In the usual meeting with journalists on the sidelines of the World Economic Forum, the financier and philanthropist George Soros announced that he wrote a letter to the Italian premier, Mario Draghi, in which he stresses that Europe, which owns the gas pipelines, has actually a position of force majeure with respect to Russia. “I think Putin was smart to blackmail Europe with the gas cut, but Europe actually has a stronger position than Moscow,” Soros added.
«Putin – reads the letter – is obviously blackmailing Europe by threatening to withhold gas, which he has set aside rather than supplying it to Europe. So he created a shortage that led to a rise in prices, but Putin’s negotiating stance is not as strong as it seems, as Putin has it to believe. It is estimated that Russian deposits will be at their peak by July and Europe is the only outlet market for Russian gas. Russia – continues Soros – risks having to close 12,000 extraction points in Siberia ». “Europe is therefore in an advantageous position and should impose a heavy tax on gas imports in such a way that the final price that the consumer pays does not go down and with that money that the EU earns it can help the poor and investing in clean energy ”, the letter continues. In his meeting with the press in Davos, Soros also stressed that Draghi is the leader “able to advance” the European positions, the man who has “the initiative, the imagination, the high reputation” necessary to the standoff with Moscow and to advance a federalist project in Europe. “He is not the only leader, and at the moment European politicians are in a creative phase.” What is needed “is a step towards a partially federated Europe, it would be a huge advantage,” added Soros.
The full text of the letter
«Putin is obviously blackmailing Europe by threatening to close the gas transfer. This is what he did last season. He put the gas in storage rather than supplying it to Europe. This created a shortage, raised prices and guaranteed him a lot of money. But his bargaining position is not as strong as he claims. It is estimated that Russian storage capacity will be exhausted by July. Europe is his only market. If he doesn’t supply Europe, he has to close the wells in Siberia where the gas comes from. About 12,000 wells are involved. It takes time to shut them down and once they are closed they are difficult to reopen due to the outdated equipment.
Europe should undertake urgent preparations before going to negotiate. A sudden arrest would be politically very difficult to bear. However, these preparations are necessary to make Europe independent of Russian gas. There is already the danger that Putin will turn off the taps while they are already heavily hit. All these pressures work in the same direction. Preparations must be sufficiently advanced before the cold season. Europe would therefore have to impose a hefty tax on gas imports so that the price to the consumer does not fall, but the EU would earn a large amount of money that could be used to subsidize those in need and invest in green energy. Russia will never recoup the losses it has suffered ».