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Andy asked/commented:

1. Tell us more about this:
" (in case you were wondering what all that revenue for the massive amount
of natural gas being sold to Germany was for)"

The significant increase in military spending (like finishing, updating and
deploying) for Soviet era navy expansion coincides with the generalized
increase in gas prices and higher oil prices when the Putin regime came to
power. The gas industry exports have increased for the last 20 years but
got a real go ahead in the early 2000s when the major pipeline upgrades
(including bypassing Ukraine) occured. There were actually two pipelines,
one through Turkey for non-Russian Caspian gas and one from the Baltic
right to Germany from mainland Russia.

Russia earns approx. $40 billion a year from gas exports alone which have
increase relative to the much larger (historically) oil exports to Europe
because of the stability of gas prices vs that of the fall in oil prices.
My comment was somewhat snarky since it and remains the bed rock to the
Germany's renewable energy project...that is the massive back up of wind
and solar for German's renewable plan. The overall increase, anyway, is
what allowed for the massive professionalization of Russia's armed forces,
financed the latest and greatest jet fighter-bombers now on display in
Syria and on the one aircraft carrier I mentioned previously.

However, Russia has spent far more rubles on infrastructure upgrades (rail,
Vladivostok commercial port facilities, now, also, an increase in the
military port in Sevastopol as well.). Even Russia's nuclear energy
expansion, proceeding with few if any hiccups, is designed to allow Russia
to sell more natural gas to Europe rather than an altruistic climate
benefit. But, indeed...Euro sales of gas (and oil) have allowed for Russia
to go gang-busters on high-tech navy ships. It is Russia, not the U.S. that
has the most advanced navy anti-ship missiles in the world. The US isn't
even close on this score.

2. Agreed, in strictly military terms this is probably no setback.
But in political terms it's still highly significant

I agree...politically it was a set back for the Russians.

David
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