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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (142311)	8/30/2008 3:11:01 AM
From: Wharf Rat	Read Replies (2) \| Respond to of 362769

Russia's powerful weapon: oil and natural gas Russia believes that its standing as the world's largest exporter of oil and natural gas is the most powerful weapon in its diplomatic arsenal. By Adrian Blomfield in Moscow Last Updated: 4:51PM BST 29 Aug 2008 Despite all its posturing, Russia needs European customers as much Europe needs Russian energy Photo: AP Ukraine, the Czech Republic, Belarus and Estonia have all seen either a total shut down or a reduction in Russian gas flows after annoying the Kremlin. Given its history of using energy supplies as an instrument of foreign policy, the possibility that Russia would respond to the current international crisis by disrupting gas and oil supplies to the European Union cannot be discounted. Yet for all the bombast, the effectiveness of Russian retaliation is often not quite as crushing as the Kremlin believes it should be. The true relationship between Russia and the EU is one of mutual dependence. The dwindling number of pragmatic voices in the Kremlin know that Russia needs European customers as much Europe needs Russian energy. Gazprom, the state energy giant, depends on sales to the EU for 70 per cent of its profits. Restricting exports would cost Russia billions. The hissing of the Russian snake might sound alarming. How venomous its fangs are, however, is a matter for greater debate. telegraph.co.uk.