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tv   Inside Story  Al Jazeera  September 5, 2022 10:30am-11:01am AST

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state and federal authorities are being blamed for allowing jackson's infrastructure to crumble for decades. jackson is overwhelmingly black and many say race is a factor. we have been getting punished for quite some time for being a predominantly black city. i can recollect these issues for as long as i've been here, and i was born in 1983 in jackson and over time the situation has gotten worse. we are not receiving any funding from the state of mississippi to improve the war. jackson's plight has grown so bad, it's received national attention, local state and federal authorities are now focused on distributing aid and getting water flowing again. but while the current crisis will eventually be resolved, correcting for decades of neglect will be a longer term challenge. vinson monahan, al jazeera, ah,
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this is al jazeera, these, you top stories, the u. k. will learn who will be. it's next prime minister in the next few hours with live trust the foreign factory seen as a favorite. the governing conservative party has been choosing between for us and the former, the finance minister, where she tonight, jenna hall has more undoubtedly priority number one. so either will be to get to grips very, very quickly indeed with this series of deep dimes domestic problems, inflation predicted to hit 20 percent by the end of the household energy prices, gas and electricity that could be by january next year 3 times what they were just a year ago, strikes across public services. a struggling health serve is 18 britton's a currently on an h. s. waiting list. and of course winter is coming when many people will struggle to pay their heating bills will struggle. indeed to eat and may have to choose between the 2. teneo supreme court is due to deliver a verdict on a challenge to last month's disputed presidential election. william route,
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i won by a narrow margin. his opponent, the veteran politician, rollo dingo says the vote was rigged. voters in chile have overwhelmingly rejected a proposed new constitution in a referendum. it would have replaced, one, drafted a 19 ac on the military rules or to say it was progressive. critics fit it would divide the nation 10 people are dead and at least 15 others have been injured off to a series of stabbings in the western canadian province of saskatchewan. such is on the way for 2 suspects. a palestinian man has died of his injuries off to being shot by israeli soldiers in the occupied westbank. that's according to the palestinian health ministry. israeli ami right in the town of combat tia, in the early hours of monday. it led to confrontation between the soldiers and a group of palestinian men. the euro continues to depreciate against the dollar.
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the european currency has fallen to $0.99 against the dollar, which is a 20 year loan. the euro's been hammered by economic turbulence, an uncertainty sparks by russia's invasion of ukraine. those you have lines coming up next inside story, stay with us. one day i might be covering politics in the next, on my quote, also from serbia. go hungry to what's most important to me, just talking to people, understanding what they're going through so that i can convey the headlines in the most human way possible. here dr. sierra, we believe everyone has a story worth hearing. yours and as requires his gets worse, russia has shut down the law stream one pipeline. once again, it says it's because of maintenance with 2 of the leaders have rejected that. so how will europe cope with this unprecedented gas shortage? this is insightful re
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ah hello, welcome to the program m hashim aha bower. master of the continent of europe is facing a difficult winter had russia has once again shut down the cushion law stream one gas pipeline to germany. it's raised fears of short as years and possible blackouts in the coming months. russian authorities say the pipeline was shut to repair a leak, but european leaders have rejected this accusing russia weapon, ising energy, in response to the cranes sanctions. russian state own firm gas problem says a german companies ready to carry out repairs. but siemens energy has denied this, saying it has not been approached german chancellor,
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olive schultz insists his government is doing all his can to avoid a crisis. be of any type, the style inhibition. we will survive the time until vin, because we have made timely decisions in the past months to store guess because, because we're putting coal fired power plants back into operation. and this is why we can say now, and at this point we will get through this winter. the north stream one carries russian gas by supplies to europe. it stretches a 1200 kilometers under the baltic sea from the russian coast to north eastern germany. russia has already significantly reduce gas exports through the pipeline. it prompted nearly 450 percent jump in european gas prices compared to this time last year. but the kremlin has repeatedly blamed western sanctions for the crisis. ah,
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lettering in our guests in moscow, stan islov metro, which a leading experts of the national energy security of fund and a researcher of the moscow based financial university in paris. an sophie cobo global research scholar of the center and global energy policy. and the for the had of gas analysis, our british petroleum in berlin, been heiress, founder and editor in chief of b. n. and e intel in years and the former moscow bureau chief for the daily telegraph. welcome to the program status love by turning off the tap is russia weapon, ising gas to retaliate against western sanctions. i think this is a resolution against western sanctions because of the position of moscow storage it authorities in russia. they see that previously trade with russia was weaponized by the west. russian reserves of central bank will basically nationalized or stolen
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this. it is considered in moscow that a european union decided because trade embargo and russian co, after that there was a decision to put embargo against russian oil. and they seemed rather well coming back to practice on the face of december 2022. so. busy from the point of view, frushell, this trade all ready weaponized and officially when it would fall off on the leg. and if you're again, commission, just couple of days ago, passion that european union needs to impose price cap on russian gas and price chemicals completely against the contract. the contract, you cannot see how european union really falls the contract. european union really wants to propose on russia, so from russian position. it's like you were doing the same thing that you have done. you cover a literate. now i do the same thing. why we should all of the contract. if you don't one of the concepts as well. and so do you see this
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link between the fact that the decision to shut down the and more stream one coincide coincides with the the g 7 decision to agree on a price cap for russian oil supplies. do you see the connection between both of them? i think it is a case and i think it is also a retaliation or trade amount and pressure on gas prices because gas prices have been coming down a little bit since the peak that we observed last week. last week we went to one other, the roster may be to you, which is equivalent of fav on plus 80 though last are the high which is extremely high. so i think there has been as 20th someone's ocean's point of view to always maintain pressure on gas prices in your hot, in order to inflict pain economic pain to the european union. and i think this has been visible since the beginning since an invasion offer crane by russia. we have
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seen 1st episode of the request to pay in what all and then some countries have been cutting party could are put on that, but get, yeah. and then some of their consumers were cut, then there has been in june the progressive reduction of flaws. oh, a furniture or gas furnace can one because it's very important to explain that these further reduction of not from one flows that we are seeing now this is just to last the piece of a new piece at which has been lasting, of the path of the month it started in june and think june, we have seen a progressive reduction just before he says it be that we were already at an 80 percent reduction. so what has been shut off for the past few days is just the last 20 percent look of just one pipeline which was still really in our towards europe burn anyway, the gas flows through the nordstrom one were at some how 20 percent of what the
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used to be before which was about 55000000000 cubic meters a year. still we're getting a sense of panic which slash to reverberate across europe, particularly in germany. indeed, i mean, follow up on announced by and this is a i think designed to keep the prices are, are, and that's the way has inflicting economic pain on europe. so the interesting, they got from the announcement it was shutting down 3 months completely after the market is closed and the prices have been falling last week. but when they open again tomorrow, i'm sure that they'll bounce up again. and that's been the strategies to keep the price is high. and ironically, although no streamline has been shut down and i said to fiddle shortages in europe, particularly here in germany. it should be noted that the gas tanks reached 80 percent full already last week. a full month ahead of schedule. so there's not
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actually a shortage of gas. in fact, we're slap in the middle of, we're average the should be going into the, the, the hating season. but the threat is that no strain one stays off, that there's no impulse throughout the winter that the tanks themselves are too small to get through the hallways that without continued imports to germany run out of gas after 2 months. if there's no more import. and so put in is just literally turning the gas on and off to keep tensions is extremely high. because at any point you can turn them off and keep them all. and then this, if it's a huge energy prices, you know, acids choosing where completely over the barrel on this one. and they just shut them off again with no date for when they're going to resume. but they're going to have to resume with europe is not going to go into a massive crisis that will involve rationing, that will involve industry signed and that will involve huge cost to the consumer
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status plan using gas as a weapon to further extract more confessions from the europeans, isn't this something that could backfire on the russian government on putting, in particular, because you get, in a sense that many people now are saying russia could not be taken seriously in the near future. as a genuine partner when it comes to gas or oil supplies, well, let's see, a line of, for whence you chose to fall. it was said by european officials that they don't see russia as the partner anymore, you know, just fear they already post embargo russian cole, embargo against russian oil it on the way. and it was said officially that european union will not be buying russian gas. so it was not, and there was not a specific date announced, but still it was understandable that your doesn't really want to be dependent on russian cath and frankly started in several years ago because of the whole grid
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agenda. and because the reliance of american ology and stuff like this. so i suppose after all, this was fed by european union in moscow and criminal people. 3rd, that basically we have already lost this market. we are not welcome to there any more. in this case, why should we help europe to pass through winter time, just to wait until union adoption you package of sanction and stop the gas flow from the small side in this case, why should we wait? i think that's kind of a good strategy issue. and if you look back of the previous sanction packages that really didn't seem to work out as was intended by the, by the west because they ended up creating this crisis. prices were skyrocketing and putting ended up having massive energy revenues. if you look at the new decisions, the new push to move forward with the price cap,
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which means that if you sign up to this agreement, then you have, you can only purchase the russian or at or below the price cap. is this something that could work dissimilar counters going with this? this is, this is very uncertain because i think a lot of countries are currently benefiting from accessed cheaper russian oil. i mean, you have to understand that you know, that i live at is coming from russia right now is not sold at market place. he's at brent places for example, but he saw that the discount so therefore the prices are good with the lower. but let me take a step back. i mean, the reasons for the sanctions at the very beginning where he know that lowers of, of the news that russia is getting on the oil on gas and on the cord in order to basically not give the impression that the west was financing as a war in ukraine because you know, there's, it's a weapon use from all the sellers are being used to in order to basically
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manufacture or set weapons in order to basically bombard cranes of issy's exec visa, point of the sanctions lowers of, of, and use that st. overture is basically using it, and therefore maybe at the end of the day, i mean, it's a question of stoppings a war. he says what he knows a west wants to do. now i agree with on the one thing which is that western liter there's been a little bit naive in thinking that by saying that, you know, there would put in place all distinctions washer, which has continued to develop a gaz, pearls or contracts. and in fact, russia as done completely the inverse and as dickens are lead because white no washer is in the trading seat in terms of deciding how much gas it wants to send to you hope and that it always a good excuse not to actually respect the contract, i mean either there is a problem with the knots in one by plane or people as not wanting to pay inevitable . so they are very eager to actually ships of blend towards the west for the problems,
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but they are creating with the cell is also the naval keys of natural gas towards it. what your hopes of it is very important to remember that because why is your particularly in pain and other countries as well? this is because markets, a global gas markets are extremely tight. and this is why we are seeing these pretty crazy prices of natural gas and also power. i mean, we eval to know a power crisis because to high gas prices are translating into very high power prices as well as naturally as is at the marching. and that's why your bnb does are trying to change that power price mechanism in order to basically decompose a price from, you know, cheaper. we saw c such as nuclear renew their bought made or farms at very expensive pies. okay? if we saw, see that call or natural gas been, it serves or this is a, an uncharted territory for every one the europeans and the west in particular,
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would like to pull more sanctions, more restrictions to see that putting does not benefit more from the revenues to direct those revenues towards the war in ukraine, but at the same time with the new price cap, an importer who is looking forward to have or seeking some services like insurance cover in europe will have to abide by the price gap. but do see countries like china, india, and many others who enjoy what is happening right now into this agreement. the price mechanism will not work unless china and india in particular come on board. and every indication so far is that they're not going to in so much, is the 1st process in getting this insurance is you need a safety certificate. and there's an international organization, a group of 11 national organizations that office the certificate. and india explicitly not only ignored the non issue,
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the certificate went out and certified the entire rushing face of come flux. and they have said that india said this week that they would only come on board with the oil cap price. steve, everybody else did, which is to say that there's just a very strongly that they're not going to get on board. so you talk to the industry, people, they're very skeptical that it could be made to work. however, even a partial implementation of this, this mechanism would put in a position where they can go to russia and say, well, the, you're getting less the market prices from other countries. if we're going to buy food from you, then let's talk about the price again. as i said, they're already getting it already starting at a discount. and so that discount may get even deeper, which will cost russia money. but my take on this is that she puts in, doesn't care about the profitability of the business. she just wants to make sure
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the revenue comes in sufficient in order to keep this budget balance. and in order to give some goodies to the russian people to stop them becoming unhappy and then im facing domestic fiscal problems. so i think it's going to be a budget job, but i mean, also done. we have to admit that the sanctions regime has not worked so many was a zine to take away russian revenue. and so it couldn't fight the war and exactly the opposite happened. and now we're in a stage where the west is trying to come up with, you know, sanctions on the same. and secondary sanctions. they're basically a bunch of band. it's trying to make sanctions that's already gone into place. we're going to deprive russia that revenue. and i say, i think this is this price, epstein is, is exactly that. it's not going to work very well because the danger here is that you actually cause a new spike. this time in oil prices. jack morgan said price is to go to $300.00 a barrel, which is twice the all time record. so this one could backfire as well. and the
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finance ministers, when they release the details on friday base, the said very little and more over they said specifically they said nothing about what price the cap is going to come in. ok, russians are said, anybody who joins that scheme was simply going to stop well, deliveries, and then we have a oil prices on top of the gas prices status love. what's next? full president, putting because for many years, russia by position itself as a clean energy supplier for europe had massive political and financial leverage that leverage could be lost. now with what is happening with turning off the tap. yes, i think this market can be lost and it was again, it was said officially by the union officials. they said we are saying good bye for rush. i guess we will not be spent on russian dance. we'll stop buying russian gas and french speaking the status several years ago. they've asked you, great, well, they have accelerated,
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this trend. nothing more. as for what you're going to do next, i think he will still try to again, was not a string one. and possibly there will be an intrigue concerning changes via craven, because it's tracy or ukraine can also be stopped. but in this case, russia will have difficulty in sandy gas to chance. nice trim. you know, i don't, in this region or from although that is for russian region. and if this transistor loses gas, in this case, there could be a tremendous re events from craig inside and model one side. so this is the intrigue. what's happening with, with ukraine route, as we'll talk stream road, and then did go through balcony countries. it's also in a tree ship because russian authorities decided to support category and particular premier or, or run in setting lock as to kangaroo with lower prices. but henry definitely decided to resell the gas to its neighbors, a primary to austria, asheville,
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lakia. so again, it's an intrigue we'll put in, allows this just to flow too angry than to the rest of the country. and germany as we speak now, it's storage facilities are now 84 percent for it, which means in theory they should be fine for the time being. uh, what about the midterm and long term implications? i mean, just of all you don't get all winter with just storage. i mean, this is very important. you need to have certain amount of imports. and then on top of that, you are using still hedge because you need to covers the heating demand during the day, which is essentially coming from the residential sector. and then during the period, april to october, you are going to we're fi storage. so if we are, would you seen natural gas on wash r feather or other, if wash or would you see its export to europe even further?
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there will be a problem going for going there after twin is a winter 2020 to 2023 because we, we need to revisit to like even if we are fine and this winter. the problem is that the global gas market is going to be tight until the end of 20252026. why? the time? because there is a lot actively detail. ellen, she export capacity coming to the market, and russia is putting pressure on your hop right. know precisely because it knows that there is holla tivoli liter as tentative sources available. besides what you hop as already managed to secure. so there is a lot of money coming to europe right now at a very expensive price, but it's very doubtful that you can get even more. and on top of that very, the const, 20 debs of the in hutcher been one of the, one of the earth follows from the war in ukraine and the other, the sky rocketing oil prices are compounded,
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were the inflation now the german chancellor or has agreed on a $65000000000.00 relief package. would it be enough to tackle those problems, particularly in inflation, which is becoming more of a global her issue here? this is the big problem and i think it's one people are not paying enough attention service. the cost of this war is proving already to be enormously expensive. the germans just put a new 65000000000 euro package, just the core for industry in the depot. but this is on top of the 60000000000 they've already spent. so it was already spent $52000000000.00. if you look across europe, the bill is already up to about 300000000000 dollars years. and this is before the winter stars because they're going to subsidizing these heating bills to the population. as barbara, the foreign minister said, there's going to be demonstrations, protest in berlin,
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about the rising costs. i mean in the u. k. getting bills are going to tennis. and on top of that, you've got the inflation 9 inflation in the in the k just went over 10 percent with the 1st time it says he is and the rest of europe, or just about to go ahead and double digit. and this is going to get worse as the teaching bills joe up. and i think this is a strategy he's just going to take so much pain to make the prices of the consumers that much painful to the point where they protest. and just yesterday, in prague there was 70000 people on the streets, protesting against the energy prices. across the living, demanding chief cast, and they're going to put pressure on the government in order to come to some sort of arrangement to come, you know, a ceasefire with russia. and i say, i think the winter goes on. this is going to get worse and looking at what it's going to cost by the end of the season, maybe a trillion euros, and i'm not sure you're past the money to pay for that. certainly doesn't want to
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be extremely painful. status of isn't put in, in a way or another, pushing people to look for alternative renewables and for the europeans in a way or another to move forward to new suppliers they could do business with for the longer run is olivia now by your extent a trying to find another supplier that your p and union for you will let us that. so who for put in is just a particular time to act right here right now, because in several years from now, maybe from 5 years from now, who are plenty of gas and oil, and free oil and g, not so expensive and you this why pay for it to move right here right now. why wait this 5 years? why stop this is gas corporation with europe when it is convenient for you are probably better to stop this corporation when it is less convenient for you in order to gain some political results over which i really think that could be kind
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of kind of an amendment of political course in different european countries, especially after social address. like what happens in pro just referencing, probably people will just call that politicians to find a compromise instruction based on all of your grandchild. i was just fascinating, the way the geopolitics of energy trying now to play out globally, studies love metro, which sophie co been are, is a really appreciate your insight. but unfortunately, we have to live with that. and thank you for watching. you can see the program again, any time by visiting our website and just, you know, dot com for further discussion. go to our facebook page. that's facebook dot com, forward slash a jane slice laurie. you can also join the conversation on twitter, our hand, that is at ha insights thought if, when we asked about, and the entire team here in bo huh. bye for now.
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for the latest news, as it breaks, doctors here tell us that they're desperate to get more antibiotics and other medical supplies for to those who are injured with detailed coverage, a demand for bag as well, from around the world given as the new king to parts a new to sing his praise, loy a loyal b. this is architect by john neal, his self appointed time to create sustainable housing for the rural poll. to bring tropical beauty back into vietnam's, choking urban space. and to convince developers that his dreams are attainable,
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