Israeli gas, Iranian Missles, and the Russian Price Tag
In the on-going debate over an Israeli attack on Iran, attention has largely focused over the last few weeks on Israel and America, for good reason. But what about Russia?
A very senior person in the Israeli gas industry tells me: "The Russians have been poking around here for a while. Everyone knows about the Russian interest in controlling the European energy market. Do they want to buy from us, or delay our efforts? I don't know. But they are here."
In early July, the Israeli energy and infrastructure news website "Thastiot" claimed that during Vladimir Putin's much publicized visit to Israel, Putin and Israeli Prime Minister Netanyahu agreed to form a junior company to Gazprom – the Russian oil and gas giant—which would help develop Israel's biggest gas field, the recently discovered reserves in the eastern Mediterranean, the so-called "Levyatan" (Leviathan) reserves.
"Eventually Israeli gas will be exported to the far east," Ohad Marani, CEO of IDLC energy which is already drilling the Myra, said to me. For him, the question is purely economic. "In the Far East we will see three times what we see in Europe. While we won't be able to keep the whole margin, it's surely better than any European option, which would involve an expensive pipe."
The senior industry veteran with whom I spoke is not quite sure. Yes, the Far East has unlimited demand ("The Japanese are lessening their reliance on nuclear, and the Chinese can never have enough") but the European market remains relevant and we have this massive amount of gas already discovered or to be discovered. The US geological survey (USGC) estimates that gas reserves in the eastern Mediterranean amount to 345 trillion cubic feet while Russian gas reserves in Siberia are estimated at 643 tcf.
Big business! With lots of Russians having come and gone to Israel on this question, one wonders about the relationship between the gas deal and Russian involvement on the Iran question.
The same week Putin visited Netanyahu in Jerusalem, Eurasia monitor published that:
"the government agency that oversees Russia's arms exports and imports… confirmed that Iran is suing Russia for damages to the tune of some $4 billion in the Court of Arbitration in Geneva for cancelling in 2010 a contract to sell five divisions of the S-300 long-range antiaircraft missile system worth an estimated $800 million to $1 billion."
By some estimates the worth of the Levayatan gas-field might be 15 billion dollars say Gilad Alper, the gas industry analyst at the Excellence Investment house. It trades today at a price of 3 billion dollars.
Another way to look at it: Levayatan contains 473 billion cubic meters of gas. Gazprom exported 150 billion cubic meters of Gas to Europe in 2011, at a price of 384$ per thousand cubic meters – revenue of 57.6 billion dollar—this year Gazprom raised the price to 415$, an 8% increase that will generate another 4.6 billion dollar of revenue to Gazprom. What would be the cost of keeping Israeli competition neutralized? Would it be worth the cancellation of an 800 million dollar deal? Could Russian action over the missile sale and Israeli gas reserves indicate that they have come to terms with the Israeli point of view?
Prominent Americans like David Petraeus have been saying non-stop that Israel does not have the capability to destroy Iranian Nuclear capacities, and surely not Iran's ambition to go nuclear. But if Israel can indeed delay the project while in the meantime having taken out of the picture one of Iran's most important allies, then things might look very different from the office of Prime Minister Netanyahu. Everyone knows that Russia intends to play the 'spoiler' in the International arena. But this spoiler frequently has a price tag.
Reader comments on this item
|Doubts about Putin's Russia [51 words]||Paul Marks||Aug 21, 2012 01:53|
|Interesting times. [46 words]||Alisa||Aug 19, 2012 06:11|
|What about the Europeans? [45 words]||Yoram sella||Aug 17, 2012 10:43|
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by Burak Bekdil
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It was the usual "We-Muslims-can-kill each other-but-Jews-cannot" hysteria.
If Turkish crowds were protesting against Israel in a political dispute, why Koranic slogans? Why were they protesting in Arabic rather than their native language? Do Turks chant German slogans to protest nuclear energy?
by Burak Bekdil
So in the EU-candidate Turkey, a pianist should be punished for his re-tweets, but a pop-singer should be congratulated for her first-class racist hate-speech. This is contagious.
No reporter present at Mr. Ihsanoglu's campaign launch speech thought about asking him if his commitment to the "Palestinian cause" included any affirmation of the Hamas Charter, in particular a section that says, "…The stones and trees will say, 'O Muslims, there is a Jew behind me, come and kill him.'"
Turkey is also the country where a few years earlier, a group of school teachers (yes, school teachers!) gathered in a demonstration to commemorate Hitler.
by Debalina Ghoshal
Despite Chapter VII of the UN Charter and UNSC Resolutions, it seems that North Korea will continue developing its missiles -- and eventually weaponize them with nuclear warheads.
"North Korea's ballistic and nuclear threat is very much a near-term threat. ... Steady progression in their program is not harmless." — Victor Cha, Centre for Strategic and International Studies.
On March 26, 2014, North Korea reportedly test-fired medium-range ballistic Rodong missiles -- capable of reaching Japan and U.S. military bases in the Asia-Pacific region.
Since February, South Korean officials claim that North Korea has confirmed at least 90 test-firings, among which ten were ballistic missiles.
by Khaled Abu Toameh
It is important to note that these cease-fire demands are not part of Hamas's or Islamic Jihad's overall strategy, namely to have Israel wiped off the face of the earth.
Many foreign journalists who came to cover the war in the Gaza trip were under the false impression that it was all about improving living conditions for the Palestinians by opening border crossings and building an airport and seaport. These journalists really believed that once the demands of Hamas and the Palestinian Islamic Jihad are accepted, this would pave the way for peace between the Israelis and the Palestinians.
To understand the true intention of Hamas and its allies, it is sufficient to follow the statements made by their leaders after the cease-fire announcement this week. To his credit, Ismail Haniyeh, Hamas's leader, has never concealed Hamas's desire to destroy Israel.
Hamas and its allies see the war in the Gaza Strip as part of there strategy to destroy Israel. What Hamas and its allies are actually saying is, "Give us open borders and an airport and seaport so we can use them to prepare for the next war against Israel."
by Burak Bekdil
A front-page headline was particularly revealing: They (Israel) bombed a mosque in Gaza! Including the exclamation mark!
A quick internet search, if you typed "mosque bombing Shiite-Sunni," would give you 782,000 results on July 16.
Why did we not hear one single Turkish voice protest the death of 300,000 Muslims in Darfur?
Hamas's Charter is must-read fun.