier and provoking the rise of Prussia, a powerful German entity. Prussia became instrumental in creating a united Germany in 1871, and with that, the geopolitics of Europe changed.

What had been a morass of states became not only a unified country but also the most economically dynamic country in Europe — and the one with the most substantial ground forces. Germany was also  inherently insecure. Lacking any real strategic depth, Germany could not survive a simultaneous attack by France and Russia. Therefore, Germany’s core strategy was to prevent the emergence of an alliance between France and Russia. However, in the event that there was no alliance between France and Russia, Germany was always tempted to solve the problem in a more controlled and secure way, by defeating France and ending the threat of an alliance. This is the strategy Germany has chosen for most of its existence.

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