Wednesday, June 08, 2022

Ukraine in Charts II

On the theme of Ukrainian resources, PNG has a chart that is explanatory of the current situation in Europe.  Ukraine is geographically a European country (second largest after eastern Russia), and increasingly from a political perspective too.  President Zelensky has asked to join the EU since his country was attacked by the Russian Federation.  This increasing western orientation is one of the complaints Putin has about his slavic neighbor that used to be part of the Soviet Union.  Ukraine has large gas deposits that could eventually replace the EU's dependence on Russian oil and gas with European technological assistance. Crimea is dependent on water supplies controlled by Ukraine.



Unfortunately, the EU has been unable to see its way clear to embargoing Russian oil and gas, primarily because of Hungary's objections to a complete ban.  The EU executive was forced to exempt Hungary's pipeline to Russia on which it relies for oil supply from new sanctions on Russian oil.  It has yet to act on a natural gas embargo that is a much more difficult supply to curtail since Russia supplies 41% of Europe's natural gas resource.  A wholesale embargo would be much more effective weapon than a handful of mobile missile launchers the west is currently willing to supply.