In the midst of the Cold War, the first large-scale pipeline to export Russian gas via Ukraine was completed in 1967
The USSR wanted to trade/profit with the capitalist West, while also exerting soft power. Meanwhile, the West needed fuel to feed their growing industries
The USSR wanted to trade/profit with the capitalist West, while also exerting soft power. Meanwhile, the West needed fuel to feed their growing industries
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This makes sense, given Austria's ties with the USSR and its neutral position during the Cold War. But the 23-year deal to buy Russian gas was the first of several dominos to fall
This was part of a "gas for pipes" strategy, where West Germany supplied the USSR with equipment in exchange for gas from a new field
It coincided with Chancellor Brandt's push to build relations with its eastern neighbors
(This came despite criticism from the US)
Gas continued flowing during that period, and countries became more dependent
By the early 1980s, Germany depended on the USSR for 20% of its gas needs. Austria was half
(NYT, 1981)
Independent Ukraine agreed to continue transiting Russian gas to Europe. That led to some nasty disputes on transit fees
And pushed Russia to explore other routes that circumvented Ukraine