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To: Cicero
This doesn’t compute. Is Western Europe going to freeze in the dark so they can boycott Russia? I really don’t think so.

Western Europe can buy their gas or oil from anywhere in the world. Contracts don't mean anything. If they pony up a few extra % points, they can buy what they want. Do you really think oil-producing countries that routinely nationalize oil and gas fields will balk at tearing up existing supply contracts to divert fuel to Europe for a few dollars more per barrel or mcf?

The reason Russia's stock market tanked 12% is because domestic investors understand that the EU, with its $32K average per capita income, is relatively insensitive to fuel price increases whereas Russia ($13K per capita GDP), whose economy is roughly 50% or more oil and gas dependent will have issues dealing with fuel price decreases resulting from a Europe- or worldwide trade embargo. Russia will have to sell its oil and gas at cut rate prices to China and India, which were said to be offering a steep discount to the market price for Iranian oil, while sanctions were ongoing.

27 posted on 03/03/2014 6:30:06 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: Zhang Fei

You’re way off.
Changing from Russian gas would require HUGE infrastructure costs.


36 posted on 03/03/2014 7:48:25 PM PST by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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