Friday 27 July 2018

It is the time to test if Trump is pro-Russia


 Many talk show hosts in the US make jokes about Trump is a Russian spy and one of the hosts even make a joke that if Trump were a Russian spy, what he would do differently. Now is the time to test if Trump is truly pro-Russian. Trump had a meeting with European Commission chief Jean-Claude Juncker at the meeting and they announced a "new phase" in EU-US relations after the meeting. One of the agreements made during the meeting is EU will buy US liquefied natural gas to diversify Europe's energy supply. Trump previously accused during the NATO summit that Germany's energy supply was controlled by Russia. In addition, the EU will buy more soybeans from US farmers.

The Trump administration is Republican and it is not surprising to see they make benefits for US oil companies, and the deal with the EU is great news for US oil companies. However, this deal will deeply affect Russia's finance negatively. The Russian economy is heavily dependent of its energy export; it is fair to say that the EU is the largest Russia's energy consumer and even the UK does consume some Russian natural gas. If the EU increases its consumption of US liquefied natural gas, it means that the EU will reduce its consumption in Russian natural gas, though liquefied natural gas shipped from the US is more expensive than natural gas transported by pipelines.

The deal with the EU certainly will benefit US energy companies and hurt the Russian economy, especially given Russia's heavy dependence of energy export. Therefore, if Trump makes the deal actually happen, it will be unfair to say that Trump is pro-Russian.

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