Eurasia: A Geo-political re-alignment

[Magda Hassan]

You can't keep poking a stick in a nest of wasps without causing them to come out and play, I reckon.

With the events in the Ukraine and the consequences for the prospect of Russia responding to the continuing US and European sanctions gambit by restricting the flow of gas to Europe, my expectation was that gas prices would rocket.

Instead they've dropped.

One supplier has locked down their prices until 2016, and claim this will cost them £100 million - but "that's what their customers want", said a representative. It's complete bollocks of course. They don't usually give a toss what their customers think and usually squeeze them hard at every opportunity. For years, the six big energy suppliers have de facto been running a cartel -- which remains illegal.

But now, if we believe what they are saying, they're suddenly breaking out with a conscience?

Yeah, of course, they are. And snakes don't bite when disturbed...

I can only conclude that real pressure is being applied for this to have happened, because it is counter to the usual market reaction in such situations, where the price is jacked up.

Next we will see them paying all their taxes and closing their off shore accounts. This is of course complete bollocks. Business does not operate this way. Some one is subsidizing them. Would be good to find out who and how though. They did a similar thing with the oil prices with the effect to hurt Russia's oil exports. I also see BP offering to act as a negotiator between Russia and Europe. Ask Iran how well BP acted in the 1950's. Also tells us a lot about the state and role of corporations vs states.