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"Russia Has Weaponized Gas In Response
To Their Weaponization Of Currencies"
by Epic Economist
"Putin is done playing around. By now it is no secret that Russia is weaponizing gas supplies in retaliation for the West’s weaponization of currencies. The Kremlin is doing everything in its power to add pressure on western nations and make Europeans finally throw in the towel – and they have two main strategies to achieve this. First, they’re maintaining uncertainty over the delivery of energy supplies. The truth is that Russia doesn’t have to cut flows entirely to cause damage – the prospect of going through the winter without Russian gas is enough to spark chaos in many countries. Secondly and much more worryingly, it seems that Russian officials are busy stoking social turbulence in places where soaring natural gas prices are forcing households into energy poverty. And many indicators suggest that they are succeeding.
On Friday, Gazprom announced the delivery of gas supplies through Nord Stream 1 would be halted due to a technical fault, mentioning difficulties repairing German-made turbines in Canada. But that turned out to be a smokescreen. The EU was forced to roll back some of the sanctions against Russia to allow the turbines to be repaired. Government heads assured that there was nothing that could prevent Gazprom from supplying the continent with gas other than Russia’s weaponization of its energy exports.
But none of this should come as a surprise: Russian officials have made it perfectly clear that they hope the worsening energy crisis plaguing Europe, the UK, and the US would undermine the West’s support for Ukraine. “Obviously life is getting worse for people, businessmen, and companies in Europe,” Peskov said. “Of course, ordinary people in these countries will have more and more questions for their leaders.”
Unsurprisingly, with neither side willing to step down, moments after Russia’s official statement EU Commission president Ursula von der Leyen, twitted that "Putin is using energy as a weapon by cutting supply and manipulating our energy markets", which of course is being done in response to the west's weaponization of currencies and capital flows. In other words, all western nations will continue to suffer. The global energy crisis is likely to reach catastrophic proportions, and higher energy prices will continue to fuel inflation and add more fuel to the cost of living crisis.
Several industry leaders have warned of devastating economic consequences should Russian gas be cut completely. At this point, all indicators are flashing red for the US, the UK, and Europe, where large swathes of the population are falling into energy poverty. Warnings about a global economic downturn this winter are growing louder. But still, governments are still running three steps behind — mostly because they spend too much time second-guessing Russia’s next moves. Instead, they should be paying closer attention to what Moscow is pushing for: social turbulence.
The numbers speak for themselves: In the U.S., 1 in 6 households are at risk of facing utility shutoffs because they can’t keep up with rising energy bills. In Germany, where natural gas prices climbed over 700%, average household bills could rise by between 500 to 1,000 euros this winter — and this could be a conservative estimate. In France, the government is urging consumers to ration energy. For millions of lower-income families in the West, expensive energy prices would force an impossible choice between buying food or fuel. The fact remains that if the West fails to find a comprehensive solution for its population facing financial stress, the impact on our social fabric will be absolutely disastrous."
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