Can Putin survive the continual decline of the Russian economy?

Tatiana Jancarikova (left) reported (7 February, 2019) that Angela Merkel stated that,

“Do we become dependent on Russia due to this second gas pipeline? I say ‘no’, if we diversify at the same time,” Merkel told a news conference in Bratislava, where she met the leaders of the Visegrad group - Czech Republic, Hungary, Poland and Slovakia.

Diplomatic sources have said Germany is pressuring other European capitals to block an EU proposal to regulate Nord Stream 2 ahead of a key meeting on Friday but may fail to convince France, threatening the project’s construction." (Reuters : 7 Feb., 2019) (my emphasis)

Since that statement of Putinversteher Merkel, she has finally managed to convince Macron to agree to the Nord Steam 2 project.

But here comes the rub! 

As reported by Adam Vaughan,

"... this month a compromise deal on pipeline rules was forged by Germany and France, which should allow the scheme to proceed.

Under a deal agreed earlier in February, the pipeline must meet four EU rules, including a telecoms-style unbundling requirement whereby other suppliers be allowed access to the pipeline.

However, Germany will be the ultimate arbiter of how the regulations are applied. " (The Guardian : 25 February, 2019) (my emphasis)

It would seem that BOTH Merkel and Macron must be woefully ignorant of just how Putin's invasion and annexation of Ukraine's Crimea was also, in effect, a resource grab.

As reported by Ariel Cohen (left),

"There are nine so-called “blocks” of natural gas available for licensing in Ukraine’s Black Sea, the potential of which ranges from 92 billion cubic meters (bcm) to over 500 bcm, according to an April 2018 survey conducted by Deloitte.
...
Moscow’s intent to exploit Ukraine’s natural gas deposits is not just idle speculation; it is currently underway. When Russian forces annexed Crimea in 2014, they seized subsidiaries of Ukraine’s state energy conglomerate Naftogaz operating in the Black Sea. The Kremlin appropriated these companies — and billions of dollars of equipment — and delivered them to Gazprom, Russia’s state-owned energy giant. In one fell swoop, Russia ended Ukraine’s offshore oil and gas operations and bolstered its own." (Forbes : 28 February, 2019) (my emphasis)

The compromised Nord Stream 2 deal forged between Merkel and Macron, with Merkel being the  ultimate arbiter of how the regulations are applied, once again emphasizes just how Merkel is indirectly bankrolling Putin at the expense of Ukraine.

Once Nord Stream 2 becomes operational at the end of this year Putin, with the help of Merkel, and now also Macron, will effectively be in near total control of Ukraine's energy needs.

All of this puts into stark perspective just why Putin is now flooding the Black Sea with his warships and submarines. 

It also puts into sharp perspective the critical importance of Ukraine's upcoming presidential elections.

We should also bear in mind Putin's nuclear missiles that now face Ukraine from Putin's annexed Ukraine's Crimea, not to mention the veritable Russian army on the Russian-Ukrainian border.

The 'fly in Putin's ointment' is still, however, those pesky EU and US sanctions that is causing Russia's economy to stutter and decline.  

Putin's 'Manchurian Candidate', Donald Trump, is now clinging by his fingertips onto his presidency as more is revealed not only about the collusion between himself and Putin during the 2016 US presidential elections, but also about Trump's criminal mind-set.

So, whilst Putin may be gleeful about Merkel and Macron giving Nord Stream 2 the 'green light', as reported by Marek Dabrowski and Antoine Mathieu Collin (right)

"The weak growth prospects [of the Russian economy] are caused by several factors including:

(i) adverse demographic trends – a declining working-age population and ageing of the population; (ii) a poor business and investment climate;
(iii) difficulty in diversifying away from the dominant role of the hydrocarbon sector;
(iv) Western sanctions on Russia in response to the annexation of Crimea and Russian support for separatists in the eastern Ukraine Donbas region, and Russian counter-sanctions." (Bruegel : 7 February, 2019) (my emphasis)

Can Putin survive the continual decline of the Russian economy?

(to be continued)