Russia’s Invasion of Ukraine Leads to Massive Shift in Energy Trade Relations
The United States and the European Union have announced a plan to reduce the bloc's reliance on Russian fossil fuels. Under the deal, the US will increase its liquified natural gas (LNG) exports to Europe by 15 billion cubic meters this year, the White House said. The initiative was unveiled by US President Joe Biden and European Commission President Ursula von der Leyen.
That's great news, now here's hope that both EU and US will also bring back factories from China and limit exposure to them as well. Then the only main problems will be minerals from Russia and rare earth elements from China
Costs for energy are part of the input to all manufacture and transportation efforts. when Your competitors get energy at a far lower price it will have an effect on your competitiveness. China Russia and India will be making products at a far lower cost and will be able to sell them cheaper.
Let's keep this simple, the United States needs to be using every energy resource it has. This would be energy security for North America and Europe.
This would significantly decrease our allies dependence on oil and natural gas from Russia. Just remember people, energy security is also geopolitical security too.
"The Wall Street Cut". It is all about Nordstrom II. At the moment Russian gas flows through the Ukraine. Wall Street gets their cut. With a way around, the Wall Street cut doesn't get paid. Same for any economic activity in all countries in the world that use the Petro-Dollar or SWIFT. Wall Street gets a cut. Coffee Farmer pay, Beef in Argentina, they pay. Soy in Brazil, same thing. You name it it is traded in New York or Chicago. Therefore the "Wall Street cut" is maintained. It is often sold as "America protecting its Interests!".
