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The Globalization of Russian Gas

Political and Commercial Catalysts

James Henderson and Arild Moe

Since the collapse of the Soviet Union, Gazprom has dominated the Russian gas industry. However, the markets in which it operates have changed dramatically, with the company increasingly being challenged at home and abroad. At this critical moment, this insightful book analyses the involvement of the Russian gas industry in the changing international gas market and the dramatic implications for Russia’s role as a global supplier of gas in the future.
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Chapter 4: Gazprom and the evolution of the European gas market

James Henderson and Arild Moe

Extract

Chapter 4 briefly reviews the history of Soviet and Russian gas exports to Europe. The main discussion is on how changes in the way gas is traded and the market in Europe is regulated by the EU have affected Russian gas exports. While the movement from long-term to short-term contracts and market-based pricing has been very much against the will of Gazprom, the company has adapted. Indeed, the chapter argues that the development of an integrated European gas market, which partly was intended to limit the need for more Russian gas, has actually worked in Gazprom’s favour.

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