Coming soon to a Black Sea near you
Hardly had Romania begun celebrating its victory this week in the Battle of Snake of Island than the scandal broke: a concession to extract any gas found under the disputed part of the Black Sea had already been handed over to a Canadian company, Sterling.
Cue the usual moral outrage from just about everybody, about selling the country short to foreigners, noi nu vindem tara and so on. Truth is, it matters not one jot who extracts the gas: it will be sold to the Romanian consumer at much the same price they buy gas (mostly from Russia) today.
Firstly, the importance of Romania’s victory at the Hague should not be overlooked, nor should the work of its young legal team. It righted a historical wrong and ended all conflict with Ukraine (indeed, Ukraine’s gracious acceptance of defeat should also be noted). But the hyperbole that followed was too much. While there is – allegedly – billions of dollars worth of gas in the Black Sea, how does that directly effect the average Romanian gas consumer? Are we really expected to believe that if the Romanian state was to retain sole control of the gas; extracting it, refining it and selling it, it would do so at a price beneficial to the Romanian consumer?
Get real.
Indeed, it would probably do the job so inefficiently that their would be shortages of gas, and prices would go through the roof.
No, whoever gets their hands on the gas will sell it at a profit. As well they should, else it would stay in the ground forever. The Romanian state will place a tax on any gas extracted, which will go into the government’s coffers: this indirect windfall is the only benefit Romanians can expect from this week’s decision.
When was it ever not thus?
{ 2 comments… read them below or add one }
I agree to the OP, but take this circus off Romanians’ reach and they will starve. As for the benefit, there might be some more apart from tax, i.e. relying less on Russian gas which – for the time being – comes via Ukraine.
What amazes me is how they managed to sell “the bird sitting on the fence” or “the fur of the bear in the woods” to say it Romanian style… how can you sell something that you don’t own?!?!