Today, Russia inked a second blockbuster deal with China that will starve Europe for natural gas in just a few short years. It's now increasingly clear that 2018 will mark the beginning of the end for any hopes Europe had of returning to robust economic growth.
It was by far the biggest news of the day. While it did make headlines, you might have missed it because not much was made of the affair beyond the announcement. The story came and went as if Russia has oodles of natural gas (NG) to send to China.
It doesn't. And the supplies it has now contracted to send to China will be pulled from supplies that currently go to Europe.
For the people who understand global energy markets — that energy is the one non-negotiable substance required for economic stability and growth — this announcement was a huge deal.
Here's what was announced:
Putin snubs Europe with Siberian gas deal that bolsters China ties
Nov 19, 2014
Moscow and Beijing signed an agreement to supply gas from western Siberia to China, in a deal that could eventually see more of Russia’s gas flowing to its vast eastern neighbour than to its traditional European markets.
Assuming crucial details such as price are agreed, the deal would mark another big step in President Vladimir Putin’s efforts to build a closer energy relationship with China to offset increasing isolation from the west.
Chafing under US and EU sanctions imposed over its support for Russian separatists in Ukraine, Russia has long sought to reduce its dependence on Europe as a customer for its gas and diversify its export markets, as well as boost its strategic ties with China. This latest deal goes some way to meeting those goals.
Mr Putin and his Chinese counterpart Xi Jinping signed it on the sidelines of the Apec summit in Beijing just as President Barack Obama arrived in the capital for the meeting.
by arthur-robey-2 
