Resource Battle in Crimea

      Russia’s possible annexation of Crimea poses some issues regarding the control of the Crimean resources in the Black and Azov Seas. These areas are prime areas of land that are extremely rich in natural resources. Crimea is a large oil and gas producer for many areas in and around Ukraine. 

http://www.marketwatch.com/story/oil-holds-steady-ahead-of-iea-

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http://www.google.com/hostednews/getty/article/

Days before the Crimean referendum, Crimean officials publicized their plans to nationalize Chornomornaftogaz, a subsidiary of the Russian based company Naftogaz that exploits the oil resources of the area.

       Following this, it was revealed that the Russian army commandeered the oil and gas production just off the Crimean border. The fact that Russia possesses one of the strongest naval powers eliminates most possibility of military retaliation for the confiscation of the oil production. Russia is clearly coercing Crimea by controlling its assets and its only producer of natural gas. On top of that, Chornomornaftogaz is one of Ukraine’s largest assets and providesimportant tax revenues. 

      The seizing of Chornomornaftogaz will hit Ukraine’s budget hard, but it also acts as a threat to Crimean and Ukrainian security; Russia’s overwhelming military presence in the area is a stressor for the region, and tensions are definitely high and rising. 





Original Source:  
http://www.themoscowtimes.com/opinion/article/kievs-energy-security-threatened-by-moscow/496496.html