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Wednesday, March 26, 2014 2:46 PM


Lithuania pleads to US Senate for Gas Exports, Complains of "Political Price" of Dependency on Russia


About the only good coming out of ridiculous tit-for-tat sanctions on Russia is the possibility of revised US energy policy, and Lithuania is pleading for it.

The BBC reports Lithuania Pleads for US Gas Exports to Counter Russia

Lithuania's energy minister has called on the US Senate to speed up the export of natural gas to Europe.

Jaroslav Neverovic said that Lithuania was being forced to pay a "political price" for being entirely dependent on Russian gas supplies.

In his statement to a US Senate committee, Mr Neverovic urged members to do everything within their power to release natural gas resources "into the world market".

"A law enacted in your country some 75 years ago denies us access to your abundant and affordably priced energy resources," he said.

The energy minister said customers in Lithuania were having to pay 30% more for natural gas than other European nations, because they were "beholden to a monopolistic supplier."

"This is not just unfair," said Mr Neverovic. "This is abuse of monopolist position."
OK But Wait Until 2020

That's quite the nerve complaining about the US monopoly when it is Russia that has the monopoly in Europe.

Moreover, it will take years for the US to get ready.

Edward Chow, a senior fellow at Centre for Strategic and International Studies, said Russian exports of natural gas were equivalent to "twice the combined capacity" of the seven US government approved liquefied natural gas (LNG) export projects, which would only be completed by the end of this decade.

OK Lithuania, you can have US natural gas. You just have to wait until 2020 to get it.

Be Careful About Agreeing to US Sanction Games

Inquiring minds may wish to read Russia Sanctions Lithuania for Supporting Ukraine.<
On Thursday morning the Lithuanian parliament condemned the military aggression of the Russian Federation in Ukraine and its occupation of the territory of a sovereign country. The parliament said that it strongly supports the sovereignty, independence, and territorial integrity of Ukraine and expressed political solidarity with the new Ukrainian authorities; they also supported sanctions against Russia, while favoring visa liberalization and the early signing of the European Union Association Agreement with Ukraine slated for next week. In response, Russia has temporarily suspended the import of food products into the Customs Union.
Putin Playing Cards Well

Given that Lithuania’s exports to Russia amount for a fifth of its total exports, perhaps Lithuania should have thought about supporting sanctions on Russia.

Speaking of "political price", it seems Lithuania brought this upon itself, and that Putin is playing his cards well.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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