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Gazprom Offers to Bail out Cyprus in Exchange for Exploration Rights

By Charles Kennedy | Wed, 20 March 2013 23:09 | 3

Cyprus is in a bit of a piggle, but the European Union has offered a solution; they will bail out the Cypriot banks and in return take a percentage of all deposits held in those banks. Obviously this is a rather extreme solution, and one that has been met with rage by the millions of people who keep their savings in Cypriot accounts.

Russia’s business and political elite rely heavily on Cypriot offshore accounts to avoid taxes and political risks at home, and according to Moodys, they stand to lose around $3.1 billion due to the proposed offer.

Gazprom has apparently offered a deal to save the Cypriot economy, and the Russian wealth held there, by suggesting that Cyprus sell it the exploration rights to the promising offshore natural gas deposits in the Mediterranean Sea.

This offer just highlights Gazprom’s willingness to seize any opportunity and exploit any weakness in an attempt to increase its position and power within Europe.

Securing the rights to Cyprus’s undeveloped gas reserves would give Gazprom a strong supply of gas and continued power for generations to come, and also prevent any potential competitors from extracting the reserves to threaten Gazprom’s monopoly in Europe.

Hardly surprisingly the Cypriot government flatly rejected the EU bailout plan, but no announcement has been made in regards to the Gazprom offer.

By. Charles Kennedy of Oilprice.com

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  • Steve C on March 21 2013 said:
    Brilliant strategy for Cyprus?
    Replace EU's hands around their throat with Russian hands.
    Great idea--then Russians can control the energy and the banks in Cyprus.
    Pigs w/o selfcontrol sometimes over eat.
  • Rick on March 21 2013 said:
    The EU, US and UK all appear to promote and support the Nabucco gas pipeline project as it will escape the monopoly of the Russian supply.

    On the other hand, Germany who receives gas from Russia on the Nord Stream pipe, appears to favour the Russian South Stream pipe plan. It looks to me as though Cyprus was also in favour of the South Stream.

    There appears to be a conflict within the EU and no consensus in sight. Can you shed any light on what is going on Charles?
  • James Green on March 21 2013 said:
    The Gazprom deal would be a brilliant strategy for Cyprus and it's people.

    Showing the ECU and the Washington based IMF that they are no longer willing to have a noose around their necks nor tremble at the hands of these hangmen.

    Independence from this disasterous European scheme may well set the wheels in motions for an awakening of other members to exit stage left...

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