Many thanks to those who kept up the stream of commentary as some of us regulars took a holiday break. For readers who had a respite Spencer and Mort's posts on the unauthorized White House eavesdropping are must-reads. Mort speaks from personal experience about having his phone tapped by the President. He provides a watertight legal argument that Bush's actions are illegal, offering citations and history that will prove useful references as the investigations unfold. It's long, but well worth a look.
A brewing controversy boiled over today when a dispute between Russia and Ukraine over Russia's decision to end deep subsidies of Ukrainian natural gas prompted accusations that Ukraine was unlawfully siphoning gas supplies from a pipeline that serves most of Europe.
Several European countries including Serbia, Hungary, Croatia and Slovakia experienced dramatic drops in gas supplies, while France and other Western European nations faced smaller shortfalls. Facing heavy pressure from European Union officials terrified by the prospect of inadequate heating supply in mid-Winter, Russia has said that its state-controlled gas monopoly, Gazprom, will restore a full flow to Europe, though the fight over rates with Ukraine is unresolved. (Here's a good explanation of what natural gas is, for anyone who cares. Here's a a helpful CSM piece on the standoff).
Here's what a spokesman from a state-funded Russian think tank had to say about Russia's heavy-handed hydrocarbon diplomacy: "We have vast resources and they give us political influence . . .If we give a lower price to somebody, we have the right to demand political concessions . . . This may not be a great geopolitical policy, but it's better than nothing."
What's notable here:
- First, is its a powerful illustration of enduring Russian leverage over Ukraine, despite the Orange Revolution. Russia's move appears timed to influence the March Ukrainian elections, in which Yuschenko - facing challenges from the indomitable, meticulously braided Yulia Tymoshenko and his erstwhile pro-Moscow opponent, Viktor Yanukovych - has been running on a policy of standing up to the Kremlin. The fracas is expected to deepen polarization between the more nationalistic Western Ukraine and its more Moscow-oriented east.
- Second, its a sobering reminder of Europe's dependency on Russia. Europe gets 80% of its gas supplies via the Ukrainian pipeline, and 25% from Russia itself. German and US officials have raised concerns about Russia's "credibility" as a supplier in light of the dip, but that ignores the absence of alternatives to supply Europe's needs. Germany is on to this and is working on a massive pipeline project with the Russians.
- Third, its evidence of the rise of resource-driven international diplomacy spreading beyond the Middle East, where its held sway for decades. China's foreign policy is increasingly guided by its demand for fuel. Given our own feckless consumption habits, the same will be true for Washington. Over time, this has the potential to effect pretty seismic shifts in the global balance of power, shifts that are unlikely to favor the US.
- Fourth, coinciding with Russia's assumption of the G8 Presidency, this incident could mark the beginning of Russia's reemergence as a larger independent force in international relations, building on its control over energy to resist outside pressure for reforms, and to throw its weight around on other foreign policy matters (terrorism, the former Soviet Republics and Iran come to mind).
Lots to watch.