Philippe Lemoine

Philippe Lemoine

@phl43 · Twitter ·

This was already true under the Soviet Union and it wasn't just true for oil but also for natural gas. The Soviets were extremely dependent on Western technology for pipes and compressor stations, because their industry was always lagging behind. It's actually interesting how this dependence came about. After the invasion of Czechoslovakia in 1968, not only did the West Europeans — with the support of the US at the time — chose not to stop engaging with the Soviet Union, but they actually decided that they should have more of it. This led to the FRG's Ostpolitik and détente at the political level, but at the economic level it took the form of loans to the Eastern European countries and agreements to import natural gas from the Soviet Union, which initially were organized as barter where West Europeans sent pipes and compressors in exchange for gas. The Soviets used that equipment not only to build the infrastructure needed to export natural gas to Western Europe, but also to build their own domestic natural gas supply network, which would have been much more difficult and costly if they had been forced to rely on their own technology. But although hawks today would have castigated this policy as "appeasement", it also made the Soviet bloc economically dependent on the West, which gave the West leverage it wouldn't have had otherwise. The Soviet Union now depended on Western imports and, after loans from private banks dried up as a result of the Volcker Shock, didn't have the financial heft to cover for the external deficits of their Eastern European satellites. This is one of the main reasons why, although this wasn't known at the time because they kept it a secret and tried to exploit the ambiguity, by the time of the 1980-1981 Polish crisis, the Soviet leadership had in effect abandoned the Brezhnev Doctrine and decided that they wouldn't intervene even if Solidarnosc took over the Polish government.

Phryne Astynome

Phryne Astynome

I just want to point out that it shocks me how Russia (and the Soviet Union in the past) depends on foreign oil field equipment. Considering how oil is Russia’s biggest export, you would think they would build their own oil field equipment.