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I don't think the EU is being extorted, exactly. It's simply that, for the countries that have done harsh sanctions on Russian gas, it's basically free for them
by pasabagi 4y ago
I don't think the EU is being extorted, exactly. It's simply that, for the countries that have done harsh sanctions on Russian gas, it's basically free for them: they weren't importing any anyway.
Germany has a real and significant dependence on Russian gas. It would actually have an economic effect if they sanctioned it tomorrow - companies would go bust. It would, however, be totally doable. It's not the case that it's a unbearable cost to pay, it's simply that it is a cost.
People make out that Russia has the EU over a barrel, but it's more the other way around them: energy is literally the most fungible input. Having higher energy costs is bad for your economy, but it's not nearly as bad as having your major export (gas) embargoed. It's not like they can just pick up all their pipelines and point them at China.
- SkyMarshal 4y agoJust to revisit this 2 weeks later, even the European Commission President is now saying Russia is trying to blackmail the EU by cutting off energy supplies: https://youtu.be/W-601_tkKyk https://youtu.be/W-601_tkKyk But you’re right this will ultimately hurt Russia more than the EU. EU will find other sources of energy, and Russia will lose a major revenue stream that they really can’t afford to lose.