Avatar of admin


The Russian Money Pipeline

February 3, 2015 in Economics

By Richard W. Rahn

Richard W. Rahn

Which country has the biggest interest in stopping the expansion of the oil and gas industry in Europe and North America? Answer: the Russian Federation is highly dependent — to the tune of several hundred billion dollars — on the export of these commodities, particularly to Europe.

It is rational for the Russians to spend upward of a few hundred million dollars to influence politicians to stop gas and oil projects in those countries, with the goal of limiting supply, and thus protecting the Russian revenue stream. It has been well documented and well reported over the past year (The New York Times has published in-depth articles) that Russian interests have used bribes, coercion and disinformation to get European politicians to prohibit or severely restrict gas and oil fracking in Europe.

There have been allegations and suspicions that the Russians were also putting major money into American environmental organizations to assist them in their efforts to stop the expansion of U.S. gas and oil production, but not much hard evidence — until now. Researchers at the Environmental Policy Alliance, however, have just produced a very solid, well-documented report, which shows how tens of millions of dollars from Russian interests apparently flowed from a dark company in Bermuda through opaque environmental bundlers, including the Sea Change Foundation, into major environmental lobbying organizations, including the Sierra Club, the Natural Resources Defense Council and the League of Conservation Voters. There have been a number of press stories during the past week on Russian support of American environmental groups, including a very detailed description of the money flows, by Lachlan Markay of the Washington Free Beacon.

Putin funds environmental groups to block U.S. oil and gas production.”

Both the House and Senate have now passed a bill to allow the building of the Keystone XL pipeline, which is largely designed to transport heavy crude from the Canadian oil sands to U.S. refineries (specifically designed to process heavy crude) along the Gulf coast — in part to substitute for the Venezuelan heavy crude they now refine. The White House said it will veto the pipeline bill, even though its construction can only have a positive jobs, safety and environmental impact (even according to the administration’s own studies). Pipeline or no pipeline, the heavy crude will still be produced by the Canadians and shipped by rail or truck to the United States, China or both …read more

Source: OP-EDS

Leave a reply

You must be logged in to post a comment.