FT: Pipeline politics flow both ways

For President Vladimir Putin, Russia’s oil and gas sectors are paramount politically as well as economically, as guarantors of the security and stability of the country.

While much has been said about Europe’s dependence on Russian energy resources, Russia depends on the revenues it receives from the continent.

“We need Russian gas; they need the euros,” says Thierry Bros, a Paris-based gas analyst for Société Générale. “It has always been about interdependence.”

Oil and gas make up more than 50 per cent of the Russian government’s total revenue, with most of it coming from Europe, making it unrealistic that Russia will totally cut off gas supplies to the continent.
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