Book your ticket to happiness with Sun Express Airlines. This is John Batchelor, speaking with colleague Michael Bernstein of the Hoover Institution about the sanctions regime

on Russia after the invasion of Ukraine.

We come to natural gas.

Gas prom.

The greatest company in the 20th Century created around 1970, Michael teaches me.

However, it's gone.

It's Financial Times headline, bankrupt.

Without a future, much smaller. What happened?

Michael explains. It wasn't sanctions. Here's the explanation as Michael says.

They shot both feet. Both feet.

Michael Baronstom, Hoover Institution, more of this later.

Actually, they shot themselves in both feet because the gas, natural gas has never been sanctioned.

It is them themselves, they deal it to themselves, that this is the collapse of the 55 years of history.

In 1970, there was something that was called the deal of the century

between Germany and Russia.

The project called Pipes for Gas, Gas for Pipes,

so the Germany provided pipes, built a huge pipeline from Siberia to Europe, provided cheap gas from Russia,

it saved Europe partly from the oil crisis of 73 from the recession of the time.

For 50 plus years this gas went to Europe and in 22 the Russian said are you are helping Ukraine we will turn it off we'll

turn all the well so the Russians did it and then there was an explosion of these pipelines and suddenly the Russians lost a market of 200 billion cubic feet of gas per year and now Gaspromise actually bankrupt,, lives of oil, not of gas.

It was the greatest, largest energy company in the world

before the shale revolution, and it is gone.

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