There are a number of reasons for that including Russia low balling the costs to make the deal more attractive. But price isn't the issue. It is increasing dependence on Russian oil and gas by Europe, especially Germany. Is cost the criterion or should there be other factors like national security be included when considering a strategic interest like energy?.
Germany Moves Forward With Controversial Nord Stream Two
Another reason Putin may be optimistic is Germany’s unswerving support for Nord Stream Two, the undersea Baltic pipeline that will supply Russian natural gas directly to Germany and other parts of Europe. Nord Stream Two will double the capacity of the previously built Nord Stream One pipeline from 55 to 110 billion cubic meters per year. German Chancellor Angela Merkel’s government has backed the Russian-led project, despite protests from the European Union and several EU member states. At the same time, Russia’s state-owned Gazprom is building a pipeline that will supply Europe from the south, as well. The goal is to prevent Europe from developing alternatives to Russian gas, which gives the Kremlin important political-economic leverage over the continent (see EDM, April 11).
On May 3, Germany became the first EU country to begin building its portion of Nord Stream Two—in its Baltic Sea port of Lubmin (Pipeline-journal.net, May 3). The construction started before Sweden and Finland signed off on the pipeline running through their waters. The Lubmin work was a poke in the eye to both the European Commission and European Parliament, both of which oppose the project (Europarl.europa.eu, April 11).
By pursuing the pipeline, Germany is also defying the United States and Ukraine. Washington has threatened sanctions against the Nord Stream Two project’s five European partners—Engie, OMV, Shell, Uniper and Wintershall. Moreover, US President Donald Trump called Berlin hypocritical for supporting a Russian revenue project while enjoying the benefits of the North Atlantic Treaty Organization’s (NATO) protective umbrella against Moscow (Whitehouse.gov, April 3).
Russia embarked on Nord Stream to reduce its reliance on gas pipelines to Europe that run through Ukraine. If Russia is able to entirely shift its export volumes away from the Ukrainian pipeline network, Kyiv stands to lose billions of dollars per year in gas transit fees. On a trip to Berlin in early April, Ukraine’s President Petro Poroshenko again failed to persuade Merkel to pull out of the Nord Stream Two project (Kyiv Post, EurActiv, April 10). She has continued to try to soothe both Ukraine and those EU countries worried that Nord Stream Two will not only undermine Ukraine’s economic viability but also keep the European continent dependent on Russian gas. In a meeting with Slovakia’s Prime Minister Peter Pellegrini, Merkel tried to square the circle by calling for “constructive and long-term solutions aiming to keep Ukraine a transit country for Russian gas” (TASS, May 2).
Meanwhile, Russia has chosen a general contractor for its segment of Nord Stream Two—Stroytransgaz, half-owned by President Vladimir Putin’s billionaire friend Gennady Timchenko (RBC, May 3). And Gazprom’s deputy CEO, Aleksandr Medvedev, has even said on Russian TV that he would not rule out a Nord Stream Three, if there is European demand (Vesti, April 24).
So they make less profit or sell at cost, Germany still gets cheaper gas and oil and drives market prices lower so everyone else benefits from lower prices as well.
As for Ukraine, let Nuland take care of Ukraine out of her share of the Hillary/Obama billions they stole. When they can't siphon off gas to make a buck and claim it's Russia short changing Europe the country will finally shatter into the three or four pieces it's been destined to break apart into ever since it became independent.
They didn't establish a Federal system but instead vested all power in Kiev so, now they reap what they sowed.
Ya' know, it's a funny damn thing that the Free Traitors are all for trade with China, which is still absolutely Communist, and all of East Asia because, "trade will open them up and gradually make them more democratic and Westernized", but they damn sure don't apply that same rule to Russia. Well, unless they have a crowd of Harvard thieves and their hand picked Russian criminal oligarchs under their thumb to pick the choice bits for themselves. Odd that China doesn't let them rape China and that's all good but when Russia stopped the thieves they became "evil" all of a sudden.
Talk about no level playing field. In real terms, China spends more on their military than Russia does but, meh, no biggie, just keep shipping jobs to China and sanctioning Russia because that's how, "free trade makes countries more democratic" works.
The US has thirty years of stupid crap to recover from and Trump seems to be the only one that sees the whole damn web of lies for the contradictory mess that it really is.
JMHo, and everyone has one