from Wolf Street:
One of the threats, or perhaps the threat, hanging over the EU due to the sanctions fiasco has been the possibility that Russia could shut down the pipelines and stop deliveries of natural gas to European countries. It would be a way to escalate the crisis and force a solution of one kind or another.
It would do enormous damage to the Russian economy. What are they going to do with the gas that gets pumped on a daily basis to Europe, and particularly to the largest consumer, Germany? Inhale it? Because there is no infrastructure in place to export that gas in those large quantities to other customers that are not part of the pipeline system. It would cut foreign exchange earnings and government receipts. It would devastate Russia’s natural gas industry. And it would curtail any desire by other countries to ever rely on Russia’s energy exports.
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