With ambitious plans to get rid of the natural gas imported from Russia (or coal, for that matter), some European governments discovered at first hand the implications of such measures.
Basically, starting with Wednesday 26th April 2022, the first two countries to taste a little bit the so called "getting rid of the Russia dependency" pill, were Bulgaria and Poland. Gazprom decided that it's time for action, and cut the supply of gas to these countries. Poland, because of the well known rivalry between the two countries, and Bulgaria probably only by chance, for the example sake.
Bulgaria is taking 3/4 of its consumption from Russia. Poland about half. And even if they're saying it's no big deal, since the summer is coming, maybe this is a good reflection point to invest in some more pullovers and covers for the winter.
The gas cuts do not immediately put the countries into dire trouble since they have worked on getting alternative sources for several years now and the continent is heading into summer, making gas not as essential for households.
Gas not essential for households. Unless you're using it in a heating unit for your hot water consumption. Or to cook meals. But, showers are not essentials, and cooking can be replaced by nice summer BBQs anyway. right?!
The whole move should be seen as a preliminary to fry a bigger fish, and the fish is called Germany. But Germany cannot afford to be just cut off the gas. Its whole industry will sink and that will add trouble to the already existing inflation. And by extension, to euro. So, Germany is still joggling and dancing on two songs in the same time. We have to see for how long.
Meanwhile, the famous EU Chief Ursula von der Layen, is fighting back with words:
... the EU's response to this "provocation from the Kremlin" will be "immediate, united and coordinated".
... called Gazprom's move to cut off Poland and Bulgaria "another attempt by Russia to use gas as a tool for blackmail." That is "unjustified and unacceptable" and "shows again that Russia is unreliable as a gas supplier," she said.
Hmm. Strange that until last year, Russia was considered a reliable source of gas by all the European countries. We haven't heard complains about that before.
And unjustified and unacceptable??
Short memory or what? European Union (and other allies, as US) are going full motion with economic sanctions against Russia. Make them impossible to operate their contracts in euro or US dollars. Suspending all economical ties and openly declaring to get rid of coal and gas from Russia.
"We have to get rid of the dependency on Russian gas, oil and coal," commission President Ursula von der Leyen said in Brussels at a meeting with Italian Prime Minister Mario Draghi
So with all these being say, is Gazprom an unreliable partner, or the Russia is using gas as a blackmail? It's funny (in a weird way) how European Union is singing for years the song that natural gas is the main cause for the climate change, and it's bad, and now importing natural gas from Russia is bad, but when Russia is cutting the supply (helping EU in achieving its goals), out of the sudden, is not correct anymore.
Commission chief highlighted that paying in the Russian currency would violate EU sanctions and that 97% of the bloc's gas contracts with Russia were signed in euros or dollars.
That was before EU (and US) actually blocked the euros or dollars transactions for Russia, no?! And what's this crap "violate EU sanctions" ? Do you actually expect Russia to follow EU sanctions only because EU thinks they're motivated? Either we're playing dumb here, or we have no idea who we're against to.
Meanwhile, Ursula von der Layen probably should still explain us what happened with the 1.8 billions vaccines ordered from Pfizer to fight Covid.
But fear not, Ursula has a plan:
"We are prepared for this scenario." She said the European Union is working on a joint response to the Russian measure.
Most likely, ECB will print some billions of cubic meters of natural gas and everything will be fine. Or billions of euros in freshly printed banknotes, to be burned for heat. Possibilities are endless.
In the same time, Austria is remaining on the other side of the fence. Intentionally. Since the Russian gas is way too important for their economy and population, and since they realize that EU is hurting itself more than the Russian side, they've decided to continue importing gas and paying in rubles, as requested.
Bottom line is, if you're getting into a fight, make sure you are able to fight (and win). And be convinced that everyone will be affected of this economic war, even if EU wants to give the impression that only Putin has something to lose.
