U.S. determined to win portion of Europe's gas market and then raise prices - Russian deputy FM
VERONA. Oct 23 (Interfax) - The United States will not cease to impose sanctions over the Nord Stream 2 gas pipeline project and is determined to win a portion of Europe's gas market, Russian Deputy Foreign Minister Alexander Pankin said.
"It's clear that this is being done not only to the benefit of several European countries or Ukrainian transit, but a more serious game is underway for the gas market. No matter how much they criticize gas or talk about hydrogen, Americans are pragmatists and understand that gas will remain on the world market for a long time. It's convenient for them to use their gas, resources, and channels for selling liquefied natural gas, mobility, price setting, etc. And they understand that it's necessary to gain a foothold on this market when prices are low and then somewhat raise prices in their own favor when they already hold a portion of the market," Pankin told reporters on the sidelines of the 13th Eurasian Economic Forum in Verona.
Russia and its European partners are not throwing in the towel and are trying to come up with some mechanisms for counteracting this, he said.
"Russia can do this and is doing it. And both countries and companies are doing it. Here we are dealing with wave-like blows to Russian and European business, but American laws with their secondary, extraterritorial effect of course scare those who are involved in transnational business and have, or even do not necessarily have, interests in trade or in investment in the U.S., because they process payments in dollars, and that's it. [...] However, [many countries] fear that payments may not be processed on these deals, and the deals may break down. I can't predict anything. Many people are working on it," Pankin said when asked whether Russia can somehow influence the situation or whether the issue depends on Europe alone.
Pankin also confirmed Russia's policy aimed at strengthening cooperation with China in different fields, after being reminded by reporters that when the U.S. and European countries imposed sanctions on Russia, Moscow turned to Beijing.
When asked whether Russia may hire Chinese contractors in this situation, Pankin said, "Everything depends on the Chinese contractors. You understand that it's one thing when there's a company that is tailored to work exclusively on this contract and after this it will cease to exist or will operate on the domestic market, or when we deal with a company that has another 100 contracts, including even not with Americans, but maybe with other partners where it makes payments or, the other way round, receives payments in dollars."
"The Chinese use dollars in their payments. Of course, they seek to boost the role of the yuan in relations, but not in all cases. Moreover, it doesn't always work on the oil and gas market. Therefore, yes, they have their own markets, and the banks have markets to insure deals of this sort," he said.
When commenting on whether such possible cooperation may entail risks for Beijing, Pankin said, "Of course, there are risks for everyone. As regards the Americans, it's dollar dominance. Another bank showed the right figures today that $3.5 trillion simply poured out, as if from a bucket in a bath house, as if they aren't backed up economically by anything. But they aren't backed up by anything. The printing machine is working. Period."
"The United States is amassing debt. No one will bring a promissory note today. Probably, no one will risk or want to do this, because, certainly, the dollar has very tightly tied many spheres of economic relations, including investment, payments, trade. This view is realistic rather than pessimistic. But another realistic opinion is that the United States is too aggressive and makes a large number of countries, including the Europeans, [take certain steps] effectively to their own detriment. Allied relations often don't outweigh the damage that the population of these countries is suffering today because of Covid-19, needing not cash printed in large quantities, but actual support for business, its development, and for keeping this business afloat," he said.