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Gas Tentacles. Russian Domination of European Gas Markets

Titel: Gas Tentacles. Russian Domination of European Gas Markets

Essay , 2016 , 12 Seiten

Autor:in: Harel Tanjong (Autor:in)

Geowissenschaften / Geographie - Wirtschaftsgeographie
Leseprobe & Details   Blick ins Buch
Zusammenfassung Leseprobe Details

This report examines the geopolitical situation between Europe and the Russian Federation. Observers have noted the tepidness of some European nations to oppose Russian interest. We believe this is due to Russia’s comparative advantage in the energy sector, specifically Natural Gas.

This resource, abundant in Russia, is the cornerstone of European energy use especially for nations of the former Soviet Union, creating economic pressure for them to agree to Russian demands. Being an abundant and relatively clean resource, natural gas is a preferred source of energy. Control of Russian supplies is dominated by state-owned Gazprom, which is the largest company in the country and exerts significant influence in the Russian Government. This report will also examine solutions for Europe’s energy independence and security through strategies such as anti-trust action and new investments in domestic production.

Leseprobe


Table of Contents

Thesis:

Importance of Natural Gas:

Natural Gas In Russia:

Gazprom:

Russia’s Geopolitical Influence:

Possible European Strategies for Energy Independence:

Conclusion:

Research Objectives and Core Themes

This report analyzes the geopolitical dynamics between the European Union and the Russian Federation, specifically focusing on how Russia’s dominance in the natural gas sector creates a strategic dependency. The study aims to evaluate the mechanisms of this influence and proposes pathways for Europe to achieve greater energy security and independence through market-based reforms and infrastructure diversification.

  • The role of Gazprom as a tool of Russian foreign policy.
  • The impact of energy dependency on European diplomatic and economic unity.
  • Evaluation of historical and current gas transit disputes, particularly with Ukraine.
  • Strategic alternatives for Europe, including the utilization of Caspian Sea resources.
  • The necessity of implementing a cohesive European energy policy.

Excerpt from the Book

Russia’s Geopolitical Influence:

In Europe, a cohesive energy policy/ strategy is virtually nonexistent. Matters of energy security are often left to individual states or the free market (Baran 2007). Russia has taken advantage of this lack of cohesion to secure top deals for its gas exports. Many European countries, particularly the former Soviet republics, are heavily reliant on gas for energy. This is especially the case during the very cold eastern European winters (Gawdhat 2006). European attempts to construct routes that circumvent Russia by passing through central Asia have largely been blocked by the Russians (Baran 2007).

Vladimir Putin has successfully leveraged Russia’s economy of scale with gas as a political tool to influence Europe. Presently, there is no ready alternative to Russian supplies. The Europeans are hooked on what the supplier has to offer, “Thus if a supplier refuses to supply gas or charges an unreasonable price, the consumer cannot quickly or easily turn to another source. The consumer state would have no choice but to accept the suppliers’ conditions or go without natural gas, an option that is all but unacceptable for most” (Baran 2007).

Summary of Chapters

Thesis: This section introduces the core argument that Russia uses its abundant natural gas reserves as a political and financial instrument to exert control over neighboring European states.

Importance of Natural Gas: An overview of the versatility and global necessity of natural gas, highlighting its status as a cleaner, cost-effective fuel source for modern economies.

Natural Gas In Russia: This chapter traces the historical development of Russia’s gas industry from the 19th century to the modern era, emphasizing the significance of Siberian reserves.

Gazprom: An analysis of Gazprom’s evolution into a state-controlled corporate behemoth that dominates the Russian energy sector and serves as an instrument of the Kremlin.

Russia’s Geopolitical Influence: A detailed look at how Russia exploits European energy dependency to influence foreign policy and divide the continent’s stance on key issues.

Possible European Strategies for Energy Independence: Explores potential solutions for Europe, including infrastructure projects like the Baku-Tblisi-Ceyhan pipeline and increased engagement in Central Asian markets.

Conclusion: Synthesizes the main findings and reiterates the urgent need for a unified European energy strategy to break the current monopoly grip held by Russia.

Keywords

Russia, Geopolitics, Natural Gas, European Energy, Gazprom, Energy Independence, Energy Security, Pipeline Infrastructure, Foreign Policy, Market-based Reforms, Central Asia, Energy Strategy, Dependency, Transit Disputes, Energy Markets.

Frequently Asked Questions

What is the primary subject of this report?

The report examines the geopolitical situation between Europe and the Russian Federation, focusing on how Russia utilizes its control over natural gas supplies to influence and pressure European nations.

What are the central themes of the work?

The core themes include energy dependency, the role of Gazprom in state-sponsored foreign policy, the impact of the free market on energy security, and the necessity of strategic diversification for Europe.

What is the research goal of this document?

The goal is to analyze the extent of Russia’s domination over European gas markets and to propose viable strategies, such as anti-trust actions and new infrastructure investments, to achieve European energy independence.

Which scientific method is applied?

The work employs a political and economic analysis, utilizing historical data, energy market reports, and case studies to illustrate the relationship between energy supply and political sovereignty.

What topics are discussed in the main body?

The main body covers the history of Russian gas development, the rise of Gazprom as a corporate entity, the leverage Russia gains through existing pipeline networks, and specific case studies like the gas disputes with Ukraine.

Which keywords define the research?

The research is characterized by terms such as Russia, Geopolitics, Natural Gas, European Energy, Gazprom, and Energy Independence.

How does the "revolving door" between the Russian government and Gazprom function?

The report describes a "revolving door" where high-ranking government officials frequently serve on the board of Gazprom, ensuring that the company’s corporate strategy and the Kremlin’s political agenda remain in lockstep.

Why are European attempts to diversify energy sources often blocked?

European attempts to construct alternative routes, such as those through Central Asia, have been countered by Russia through aggressive deal-making with transit countries and the leveraging of political influence to disrupt potential pipeline projects.

What role do sanctions play in Russia's market strategy?

According to the text, sanctions resulting from the Crimea crisis have prompted Russia to seek new export markets, notably shifting focus toward China to diversify its customer base and reduce the impact of Western political pressure.

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Details

Titel
Gas Tentacles. Russian Domination of European Gas Markets
Autor
Harel Tanjong (Autor:in)
Erscheinungsjahr
2016
Seiten
12
Katalognummer
V343280
ISBN (eBook)
9783668336988
ISBN (Buch)
9783668336995
Sprache
Englisch
Schlagworte
Gazprom gas lines gas market pipeline Russia russian Government natural gas
Produktsicherheit
GRIN Publishing GmbH
Arbeit zitieren
Harel Tanjong (Autor:in), 2016, Gas Tentacles. Russian Domination of European Gas Markets, München, GRIN Verlag, https://www.grin.com/document/343280
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