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    Reuters: Arctic gas project backs political strategy as Russia turns east

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Summary

A $27 billion LNG scheme is assuming major political as well as economic significance.

by: Sruthi

Posted in:

Press Notes

Reuters: Arctic gas project backs political strategy as Russia turns east

On the Arctic tundra far to the north of Moscow, Russia is charting a course away from the West and towards Asia. In Yamal - which in the local Nenets language means "the end of the earth" - a $27 billion liquefied natural gas (LNG) scheme is assuming major political as well as economic significance.

The project fits well with a more aggressive eastward push by Moscow since the United States and European Union imposed sanctions over its annexation of Crimea from Ukraine last month.

 Instead of sending gas by pipeline to long-standing EU customers, Russia aims to ship LNG from the remote Yamal peninsula by sea largely to Asian buyers such as China, which has avoided confronting Moscow since Russian troops took control of Crimea.

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