AMAC Exclusive – By Ben Solis
On Tuesday, after much hesitation, the Biden administration finally banned imports of Russian oil, natural gas, and coal. But even though this latest development is a positive first step, the White House still hasn’t fully exercised all its options when it comes to hitting Putin where it actually hurts – Russia’s energy infrastructure.
The last decade of the Cold War provides a useful historical parallel for how the West might go beyond bans on imports of Russian energy to break the backbone of the Russian economy and bring Putin to heel. Then, as is the case now, many European countries relied on energy exports from Russia. However, U.S. President Ronald Reagan boldly took on the Kremlin by targeting energy production in the U.S.S.R. while also ramping up U.S. output.
President Reagan’s policies focused on targeting the new trans-Siberian pipeline that was to deliver natural gas from the Urengoi-6 gas fields in Siberia across Kazakhstan, Russia, and Eastern Europe, into the hard currency markets of the West. Reagan’s Special Task Force correctly identified the strategic value of the project, which one Soviet magazine described as “the Soviet Union’s landmark in world economic events.”
The goal of President Reagan’s policy was to cut the Soviet Union off from hard currency and deny it new technology – both key factors that would eventually lead to the fall of the Soviet Union itself.
The 253 compresser stations connected by 3,600 miles of pipeline made of 4 to 5 million tons of steel pipe was a trap set by the Soviet Union for Western Europe, making it dangerously reliant on Soviet supplies. If completed, the Soviets would suddenly have gained a stranglehold over the Western economy. Gas de France analysts estimated in 1983 that by 1990, Russian deliveries would rise to 40 percent of Western Europe’s total natural gas requirement.
Soviet foreign exchange earnings from the natural gas sales were projected to range from $10 to $15 billion annually. These revenues, within a few short years, could give the Soviets substantial financial leeway to completely reorganize the $80 billion worth of debt owed by East bloc countries to Western banks, thereby restoring the Soviet Union’s economy.
Leonid Brezhnev, in talks with top Soviet-Polish Communist Wojciech Jaruzelski, stated the pipeline would be “the largest project in recorded history,” and that the Communist world would be able to reshape Europe and the world.
The U.S. soon heavily targeted the pipeline with sanctions. In addition, intelligence acquired from the French was used by an American agent to sabotage the project, in what became one of the more incredible untold stories of the Cold War.
By stopping the pipeline, the Reagan administration destroyed Soviet dreams of acquiring supremacy on the European energy market and restoration of the wrecked Soviet economy, opening a path to freedom for nations behind the Iron Curtain.
Today, the West has suddenly found that, unlike in the last century, it has fallen into Putin’s energy trap. Fearful and apprehensive, Europeans deliberately exempted Russia’s energy exports from sanctions. No one has been more complicit in this sellout than the Germans, who set out to build a direct undersea natural gas link with Russia through Nord Stream 2.
According to the Organization for Economic Cooperation and Development, in November 2019 exports to Europe constituted more than 40 percent of the total Russian crude and refined petroleum trade. China, with its 19.8 percent share, cannot replace it. Crude and refined petroleum trade make up 43 percent of the Russian economy.
However, there may still be a way out for Europe and the United States – and this time, it won’t involve a clandestine operation. Russia is bound to economically inefficient long-term gas and oil contracts with China. Those contracts will cause Russia to incur enormous losses, not only because the Chinese negotiated a set price on the day of signing, but also because they did not agree to buy resources transferred through Mongolia.
Now Russian firms must build 12 modern compressor stations and connect existent pipelines through Siberia and the Arctic into China.
The only serious source of cash for these investments and the modernization of old Soviet infrastructure is Europe, giving the West a glimmer of hope for leverage over Putin. Moreover, without trade with Europe, Russia would have difficulty extracting gas and oil from the Arctic.
The only way for the West to leverage these gains, however, is to cut their reliance on Russian energy – a task that will not be easy or painless. But the return of the United States energy policy of the Trump administration would lower the U.S. crude oil price, deprive Putin of hard currency, de-invest his energy sector infrastructure, and replace Russian gas and oil supplies in Europe with American exports.
Like during the Reagan era, when the Urengoi-6 pipeline changed the course of the Cold War, today projects like the Keystone Pipeline could radically redirect the current war in Ukraine and deter future Russian aggression. Further, a combined Western effort to hamper Putin’s ability to replace his aging energy infrastructure would be an even more effective pressure campaign than simply banning Russian imports. As it stands, the West will likely begin importing Russian oil again as soon as the media frenzy over Ukraine dies down.
Every day that the Biden administration fails to unleash the potent economic weapon of the American energy sector, which will in turn free the West to target the Russian energy economy, is another day that Putin maintains a stranglehold over Europe and undercuts the West’s response to Russia’s invasion of Ukraine. For the West to prevail against the resurgent threat of an expansionist Russia, the U.S. and its allies must be determined to hit Russia where it hurts – not just with sanctions but with a lasting commitment to end their reliance on Russian energy.
Ben Solis is the pen name of an international affairs journalist, historian, theologian, and researcher.
Trump was supposedly in bed with Russia 😉 but Hillary sold them our Uranium, so that’s ok. Dems are the ones who keep dealing with an appeasing Russia.
We take Russias down & Boost Our energy
Nice thought, but this is not the Reagan nor the Trump administration. Also, Russia is no longer the USSR nor communist.
This “ADMINISTRATION” will do NOTHING to help Ukraine, or for THAT MATTER, the UNITED STATES…
By Comrade President Jackass Josef “Lyin” Biden closing down America’s Keystone Pipeline and disallowing Oil and Gasoline production and then buying oil from Putin, HE IS FINANCING RUSSIA’S INVASION OF THE UKRAINE!!! . . . STUPID IS, STUPID DOES!!!
Re-Open the XL Pipeline. this is a very simple solution and that empty nut-shell in Our White House is too cowardly to do so.
Although Trump had foot in mouth disease I have a feeling this wouldn’t be happening if he was the president. Chin up and pray!
Here we are reading another dumb a– article about something that wont happen in the next 3 years and even if it did it wouldnt happen fast enough to change things in Ukraine or hurt Russia at this point
Really? Joe Biden and the Democrat Party have been committed to reducing, or even ending the use of fossil fuels in America. Stopping the XL pipeline, and increasing regulations of the Petroleum industry has already spiked the prices of these products.
There is no viable reason for Biden and his party to make energy prices drop. His liberal voting base applauds his energy actions, and the Taxsucker voters don’t care about energy prices.
The wage earners who actually need to use their own money to buy fossil fuel products, pay the taxes that fund the taxsucker programs. Results? There will be no advantage to alienate the liberals by making gasoline and natural gas less expensive.
At what point will the political “experts” begin to understand that the Democrats really do mean to replace fossil fuels with alternate energy sources? ANY Joe Biden speech about reducing the cost of energy is simply hot air, meant to gaslight the moderates and independent voters.
It’s almost as though the political commentators were biased toward the Democrat agenda.
Everything that you stated is correct…..however…..with this weak leader and socialist party in power I don’t see it happening !! They would rather give up America before
implementing any of Trump’s policies !!! To admit that their policies are crippling to the nation and Trump’s policies elevated us would be….to them…..the most carnal of sins !!! But that is what you get with the godless in power !!!!!
The Keystone Pipeline not only would free us from importing oil from overseas it would make those released imports of ours available to Europe. In essence, it increases world supply thereby reducing world market prices and European reliance on Russian oil. That pipeline, which Biden is preventing, would be a huge benefit both now and in the future. Add if Biden would stop preventing new oil and gas leasing plus end his restrictions on fracking this entire crisis could end very quickly. This administration is not proving to be an ally of the American people and not a very good ally of Europe either. Biden and his “green energy” radical base are the sole cause of today’s energy problem both here and in Europe.
BIDEN IS OUT TO DESTROY THE UNITED STATES OF AMERICA. ITS NOT ONLY WHAT CAN BE DONE WITH OR WITHOUT OTHER COUNTRIES BUT WHAT HE KN OWS CAN BE DONE RIGHT HERE AT HOME. PRESIDENT TRUMP HAD US ON THE RIGHT ROAD TO RECOVERY, AND BIDEN KNOWINGLY SABOTAGED IT. ALL OTHER NEWS IN OUR COUNTRY HAS BEEN CONVENIENTLY STOPPED. WHILE OUR FOCUS IS ON ONE EVENT, HUNDREDS OF OTHERS ARE SILENCED. WHAT HAVE WE ALLOWED TO HAPPEN TO OUR COUNTRY?
Ahhh, and i would like to be 25 again. Thats how much chance there is of the treason party doing any of this. Why would they? Inflation due to energy scarcity is the means to the end goal of a return to feudalism with them as landed aristocracy. They will own and we will grovel.
Biden and his stupid administration never many any sense. They are cowards, timid, and fools. We have fools running out country. And they were voted in?
Chi-coms will be more than happy to buy all of Putin’s oil, gas and then some. Europe is not onboard, they are heavily dependent on Russia. What demented Biden did is destroyed what’s left if the middle class. President Trump made us energy independent for the first time in 72 years, and Biden destroyed it on his first illegitimate day in office. Gas back then was $2.35/gal, and we were energy exporter to Europe. That’s the way to undermine Putin, produce energy here. This is how our great President Ronald Reagan destroyed Soviet empire with furious opposition from Democrats, who were actually in bed with the Soviets. Ted Kennedy sent his personal envoy to Moscow to undermine President Reagan behind the scenes. Murderous Soviets were good partners for Democrats then, Putin now is as bad as they come.
I read the article and I would agree with most of what was said. Yes I am a republican and yes I believe Biden is a less than a strong leader. I believe most of the time he simply reads from a tele-prompter or rehearsed script. I find it difficult to understand who is actually leading this country.
His family, especially his wife, should be ashamed of what they have done. They should have had the courage to say what everyone knows. He was past his prime and should not seek the office of the President. Obviously they were to power hungry to be honest with him.
Additionally, It is a sad nation that has the freedom to vote as they want but they elect to vote not on issues, success, or qualifications. Joe Biden’s record is not one of great accomplishments.
What about the “effective weapons” against the American people; Bringing illegal aliens and putting them up in hotels, high heating oil prices along with gas prices. This dummy Biden is following orders, he has no mind, He closed the Keystone pipe and is buying foreign oil when we have what we need to be independent. This regime is the enemy of the American people and must be stopped. I paid $3.34 per gallon for home heating oil two weeks ago, not it,s $4.80 and climbing.
people need to lower their expectations about biden —– they are still way to high.
So, obviously after reading the comments, it seems the majority are frustrated, angry and upset…..and rightfully so. Can we agree that the “Puppet in Charge” is not calling the shots. So it’s pointless to ask why Biden is doing this. Biden is just a shill. The Leftists (Socialists & Marxists) are doing everything to bring this country to its knees and as we watch, before our eyes, with grand success. All the hand-wringing and whining will not change this fact. It will take a groundswell of angry, fed-up, “I’m not gonna take it anymore” individuals who come together to vote, legislate and vociferously declare an end to the stupidity! The question is, are you willing to do something about this. We need to see a Red Wave in November or better yet a Tsunami!
NATO Intervention In Ukraine Could Spark Nuclear War. Here’s How It Could Happen
In the simulation we mapped out, not only does NATO get sucked in unintentionally, but Russia releases nuclear weapons in its desperation.
thefederalist.com/2022/03/04/nato-involvement-in-ukraine-could-spark-nuclear-genocide-heres-how-it-could-happen/
It’s my belief that biden’s bought and paid for, owned by too many other outside “interests”. He holds allegiance to too many other money grubbers. Biden’s an abysmal failure as POTUS. He most certainly is not any leader I’d follow.
MAGA2024! TRUMP2024!
I wondered if someone would come along and replace Jimmy Carter as the fool he was–sure enough, along comes Obozo. I wondered if someone would come along and replace the fool he was–sure enough, along comes Biden. There is no chance someone will replace this fool!!
bury the democrats under tons of impeachment bills.
I do not think unleashing economic weapons is in the sript
Comparing Reagan and Trump policies to Biden’s policies isn’t even in the same universe. The Russians only fear strong business acumen and policies, military aside. Biden has proven his crowd can’t get off the dime when it comes to ability or experience. THE PROOF IS IN THE PUDDING.
Not many know this. The bible says in many verses that satan rules the earth. God allows this because most people don’t want God’s laws. Another thing most people aren’t aware of is verses referring to Russia in the last days. Search Gog and Magog. Gog is the leader, perhaps not the current one. But it is a big participant in Armageddon. These things were talked about two to four thousand years ago by different prophets. God loves everyone, but will only receive those who come on His terms. No one comes to the Father except by Me. This said by Christ Jesus.
Why does Joe and the democrats along with the Repubadems want war with Russia? I guess we all want to fight for the new world order and not for freedom and Joe’s 10%. I guess the BIO labs in Ukraine are just theirs and we had nothing to do with them like China. Wake up America. How can we forget history of Russia and China?
It would be nice to be able to read the Wired article mentioned, for free…
There is more to all this then we know. The media is not telling the whole story. What is our government hiding?. Why was Biden pushing for the invasion before it happened?. Biden kept talking about it and the Ukraine government kept saying that they don’t have anything to worry about.
I don’t trust Biden he got a lot to lose if we find out what really is going on in Ukraine.
Are we kidding ourselves? Joe Biden is playing with Mr. Putin and he realize Biden weakness.
How much is Joe Bidens 10%. He is going to retire soon and Russia must pay him. Most corrupt president ever!!!!!!!
It’s my opinion that Biden hasn’t a clue what’s going on. Biden is just a placeholder for whoever is running the government. Whoever is running things right now has no love for The United States of America.
Well this is all happening, because we replaced General Patton in the White house with Gomer Pyle. The Democrats and Rhinos are traders to our country. Impeach them all.
Biden Mush-Head, enough said.
Or, nato and the us could honor it’s promises made to Putin. It’s the only reason Putin is doing this. Just like we were fearful of the soviets being in Cuba, Putin doesn’t want a neighboring nato country. He was promised it wouldn’t happen and those need to be honored
I honestly believe Biden and Putin have a deal. What we see is just the tip of the iceberg but if we could see the part thats under the water it would probably blow our minds.
COMMON SENSE: If what President Reagan did worked, then why wouldn’t Jackass Josef “Lyin” Biden do the same?
2 reasons: 1. Because it was done successfully by a Republican President and 2. Biden is just too stupid and has NO Common Sense and can’t recognize fact over fiction, duh!
THE Only weapon that the vegetable in the white house needs is DONALD TRUMPM
Build more windmills and put up more solar panels.
In his quest to wreck an economy, Biden will succeed. Unfortunately the economy he will wreck is the US economy.
Brandon is not stupid, he is evil. He cares not what might be good for the USA or the world. He only cares about what is good for him and the other elites. The fact is that they can all survive petty things like ridiculous inflation and out-of-site gas prices, as they are all billionaires. They can’t relate one bit to the problems they have caused in the lives of everyday Americans, and they don’t care. That includes the hundreds of thousands of people that lost their lives because theraputics that were known to be effective against Covid were blacklisted and made unavailable to everyday Americans in favor of $3000 a pop remdesivir and ventilators that ended up killing people. Pretty much everything they do does not benefit us.
What is the MISSION of the United States (US) with respect to Ukraine which is currently under attack by Putin’s military? Is it to meet any minimum treaty obligations with NATO or the agreement directly with Ukraine? Is it to provide political platitudes and promises of protection for the population of Ukraine?
Is our mission to provide our proportional participation in providing humanitarian aid (first-aid kits, KN95 masks, etc.) to the people fleeing Putin’s troops?
Is our mission to provide defensive weapons to the Ukrainians so they can slow the advancement of the devastating weapons of the Russian military?
Is our mission to provide offensive weapons to the Ukrainians so they can effectively attack tanks, artillery, and jet fighters of Putin’s military, thus protecting their beautiful and historic cities and brave citizens? Poland offered up their MIG-29 jet fighters if we would backfill those with US jet fighters. Why did US POTUS refuse both these actions?
Is our mission to protect the abundant natural resources of Ukraine from confiscation and exploitation by Russia? Is it to protect the technology being developed by Ukraine’s biolabs funded by the US and ensure the Russians don’t capture and use them for nefarious purposes?
Is our mission to help Ukrainians prevent genocide of their population, considering the Russian military has already killed tens of thousands of Ukrainian men, women and children, and have destroyed numerous children’s schools and over a dozen hospitals, including a maternity hospital with patients and staff inside?
Many genocidal acts have occurred against ethnic groups in eastern Europe in the past: Jews by the Nazis, Roma/Gypsies by the Nazis (descendants of those from the India/Pakistan region), Bosnian Muslims by militias from Serbia, and more. During the 14th-17th centuries, the Ottomans invaded, raided, and decimated eastern Europe, adding first Turkey, then what is now Greece, Bulgaria, Serbia, Romania, Croatia, and Hungary to their empire before being pushed back in the 18th century. From 1930 up to 1952, during the developing days of the Soviet Union, there was forced transfer of various ethnic groups ordered by Soviet leader Joseph Stalin. Some nationalities were classified as “enemies of workers” and were sent as forced laborers to remote areas, such as the Siberian wilderness. Some of those relocated were farmers and peasants in Crimea (southern Ukraine), whose wealth and property were confiscated. There were organized migrations in opposite directions to fill “ethnically cleansed” territories. There were forced expulsions of Germans, Austrians and other ethnic groups that involved deportation, massacres, and internment in labor camps. Is our current mission to ensure such genocide does not occur again by using firm words and wagging our national finger at Putin?
Please, President Biden, what is our mission in Ukraine?
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Everyone needs to STOP, take a deep breath and read George Washingtons farewell address. Pay particular attention to what he said about foriegn entanglements.
It is time for the USA to quit trying to be big brother to the whole world!
Joe Biden is a puppet and exactly what he is doing. I hate it when conservatives say,” poor Joe, doesn’t he know what he is doing”. The whole party knows they are devoted to Communism through Worship of Satan and Abortion for blood sacrifices.
Not letting American companies develop oil, natural gas and other resources hurts the US economy and American families, but that is just what the Marxist Democrats want.
Today almost everyone in DC, 100% of DNC pols and about 20% of RNC pols, 100% of bureaucrats are more anti-Americans. The exact opposite of Pres. Reagan. So we will never ever see DC permit oil production here, unless we vote in a whole bunch of new faces, begining this November. In other words, Dump Bipartisanship with the left, and say NUTS! to the lefty media.
Trump was supposedly in bed with Russia 😉 but Hillary sold them our Uranium, so that’s ok. Dems are the ones who keep dealing with an appeasing Russia.
We take Russias down & Boost Our energy