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Putin’s birthday gift

Vladimir Putin is 69 today and the German-speaking former KGB agent is enjoying some birthday schadenfreude over Europe's gas crisis.

An "erroneous" push by European Union officials for spot-market gas trading over the long-term contracts Russia favors is partly to blame for soaring prices, the Russian president declared yesterday. "It was very difficult to talk with the so-called experts, because they do it with a certain amount of snobbery," he said.

European nerves are so jangled that Putin's offer to "think over a possible increase in supply" was enough to ease prices.

His intervention against "speculative excitement" was also a reflection of Russian concerns that an unstable market may harm its long-term interests as an energy supplier if nations respond by accelerating a shift to greener alternatives.

Yet Putin doesn't do altruism even for his birthday, and cold political calculation lies behind the offer. He ruled out increasing supplies through Ukraine — where Moscow backs separatist fighters — to focus on the Nord Stream 2 gas pipeline linking Russia and Germany that's awaiting certification after years of U.S. attempts to scuttle the project.

Putin spoke a day after some EU lawmakers questioned the pipeline's compliance with the bloc's laws. Deputy Prime Minister Alexander Novak noted that rapid certification of the project would send a "positive signal" to the market.

Even as he's taking climate change more seriously (out of economic pragmatism if not true belief), Putin also couldn't resist a dig at Europe for seeking carbon neutrality at "our expense" with a border levy that will hit energy-rich Russia.

With winter approaching, Europe suddenly needs Putin after years of confrontation and sanctions. That strengthens his hand in seeking concessions and deterring new penalties.

Not a bad birthday gift.  Anthony Halpin

The Nord Stream 2 gas pipeline landing facility in Lubmin, Germany.

Photographer: Alex Kraus/Bloomberg

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