“Poland’s prime minister said on Monday he would ask Chancellor Angela Merkel to work to reduce German and European dependence on Russian gas to avert ‘potential aggressive steps by Russia in the future’.

Merkel will visit Poland on Wednesday to discuss the crisis in Ukraine, where Russia has effectively taken control of the southern Crimean peninsula. Events there have highlighted European reliance on Russian oil and gas.

Ukraine is a major gas transit nation for supplies from Russia to the European Union (EU), which relies on Russia for over a quarter of its gas.” – Reuters

We think: as conflict brews, Europe is increasingly restless. 30% of Europe’s oil & gas is imported from Russia. If the current situation escalates, then Russia has the power to make things very difficult for Europe.  Of course this hasn’t come about by accident. Despite his former Communist résumé, Putin perfectly understands the nature of markets.

“We will not be able to efficiently fend off potential aggressive steps by Russia in the future, if so many European countries are dependent on Russian gas deliveries or wade into such dependence.” – Donald Tusk