Skip to comments.Putin Wants Crimea's Oil and Gas Rights (Yep, It's all about the Oil)
Posted on 03/20/2014 5:24:26 AM PDT by bestintxas
Russian President Vladimir Putin was all smiles as he signed the annexation treaty between Crimea and the Russian Federation on March 18th that will allow the Crimea to be absorbed by Russia. In a speech to the Russian Duma, Putin congratulated the 82% of Crimea citizens voting by a 96% majority to secede from the Ukraine. But Putins Cheshire-Cat smile isnt just about welcoming two million more countrymen. The day before, Crimeas parliament nationalized Chornomornaftohaz and Ukrtransgaz, the two energy companies that control substantial offshore oil and gas reserves. Putin intends for Russia to make a profit on acquiring and developing Crimeas offshore oil and gas.
The Crimea is a lush region known for its palm-fringed seafront boulevards and rocky hills, but it receives subsidies for 85% of its electricity, 90% of its drinking water and most of its food. Putin has committed to continuing subsidies and lifting 560,000 Crimean pensioner payments from the Ukrainian average of $150 a month to Russia's minimum of $180. He also assured Crimean workers that average wages will rise from $270 as Ukrainians to the $660 average wages of workers in neighboring Krasnodar region.
Karen Vartapetov, an analyst at Standard & Poor's rating agency, calculated that Moscow will need to pay 38 billion rubles (just over $1 billion) a year to bring Crimea's per capita budget revenue to the same level as Russia's
(Excerpt) Read more at americanthinker.com ...
Anybody know how many other wars were started over the desire to gain more oil?
The gas and oil can be used to tranform Crimea for Russia from being a net burden into being a net asset.
Instead of living off the Russian federal treasury, a good part of the revenue from what’s beneath its waters can make it self-sufficient for decades to come.
Plus the extra revenues will help to cushion Russia from the effects of punitive Western sanctions.
Annexing Crimea is that much sweeter to the Kremlin. What’s not to like?
The referendum last week was about pocketbook issues, stupid. Its not much by Western European standards but living in Russia still meant a substantial rise in the standard of living.
I’m surprised the vote to join Russia wasn’t 100%.
“...about pocketbook issues...”
Personal finances will be worse for many in the Crimea. They will lose on the transfer of Ukrainian Hryvnia to Russian Rubles (already happening) and on many account transactions. They will lose money in beach and palace tourism with visas required for more nations. And as bad as Ukrainian bureaucrats are...Russain bureaucrats can be worse.
It is a geopolitical matter with oil being a substantial part of political board. There is gas,and water and land space and willing people that are on the board.
Putin will need a land route into Crimea almost immediately. There is that nice industrial region north and northeast of Crimea that will fill this need nicely. Then on to Estonia.
“All that is necessary for the triumph of evil is that good men do nothing.” (Edmund Burke)
The companies are miserably in debt. The US sued one of the major companies in 2013.
There are the drawbacks. Then there are higher pensions, wages and living standards. And with the Russian law now in effect, those changes will begin to be felt in a tangible way. When a country acquires sovereignty, it takes upon itself substantial obligations.
~~~Im surprised the vote to join Russia wasnt 100%.~~~
There’s always someone who doesn’t trust what the big government tells them.
Maybe we could give Detroit to the Russians.
It’s not all about oil. The Russian naval base is there.
“Its not all about oil. The Russian naval base is there.”
Yep, good place to serve as defense barrier for the oil fields that will be developed.
They are related.
Don’t forget, Russia also has a naval base in Tartus, Syria.
Not exactly the most stable of places these days....That probably increased the sense of urgency on Russia’s part.