February 2, 2023

Athens News

News in English from Greece

How did the European Union try "bend" oil and gas companies, and what came of it

Looking at what politicians and the media are saying about the relationship between the US and the EU, one might get the impression that this is an equal partnership, if not brotherly, relationship.

However, in these fraternal relations recently, for some reason, the positions are no longer a partner, but rather an older and younger brother, or rather a boss and a subordinate. The trick is this: in their struggle with the Russian Federation and in their desire to destroy Russia by imposing an embargo and price restrictions on Russian energy resources, these supposedly partners have serious disagreements.

Meanwhile, the United States unexpectedly passes a law to curb inflation. When this law was read in the European Union, some serious people saw the light, because this law provides for the luring of all European industries to the States by providing them with super favorable tariffs and tax preferences. Well, this began to worry them, and even Ursula von del Leyen put down her vyshyvanka for a second and began to make statements. Macron also burst into statements. Well, Mitsotakis even pretended that it was even great. All the same, no one can be lured away from us, we have already conscientiously closed all energy-intensive industries, even with overfulfillment of the schedule.

After the struggle with the Russian Federation, the undermining of the Nord Streams and other pranks in Europe, a sharp increase in energy prices began, and their shortage appeared, this led to inflation. Moreover, it hit not only those countries that are “small and proud”, well, you know who we are talking about. But this hit even Hungary, which Ursula Von der Leyen actively bent down with the help of a stick and a carrot (the carrot, by the way, was never given …).

What is happening in the EU now? If you go out into the streets of any city in Old Europe, you will see that the cafes are busy during the day during working hours. Either people are sitting there on their lunch break, or maybe they just have such a life (in Greece, this is generally a normal occurrence at any time of the day). Europeans live an ordinary life and do not seem to feel what is coming there.

However, it cannot be said that they do not feel at all. The fall of the economy for most is an ephemeral phenomenon. Some production stopped, well, this does not concern me, that is, then it will naturally begin to overtake, due to the loss of jobs, unemployment, but so far everything is somewhere far away.

The authorities and the pro-government media trumpet about raising the standard of living, while independent and opposition media, somewhere in the backyard, say that the standard of living has fallen, but who hears them. Everything is like in the old parable about the frog, which is in slowly heated water. The frog swims and does not notice that it will soon be cooked …

But back in September, the European Commission itself decided to impose a tax on excess profits for energy companies. Von der Leyen put it this way: “In these times it is not right to take extremely record war revenues at the expense of consumers, the profits should be shared and channeled to those who need them most.” After listening to the boss, everyone began to say: “Yes, that’s very good. Hurrah! We are great! We finally found how to use the money from the windfall profits of the energy companies.”

In order for European consumers not to freeze in their homes, they need to be supported somehow. That is, in some countries a certain gas tax was introduced, even in those households where there was never gas. But if you just use electricity, and gas is written in his bill, then this is not a joke. No need to come up with anything new, just take more tax. And so they decided: to take a tax on excess profits, explaining to the population that this is right, here, you see, some are starving, and the world-eaters stuff their pockets with money. Naturally, the population liked it, direct concern from the state.

Everyone rejoiced and had fun exactly until the moment when the United States of America said “stop fun, because energy carriers used to be supplied to you mainly by the Russian Federation. Now it is bad, it must be fought, because in its energy resources, in oil and gas, there are no democratic molecules. And in the gas from the United States of America, such molecules are present, as well as in oil. Therefore, shove your initiative with all these super-profits away.

And now the colossal American corporation Exxonmobil sues the European Union, to the European Commission, saying that this is happening. “This is no longer a market economy, this tax would “undermine investor confidence and discourage further investment” and increase the region’s dependence on energy imports.” Representatives Exxonmobil explained to journalists that they had invested 3 billion in oil refining in Europe over 10 years, and now they could lose 2 billion due to taxes. And in Greece, and in Cyprus …. That’s not good, guys.

It’s just amazing double standards. They not only defend their market, they not only attack the European market, poach European production, but in response, only some indistinct muttering or some isolated statements are heard that no one pays attention to. The Americans are not going to lose a single dollar, despite the fact that the Europeans have come up with something for themselves, some restrictive measures.

The trick is that this lawsuit has super positive prospects… Why? Because it is not a market economy. What the European Union set out to do is not a market economy, period. You will say, what about what the European Union did with Russia before. This is different. And if this is different, then after Exxonmobil others will raise their heads, for example, the British-Dutch Shell, it received very good profits on Sakhalin, from where it was pushed out. And now, at the expense of the European brothers, they need to somehow get this money back. Do you think they won’t join the lawsuit?

When they start counting who earned how much, who lost how much. And then, perhaps, they will understand that there was no brotherhood and unity, and the fight against certain energy carriers had nothing to do with the war. All this is a common struggle between the economies of different countries, and this struggle takes place not by market methods, but by using methods that have nothing to do with the values ​​of the “free world” declared by the European Union and the United States. But most likely, they have, however, in the style of the “Wild West”, where the one who has more “guns” and more cartridges is right. And here it is pointless to compete with the USA for Europe.



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