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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 5: The increased politicization of Russian gas supplies

James Henderson and Arild Moe

Extract

The attitude to Russian gas in Europe has been ambiguous, with on the one hand a strong interest in securing the continuation of Russian gas supplies, while on the other various policy initiatives have been introduced to limit further expansion of Russian gas exports. Efforts to stop Russian pipelines have had mixed success, mainly because there are disagreements within the EU. The politicization of Russian gas in Europe has increased markedly since 2014 and gas issues are tightly connected to the conflict between Russia and Ukraine. Nevertheless, Russian gas exports have soared. One implication of this development is that transit through Ukraine will still be needed even if the new pipeline under the Baltic Sea – Nord Stream 2 – becomes operational.

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