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Russia Energy

Non-Dollar Trading Is Killing the Petrodollar -- And the Foundation of U.S.-Saudi Policy in the Middle East

Alastair Crooke | Posted 02.01.2015 | World
Alastair Crooke

This new oil price drop simply is crushing producers' currencies in foreign exchange markets. The combination of the petrodollar losing its ability to act as a store of value, combined now with exchange rate blues, may be the straw that breaks the producer "camel's back" in respect to OPEC and dollar denomination. Such a moment would seem ripe for Russia and Iran to begin a gradual challenge to Saudi's leadership of the OPEC cartel and to the dollar-denominated energy system, if enough OPEC members and other producers are prepared to rebel. Iran has been lobbying hard in this direction.

The Right Response to Putin: A European Energy Union

Joschka Fischer | Posted 06.28.2014 | World
Joschka Fischer

Dulling Putin's knife and ending the Ukraine crisis peacefully depends largely on the EU. Sanctions will not impress Putin (he and his cronies are isolating Russia economically and financially more effectively than most sanctions could); peaceful yet tangible political steps within Europe will. Polish Prime Minister Donald Tusk has made the right suggestion here: prompt establishment of a European energy union, starting with the market for natural gas and including joint external representation and a common pricing policy. This step, combined with further differentiation among supplier countries and progress toward implementing renewable-energy technologies, would invert the balance of power between the EU (Russia's most important customer for oil and natural gas) and the Kremlin.