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Crimea's Economy Summarized

Tyler Durden's picture




 

As the clock ticks down to tomorrow's Crimea referendum, where residents will vote to align with Russia or to stay in Ukraine, Russia Today looks at what the sunny Black Sea peninsula can offer economically and what ties it has with Moscow and Kiev. At first glance, Crimea has certain problems - a lack of energy, and more dangerously, freshwater resources. The republic's annual GDP is only $4.3 billion - 500 times smaller than the size of Russia’s $2 trillion economy. However, whatever the results of the referendum are, fixing the dilapidated state of infrastructure and transport could offer a real investment opportunity for both Russian companies and Crimean entrepreneurs.

 

 

But Tourism and Energy are key to its future:

Tourism

The backbone of Crimea’s local economy is its bustling tourist industry, which draws in 6 million visitors per year during the summer season. But currently, 70 percent of the tourists are from Ukraine, and only 25 percent from Russia. Political rifts between Russia and Ukraine could turn off tourists, with tourism expected to drop by 30 percent this year.

However, if Crimea becomes a part of Russia it’ll become a more attractive holiday destination for Russia’s population of 142 million, whose per capita income is more than three times Ukrainians', according to World Bank estimates.

The average Ukrainian salary was 3148 Hryvna per month ($331) in February 2014, according to the Ukrainian Bureau of Statistics. In Crimea, the average is 2693 Hryvna ($283), whereas in Kiev, workers make nearly double, 4783 Hryvna ($503).

Oil and Gas prize

The big economic prize in Crimea lies to the south, in the Black Sea natural gas fields.

Extraction from these fields has the potential to be substantial - up to 7 million tons in annual production capacity, by Bloomberg estimates.

US ExxonMobil and UK/Dutch Shell have also been in talks with Ukraine about deepwater offshore oil drilling, but the only problem is, all this oil is located under Crimean waters. The deal is estimated at $1 billion.

ExxonMobil’s Black Sea offshore plans are currently on hold, senior vice president Andrew Swiger told investors at an early March meeting.

On Thursday, Crimea’s authorities took under their umbrella Ukrainian oil and gas fields in the Black and Asov seas, according to the speaker of Crimea’s parliament, Vladimir Konstantinov.

He supports Russia’s Gazprom taking control of the oil and gas assets.

"Russia, and Gazprom, should take care of the oil and gas production. It's not our issue," said Konstantinov, as quoted by RIA Novosti.

 

But as Russia Today notes, Sergey Aksyonov, Crimea’s Prime Minister and an advocate of joining Russia, has the hope that breaking away from Ukraine will transform the economy for the better. Aksyonov cited Singapore, which is an independent city-state, as an example to follow.

...

Crimea may not follow the same success path, but an option to boost growth is to make Crimea a special economic zone – with less taxes and financial regulation – which could spur growth and attract foreign investment. In 2005, Russia passed a law that allows for special economic zones, and has toyed with setting one up in the Far East, but so far, none have been established.

 

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Sat, 03/15/2014 - 20:22 | 4553374 ronron
ronron's picture

just listended to an interview with turd and the jackass. they showed disrespect for PCR. selling subscriptions. fuck these johny come lately's. 

Sat, 03/15/2014 - 20:51 | 4553495 prains
prains's picture

are you sure you weren't in the bathroom listening to yourself?

Sat, 03/15/2014 - 20:56 | 4553510 ronron
ronron's picture

speaking from your mothers basement. send turd a cheque sucker. hey fuck send one to the jackass. can you forge your moms name?

Sat, 03/15/2014 - 20:58 | 4553518 prains
prains's picture

do you pose Hulk Hogan style after you type?

Sat, 03/15/2014 - 21:04 | 4553534 ronron
ronron's picture

no i junk up front. loser.

Sun, 03/16/2014 - 00:15 | 4553955 prains
prains's picture

no your junk is up front, take a look in the mirror

Mon, 03/17/2014 - 04:58 | 4557619 svayambhu108
svayambhu108's picture

I guess across Soviet Union all the industry was on the majoritary russian's teritories, see Transistria.

 

Sun, 03/16/2014 - 17:30 | 4556183 JuliaS
JuliaS's picture

You misspelled "moron" when making your avatar.

Sun, 03/16/2014 - 06:44 | 4554319 silvermail
silvermail's picture

Dear ronron,

I wonder why your health care does not increase your dose of tranquilizers for you?

I'm sure it would help you.

Sat, 03/15/2014 - 20:24 | 4553379 williambanzai7
williambanzai7's picture

Sat, 03/15/2014 - 20:27 | 4553397 ronron
ronron's picture

as usual. you nail it.

Sat, 03/15/2014 - 20:36 | 4553441 negative rates
negative rates's picture

Really? Cause I threw him under the bus.

Sat, 03/15/2014 - 21:15 | 4553564 ronron
ronron's picture

nail guns are more fun.

Sat, 03/15/2014 - 21:45 | 4553633 negative rates
negative rates's picture

Until they are'nt, you can't refill those empty chambers, and there is hell to pay if it shows ANY signs of dieing.

Sat, 03/15/2014 - 21:10 | 4553553 TahoeBilly2012
TahoeBilly2012's picture

Has Rand lost his mind? I just read his Time blathering. I donated and made calls way back when and I am disgusted with him. Is everyone fucking crazy in DC? 

Sat, 03/15/2014 - 21:12 | 4553556 ronron
ronron's picture

yep. all nuts.

Sat, 03/15/2014 - 21:26 | 4553594 Bonapartist
Bonapartist's picture

It happened on his trip to Israel. If you are seeking change from ANY elected official in the US you are kidding yourself.

Sun, 03/16/2014 - 00:59 | 4554031 Kirk2NCC1701
Kirk2NCC1701's picture

Yup, and if you also visit the Queen (like Romney, Obama and Merkel), you KNOW you're gonna have a "Come to Moses" meeting.

Sat, 03/15/2014 - 21:47 | 4553635 Volkodav
Volkodav's picture

Yes

almost totally

I think Kunninich speaking out against...

Sun, 03/16/2014 - 01:05 | 4554046 Schmuck Raker
Schmuck Raker's picture

"Is everyone fucking crazy in DC? "

It's generally better for a trick question to be less obvious

Sat, 03/15/2014 - 20:48 | 4553484 ronron
ronron's picture

he needs a sand wedge in his hand. for a snow man.

Sat, 03/15/2014 - 20:52 | 4553498 negative rates
negative rates's picture

Needs more like a one iron.

Sat, 03/15/2014 - 21:09 | 4553546 LMAOLORI
LMAOLORI's picture

 

 

That should be an EMPTY SUIT in the middle

Sat, 03/15/2014 - 22:21 | 4553717 sunaJ
sunaJ's picture

...or a teleprompter for the head.

 

Sat, 03/15/2014 - 22:43 | 4553763 zhandax
zhandax's picture

The shrunken head seems fitting, though.

Sun, 03/16/2014 - 07:49 | 4554369 silvermail
silvermail's picture

I wonder how long it will be before these people in Donetsk, will kill the Nazis, just as the Nazis were killing people in Kiev?
http://www.youtube.com/watch?v=LlaxaumUAZM
http://www.youtube.com/watch?v=LlaxaumUAZM

I specify, Donetsk - is not the Crimea. But the power of Kiev fascists, people in Donetsk also do not recognize.

Sun, 03/16/2014 - 17:31 | 4556188 JuliaS
JuliaS's picture

Beetlejuice, beetlejuice, beetlejuice.

Sat, 03/15/2014 - 20:30 | 4553389 Joenobody12
Joenobody12's picture

How about export some fish to feed the residents of Fukushima.

Sat, 03/15/2014 - 20:27 | 4553394 IridiumRebel
IridiumRebel's picture

Let's go to war over a great place to fucking holiday!

Sat, 03/15/2014 - 20:32 | 4553420 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Desalinization plants could be a profitable investment opportunity.

Sat, 03/15/2014 - 20:48 | 4553486 Boomberg
Boomberg's picture

Yes they could build a plant on the coast and dig a freshwater canal inland to Simferopol. It would be called Crimea River. 

Sat, 03/15/2014 - 20:39 | 4553428 CrashisOptimistic
CrashisOptimistic's picture

The ton to barrel conversion for oil is 7.  So the claim is production of 49 million barrels/year, which is over 100K bpd.

At $110 Brent, that's billions per year.  

I question the estimate.

Sat, 03/15/2014 - 21:10 | 4553433 news printer
news printer's picture
Ukrainian Army BEGGING for money


Support Ukrainian Army – Call 565

| 15.03.2014 |  |12:57|

Saturday, March 15. UKRAINE – Action on logistic and medical support for Ukrainian Armed Forces. Just call ‘565’ from mobile phone and transfer UAH 5 for needs of the Ukrainian Army.

If you want to transfer other amounts there have been opened accounts:

Beneficiary: Ministry of Defense of Ukraine

Code of Single Register of Enterprises and Companies of Ukraine: 00034022

Bank: State Treasury Service of Ukraine, Kyiv

Sort Code MFO: 820172

Registration accounts:

31254307218611 – logistic support

31257304218611 – medical support

And they just Repelled A Russian Army "Invasion"?

They are out of money.

http://www.mil.gov.ua/index.php?lang=en&part=news&sub=read&id=33049

Sat, 03/15/2014 - 21:31 | 4553601 Bonapartist
Bonapartist's picture

I'd help out but I just made a large donation to Hezbollah. 

Sat, 03/15/2014 - 22:26 | 4553728 sunaJ
sunaJ's picture

Hey, don't speak so magnanimously - tax dollars are an extortion, not a donation. :)

 

Sun, 03/16/2014 - 00:30 | 4553979 Independent
Independent's picture

They are broke because they shipped all their gold to the USA.  Also as far as those priceless Schythian gold artifacts I am sure they will find their was to safety deposit boxes belonging to Yani and the rest of the Matzo Mafia Clan including Nuland's

Sun, 03/16/2014 - 00:42 | 4553999 news printer
news printer's picture
5 UAH = 0.5 $
Sun, 03/16/2014 - 01:13 | 4554059 Kirk2NCC1701
Kirk2NCC1701's picture

Well, the $1Billion that Kiev would like, as would Exxon, could be paid with the 25 tons of Chinese gold that was on the Malaysian flight.

Do the math: 25 tons is 25000 kg. At $1350/Toz., that's a 1 BILLION DOLLAR HEIST.

You'd need help from the Inside though... E.g., keep a bunch of people on Standby, even though the seats are available, the co-Pilot would have to take out the Captain, the passengers would have to asphyxiate at Max. Altitude, evade commercial radar at select points, and fly for a bunch of hours to a "friendly" airstrip (like Diego Garcia).

Then you'd have to get the plane maker (Boeing) to keep quiet for a few.days about the real-time engine telemetry (vital signs) and GPS track.

Kerry to China: "About your UN vote on Crimea... we think we know where your gold is, thanks to Boeing and NSA/DOD data..."

Sun, 03/16/2014 - 11:00 | 4554747 Bonapartist
Bonapartist's picture

Oceans 14

Sat, 03/15/2014 - 20:37 | 4553445 ebworthen
ebworthen's picture

"US ExxonMobil and UK/Dutch Shell have also been in talks with Ukraine about deepwater offshore oil drilling, but the only problem is, all this oil is located under Crimean waters. The deal is estimated at $1 billion."

Ah...now we know why the EU and John Kerry have their panties in a bunch.

Sat, 03/15/2014 - 23:18 | 4553481 CrashisOptimistic
CrashisOptimistic's picture

The numbers don't add up.

$1 billion deals in oil are always configured to be something like $15 million to do some seismic studies, then if they are promising another $30 million to drill a hole or two.  Then if they are favorable more money and more money.

You have to jump thru a lot of hoops to get to the $1 billion, which is why signing such a deal means nothing.

The estimates in the chart look shaky.  People never estimate flow rates.  They only estimate reserves.  The flow rate can't be known without core samples and other drilling results

 

Sun, 03/16/2014 - 16:10 | 4555921 windcatcher
windcatcher's picture

 

In reply to crashisotimistic: Your statement “the flow rate can't be known without core samples “proves that you are an idiot. Ha. Ha.

 

You make a good example of how an idiot full of shit can score 15 up ticks on ZH with dumbfounded idiocy. Ha

Sun, 03/16/2014 - 19:56 | 4556687 zhandax
zhandax's picture

The amount of oil isn't a factor.  The currency it is sold in is.

Sat, 03/15/2014 - 21:15 | 4553562 windcatcher
windcatcher's picture

In reply to ebworthen: 

Gee, I wonder if the 10 billion dollar FRACKING deal recently signed between the Ukraine and Chevron/Shell will have an effect on Crimea’s economy?

 

http://www.aim.org/newswire/chevron-signs-10-billion-fracking-deal-with-ukraine/

 

Sat, 03/15/2014 - 23:26 | 4553849 CrashisOptimistic
CrashisOptimistic's picture

It's like the $1 billion above.  It's a $5 million deal.  Not $10 billion.  Seismic studies will be done, and nothing may be found.

Five years ago exactly the same geology was explored in Poland.  The hype about the big deals they were signing with Exxon and ENI was just as loud.  Exxon and Eni drilled some exploratory wells.

Found nothing.  Pulled out and left last January.

The crushing lesson of modern reality is that oil is not everywhere.  It's much more rare than it used to be.  Phrasing things as "$10 billion dollar deals" implies that "well there must be something there or $10 billion would not be changing hands". 

$10 billion isn't changing hands.  The money is incremental, and it shuts off to zero quite soon when there is nothing there, long before even the first 100 milion, let alone billions.

Sun, 03/16/2014 - 00:01 | 4553932 windcatcher
windcatcher's picture

 

In reply to crasisoptimistick: Your full of appologetic bull-shit dude, there is big difference between a million dollar deal and a billion dollar deal; you are the one who is out of touch with reality.--Ohhh, you say, we have to spend money to make it happen. Ha Ha.

 

The mode of operation for IMF austerity in Ukraine is this: Chevron is to receive the three oil lines for FREE. A German corporation is to receive the steel and coal. The Ukraine People face austerity with 50% rise in heating and cooking oil, and cuts in retirement and social services. The Ukrainian farm land is to be sold to foreign corporations.

https://www.youtube.com/watch?v=Xo0f2KW_PJI

 

Sun, 03/16/2014 - 09:04 | 4554305 Urban Redneck
Urban Redneck's picture

Without reading the actual contract/MOU underlying the deal (whose signing was moved up a month under mysterious circumstances)- it was for $350 million in Exploration Investment with a potential for $10 Billion in Production investment.  There would be milestones within the $350m that must be met before even the whole $350m is spent.  Furthermore, privatizing the 50% of Naftogaz that isn't already owned by a certain oligarch is likely to trigger a MAC clause within the contract (which may be desirable to said certain oligarch given Naftogaz's Capex plans announced at the beginning of 2012).  

People who think they have experience by reading books are dumb enough, people who cite YouBoob videos as an argument of how things actually work are in a whole another league of stupid.

Sun, 03/16/2014 - 12:49 | 4555098 windcatcher
windcatcher's picture

 

In reply to urban idiot and shit for brains: Neither one of you corporate apologist mouth pieces have presented an argument with fact just your vague, ”its not real”

 

Like all investments in oil and gas exploration and production there are thresholds in investment and return on investment; you idiots seem to think that concept is somehow new. Ha Ha.

 

The standard oil and gas deal goes like this: The oil company invest in exploration and production and the host country receives 50 % of the production for a certain amount of years with options to extend the contract for additional years. Yes, I am stupid because I read books like the Aramco hand book that details such contracts. Ha Ha.

 

You see Nulend standing in front of a huge Chevron banner announcing that the USA has spent 5 billion dollars on Ukraine and you want people to think it is not real! 5 billion dollar expenditure for what? Secure a 10 billion dollar oil and gas deal?

 

You Chevron drone idiots will argue that the USA didn't spend all the 5 billion dollars all at once so it really isn't a 5 billion expenditure to privatize and sack out the Ukraine. Ha Ha.

 

Under IMF rule the 50% in oil and gas reveniues go directly into the IMF just to pay the interest and the principle will never be paid.

Sun, 03/16/2014 - 14:17 | 4555475 g speed
g speed's picture

boy am I stupid--I thought oil and gas mineral rights came first?? like in who owns it then lets deal----but hey--learn every day

Sun, 03/16/2014 - 21:25 | 4556725 Urban Redneck
Urban Redneck's picture

Cite the EXACT fucking IMF rule idiot, or shut the fuck up.  Then try actually negotiating E&P contracts (which are completely separate from the $5B Nudelman was yapping about). 

Sat, 03/15/2014 - 21:42 | 4553628 Lost Word
Lost Word's picture

Royal Dutch Shell = Rothschild ?

Sun, 03/16/2014 - 00:07 | 4553943 Freddie
Freddie's picture

I thought it was the royal Dutch family and BP was the Red Shield klan of Satan but I am sure the Red SHield owns a lot more.

Sun, 03/16/2014 - 06:39 | 4554316 Zwelgje
Zwelgje's picture

Maybe the Dutch royal family is just another front like J.P. Morgan was in America.

Sat, 03/15/2014 - 20:40 | 4553453 ronron
ronron's picture

so i,m junked for the paper boys. fuck you.

Sat, 03/15/2014 - 20:53 | 4553499 prains
prains's picture

you are junked for being a one week old turd, and the smell is bad

Sat, 03/15/2014 - 21:00 | 4553523 ronron
ronron's picture

nope. i was junked by idiots like yourself. you will come in handy.

Sun, 03/16/2014 - 00:47 | 4553914 prains
prains's picture

not sure you're going to make it in fight club, especially with faux gold nipple clips. it's not really shouting t.o.u.g.h.g.u.y

 

i'm thinking you play the trombone

Sat, 03/15/2014 - 21:05 | 4553527 windcatcher
windcatcher's picture

 

Gee, I wonder if the 10 billion dollar FRACKING deal recently signed between the Ukraine and Chevron/Shell will have an effect on Crimea’s economy?

 

http://www.aim.org/newswire/chevron-signs-10-billion-fracking-deal-with-ukraine/

 

Sat, 03/15/2014 - 21:18 | 4553573 Son of Captain Nemo
Son of Captain Nemo's picture

Get your "hipboots" on and your shovels out. 

More bullshit from the "Jew Down Under"...  My how hard they are trying to put impediments in the way of this referendum!

http://www.foxnews.com/world/2014/03/15/2-dead-in-ukraine-shootout-reportedly-between-pro-russian-protesters-and/

Sat, 03/15/2014 - 21:37 | 4553599 Volkodav
Volkodav's picture

Fox corrupted

Sat, 03/15/2014 - 21:23 | 4553583 EatYourCornTake...
EatYourCornTakeyourPill's picture

My favorite! RT posts! Perfect. The best unbiased news out there. We should just rename this site to Russia Today 2.

Sat, 03/15/2014 - 21:35 | 4553609 Bonapartist
Bonapartist's picture

You prefer you media lies "Fair and Balanced" or you're more of a CNN/NBC kind of guy?

Sat, 03/15/2014 - 21:50 | 4553646 Volkodav
Volkodav's picture

We?

Sun, 03/16/2014 - 04:34 | 4554234 noless
noless's picture

Great book.

Sat, 03/15/2014 - 22:01 | 4553674 MarsInScorpio
MarsInScorpio's picture

Eat:

 

You are a US/EU/CIA/FED/ECB/MIO2C troll.

 

Get lost.

-30-

Sat, 03/15/2014 - 21:23 | 4553584 PHantomofthemarkets
PHantomofthemarkets's picture

Bridge crucial?

There is no bridge between the UK and Europe.

And until some years ago they were still digging the tunnel...

Sat, 03/15/2014 - 21:28 | 4553598 Missiondweller
Missiondweller's picture

So Zerohedge is just posting RT propaganda now?

Is the editor in Russia or something?

Sun, 03/16/2014 - 00:24 | 4553970 Missiondweller
Missiondweller's picture

Looks like from the down arrows the answer is yes. Along with the readers.

Sat, 03/15/2014 - 21:41 | 4553623 Son of Captain Nemo
Son of Captain Nemo's picture

Oh no Tyler!

The "money lenders" or should I say "money changers" are getting nervous about The Diplomat, ECFR, WSJ and Reuters having to share time with the "Commie/terrorist" news organization RT...

Hope this doesn't mean they will be shutting you down if you don't cooperate?

Liz Wahl and Abby Martin Live

Sat, 03/15/2014 - 21:45 | 4553631 palmereldritch
palmereldritch's picture

Estimating the value of Crimea's GDP in a risk/reward calculation is a bit like using a night watchman's salary to determine the value of the factory asset he is guarding.

In this case the asset is the South stream pipeline 

http://eurasianenergyanalysis.blogspot.ca/2012/06/south-stream-advancing...

http://www.naturalgaseurope.com/south-stream-eu-energy-security-igor-ale...

and the asset valuation appears to be in steady flux.

Good background here on EU maneuvering over their new satellites for regulatory control of the South stream pipeline (note the .ru source...Pravda!...old school propaganda...)

http://english.pravda.ru/business/companies/16-03-2014/127112-south_stre...

 

Sat, 03/15/2014 - 21:52 | 4553650 Son of Captain Nemo
Son of Captain Nemo's picture

Great background on why the West is ready to start WWIII.

Thanks for these reads.

Sat, 03/15/2014 - 21:59 | 4553670 palmereldritch
palmereldritch's picture

Cheers!

Sat, 03/15/2014 - 22:03 | 4553679 Bonapartist
Bonapartist's picture

I don't get the EU's posturing- Pooty-Poot can turn off the gas valve to these stupid EU fucks and still sell his oil to a good part of the rest of the world(China, India, etc). Russia has a long history of getting fucked by Western Europe so Pooty knows what he is dealing with.

Sat, 03/15/2014 - 22:30 | 4553723 Son of Captain Nemo
Son of Captain Nemo's picture

B

That very well might be one of the cards that Russia will play if the U.S. and EU keep ratcheting up the pressure with "sanctions".

I don't believe that the shale production coming out of other parts of Eastern Europe especially Poland is available or at least not in the foreseeable future, that is anywhere near the equivalent in terms of efficiency and capacity that Russia is giving them now. Germany in particular has the most to lose with it's heavy industry if the U.S. gets it's way. 

Why Germany doesn't use this as the excuse they need to leave the EU is beyond me. It's the perfect time and the German people should be demanding their government's "exit".

The United States has threatened them with something inside their borders if they don't capitulate, and with everything else we've witnessed that our government has already done in the ME, and everywhere else for that matter, how could anyone doubt the veracity of our paranoia and delusional behavior?

Wouldn't it be the best moment of all if Merkel "snapped" under the pressure and made a very public statement that the U.S. threatened her Country with a "dirty bomb" going off in a major German city if she "didn't do what she was told"?  I've often wondered why nobody in the U.S. Government like a Ron Paul or Dennis Kucinich didn't try that one after 9/11 -but then we already have our answer to that I'm afraid!

 

Sat, 03/15/2014 - 22:48 | 4553769 Bonapartist
Bonapartist's picture

SoCNemo -Germany can't leave the EU because if they went back to their own currency it would rip higher like CHF- they need the S Europe mopes to keep the Euro (relatively) cheap- follow the $.

Sat, 03/15/2014 - 23:27 | 4553853 Son of Captain Nemo
Son of Captain Nemo's picture

they need the S Europe mopes to keep the Euro (relatively) cheap- follow the $.

One can only speculate as their unfortunate choice to stay with the Euro has only exacerbated the situation for them over time. 

When you know your car is already off the 1,000 foot cliff and accelerating to it's demise with the help of gravity it doesn't really matter if it's water at the bottom or concrete!  Germany has made their situation far worse by sticking it out with their "handlers" and will rule the day they didn't bow out 7 to 10 years ago.

The announcement that 1,500 tons of Au would take 7 years to be returned should have sounded the alarm to send them on their way to the Deutschemark.  Maybe they started asking for it 10 years ago and having it repeatedly fall on deaf ears should have been the "red flag" to go solo?  One can also reasonably argue with certainty that if Germany walked out first, the rest would have followed suit.

Had Germany had that level of courage and independence in hindsight to cut their losses earlier they may not have had to face a war with the U.S. using their borders to start it.  I’m sure many Germans are contemplating those kinds of thoughts these days with John Kerry as their war spokesman who will be living 4,000 miles away when "the shit" he helps to start gets underway!

 

Sun, 03/16/2014 - 00:32 | 4553987 Bonapartist
Bonapartist's picture

Germany was emasculated by the likes of Morgenthau (see what Patton thought about that POS and why Patton was murdered) and his ilk after WWII and the pride and nationalism of former European empires was beaten out of them by the NWO/socialist/communist technocrats who now run the whole shit show out of Brussels.

Sat, 03/15/2014 - 22:02 | 4553677 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Sadly the pravda is probably the least biased concerning the information there in relation to South Stream project. Nabucco isn't completely dead just yet, Ukraine gas fields are the last gas fields in play that can be pretty much immediately hooked into Nabucco using existing pipeline infrastructure and a strategic point to cut off Russian gas into the feeder. Once they got blocked south in Syria this is it for that project. Lot's of money already tied up in it and they aren't going to let it go this easily....

Sun, 03/16/2014 - 00:01 | 4553929 palmereldritch
palmereldritch's picture

Yep.  Nabucco in Syria was a real cock block. From a  geo-petro-political perspective, Russian preservation of Assad appears to be protection of Russian interests by the blocking/delaying of Nabucco through that transit path.

 

 http://www.wnd.com/2013/09/is-this-what-syria-war-really-about/

Is the reported willingness of Arab Gulf states to fund a U.S. military campaign in Syria really about major oil and gas interests that run through the country?

The potential for trillions of dollars of energy revenue in deals that snake through Syrian territory may be a motivating factor for the U.S., Russia, Turkey and Arab states in the current Syria crisis...

In a hearing earlier this week, Secretary of State John Kerry said Arab counties have offered to pay for any U.S. military intervention in Syria.

“With respect to Arab countries offering to bear costs and to assess, the answer is profoundly yes,” Kerry said. “They have. That offer is on the table.”

In fact, some of them have said that if the United States is prepared to go do the whole thing the way we’ve done it previously in other places, they’ll carry that cost,” Kerry said. “That’s how dedicated they are at this. That’s not in the cards, and nobody’s talking about it, but they’re talking in serious ways about getting this done.”

Beside the prospect of its own gas field, Syria is also one of the most strategic locations for natural gas pipelines to flow to Europe.

Qatar, home to the world’s largest gas field along with Iran, has proposed a gas pipeline from the Gulf to Turkey that would traverse Syria to the Mediterranean, with the gas then being shipped to Europe.

However, Assad in 2009 refused to go along with the plan, instead inking deals with Russia and Iran.

Syria is site of the proposed construction of a massive underground gas pipeline that, if completed, could drastically undercut the strategic energy power of U.S. ally Qatar and also would cut Turkey out of the pipeline flow.

Set to open in 2016, Iran, Iraq and Syria signed a deal in 2010 to construct the 3,480-mile natural gas pipeline connecting Iran’s South Pars field to European customers...

Iranian Deputy Oil Minister Javad Oji announced the pipeline would ultimately have the capacity to pump 3.9 billion cubic feet of natural gas per day. He told Iran’s official Mehr News Agency the route would “pass through Iran, Iraq, Syria, the southern Lebanon territories and also through the Mediterranean basin,” with a refinery and infrastructure to be built in Damascus.

A key portion of the Islamic pipeline is concentrated on the Syrian ports, which would export directly to Europe out of the Eastern Mediterranean.

Russia has reportedly built up its naval presence along the major Syrian ports of Latakia and Tartus.

The Islamic pipeline is viewed as a major threat to Turkey, which has long desired to become the main bridge for natural gas and oil between the East and the West.

Turkey, however, is a key player in the Nabucco natural gas pipeline, which is being constructed to transit natural gas to Europe from the Central Asia and Caspian regions. The pipeline is set to traverse Azerbaijan, Georgia, Turkey, Bulgaria, Romania and Hungary, and end in Austria. Turkey has been a key supporter of the rebels fighting Assad’s regime, while Qatar has reportedly been supplied arms and training to the rebels.

If Assad can be deposed, Turkey and Qatar would like the Nabucco pipeline to run through Syria.

[Emphasis mine]


Has the groundbreaking for construction in southern Lebanon begun?

http://www.reuters.com/article/2014/03/14/us-israel-lebanon-violence-idU...

 

Sun, 03/16/2014 - 00:46 | 4554007 Greenskeeper_Carl
Greenskeeper_Carl's picture

Gotta love the Arab countries offering to pay the costs of military action in Syria. They seem to not understand our last 2 military actions in the Middle East are already at a combined total of 4-6 trillion, probably more, and climbing every day. And if they are so adamant about yet another war, they can fucking do it themselves. Which brings me to John Kerry. Young kerry Testifying before congress about the follies of a senseless war, and how wrong it is sending our you g men overseas to kill or be killed by strangers thousands of miles away who posed no threat to us. Fast forward 45 years or so. Now that it's not his ass on the line getting shot at, he hasn't yet found a war or potential war he hasn't liked. Sending young men off to die and kill, doing the exact same thing you were unwilling to do. The hypocrisy is astounding, and I have yet to hear anyone call him out on it.

Sun, 03/16/2014 - 01:25 | 4554024 palmereldritch
palmereldritch's picture

He's S+B.  Those members that believe in it, live for death.

Sun, 03/16/2014 - 11:05 | 4554758 Son of Captain Nemo
Son of Captain Nemo's picture

p

Thanks again.

Consider this the "silver lining" to the cloud. 

I don't think our boyz and girlz in the U.S. Armed Forces are ready to do this one if they weren't prepared for the "other one" last September.  I love the fact that the British press were the first to hold this story out their when none of the U.S. based news organizations would touch it, then 48 hours later CNN informed the American public that it was hoax by the Syrian Government....

I also think our strategic missile command has had too many shake ups in the morale department to take orders from the likes of this clown who is most likely a dual citizen who just 20 years ago would have gone to jail as well as the lawmakers in D.C. for allowing him to have the clearances and access for that job!

Sat, 03/15/2014 - 22:57 | 4553804 22winmag
22winmag's picture

I really can't stand "GDP" in any way, shape or form.

 

It's arguably the most bullshit figure ever, and in reality, it's little more than a yardstick for waste and inefficiency.

Sun, 03/16/2014 - 00:34 | 4553990 prains
prains's picture

GDP is nothing but a measure of propoganda statists have to use to talk their book

Sun, 03/16/2014 - 00:36 | 4553991 prains
prains's picture

GDP is nothing but a measure of propoganda, cramers have to use to talk their book

 

and they can both lick my double ball post

Sun, 03/16/2014 - 01:08 | 4554052 Schmuck Raker
Schmuck Raker's picture

Hey Tyler, can you please tell us the specific questions/options on The Referendum ballot?

Sun, 03/16/2014 - 13:39 | 4555305 Schmuck Raker
Schmuck Raker's picture

"Crimea's 1.5 million voters have two options: union with Russia or giving their region, which is controlled by pro-Kremlin politicians, the broad right to determine its own path and choose relations with whom it wants - including Moscow."

So, remaining part of Ukraine not an option on the ballot. Surprise, surprise.

Sun, 03/16/2014 - 01:16 | 4554061 Schmuck Raker
Schmuck Raker's picture

GDP = $4.3 B
Budget deficit = $1 B

Politics and emotions aside(especially Putin taking more than just Crimea) maybe Ukraine is better off without Crimea. But I'm no Krugman.

Sun, 03/16/2014 - 03:10 | 4554133 Mineral-Invest
Mineral-Invest's picture

There are no nations. There are no peoples. There are no Russians. There are no Arabs. There are no third worlds. There is no West. There is only one holistic system of systems, one vast and immane, interwoven, interacting, multivariate, multinational dominion of dollars. Petro-dollars, electro-dollars, multi-dollars, reichmarks, rins, rubles, pounds, and shekels. It is the international system of currency which determines the totality of life on this planet. That is the natural order of things today. That is the atomic and subatomic and galactic structure of things today!

 - Frank Hackett

Sun, 03/16/2014 - 05:51 | 4554290 yt75
Sun, 03/16/2014 - 08:23 | 4554373 falak pema
falak pema's picture

Three threads govern the world : MIC/Energy--based on ME oil Nexus export surplus model (now more and more challenged by Putin's Russia)--- and petrodollar sustained $ hegemony of electronic, financialized Moneyhoney that generates the Caymanista based paper profits for Oligarchy; at the expense of the nation states and desensitized populations condemned more and more--apparently irredeemably, based on this 6 year dystopian momentum--to drowning in stagflation and then dire deflation.

But as the biosphere and earth's crust get degraded, add to that conundrum the upcoming food and water shortages in a world now heading to 9 B population AND 2° minimal temperature rise that will destroy eco systems bigtime.

That makes an awesome cocktail to digest and the US NWO, currently running the show, has its plate full of uncontrollable parameters now VYING to impinge those man made asymptotes of  peak conventional oil and peak reserve interest rates, like poisonous ivy creeping on to Jack's ever growing, fallaciously-Reaganomics-inspired Beanstalk, to suffocate its natural chrolophylled life line of entrepreneurial Economia. 

When those two daunting barriers to perpetual growth of NWO fiat dissemination and consumerista globalised gas guzzling are attained we will have reset, as even the blind will sing : The Emperor is truly STARK MAD and NAKED. 

Humanity, alas, always learns the hard way; in the eye of the cyclone.

When the Oligarchy Cyclops lose their only eye... to the javelins of their inevitable Nemeses.

Sun, 03/16/2014 - 10:48 | 4554718 Flakmeister
Flakmeister's picture

Crimean entrepreneurs??

Bwah, hah, hah, hah....

Now that is truly funny...

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