Stream of consciousness growing from Power of Siberia

On May 21, Vladimir Putin announced the signing of a contract with China on so-called "western" route. Details weren’t disclosed, but it was announced that the total contract price would be $400 billion, which, as experts immediately calculated, corresponded to $350 per 1 000 cubic meters. At the same time, the necessary investments in fields development and construction of the Power of Siberia pipeline were officially estimated at 60 billion initially, and then at $100 billion.

Russian propaganda solemnly declared the contract "our response to the West": they said, if Europe introduced sanctions against us, it should fear: all of the gas will go to China.

Experts were more skeptical. Even at the price of $350 the contract was on the verge of profitability and could give the budget not so much, because in order to minimize losses Vladimir Putin canceled even MET and property tax for the project. The volume of the gas supplies - 38 billion cubic meters - looked laughable for China with a population of 1 400 million people. We supply the same volume to the Ukraine with 40 million of population.

However, many, including myself, were amazed that the contract was signed at all. The fact is that the Chinese have little interest in the project: they don’t experience lack of gas, and in addition, Russian lovers to bury money and pipes in the ground stated before the contract signing that they were ready to build a gas pipeline, even without a contract.