Examine the role of Gas fossil energy in Russian foreign policy towards the European Union?
IFI 3
GEOPOLITICS
Final Essay
Examine the role of Gas fossil energy in Russian foreign policy towards the European Union?
[Tapez le nom de l'auteur]
18/03/2013
The Gas industry is an important geopolitical issue as it is not a renewable energy but a necessary one. Today, the main gas resources are predominately located in Russia, then
Middle East and finally the United States and Africa. Alone, Russia represents 18.3% of the world total resources in gas (January 2010). In addition, oil and gas constitute about half of the Russian’s budget revenue. It also gives a large bargaining power to this country, which is part of the BRICS. Therefore, we can ask ourselves the following question: how does the gas industry impacts the relationship between Europe and Russia.
To answer this question, I am going to briefly present the Russian gas company
Gazprom and why the gas issue is crucial to the relationship between Europe and Russia.
Then I will present the several tensions between the two actors. To finish, I will present the actual situation.
The Russian gas company is named Gazprom. In 1989, with the collapse of the
Soviet Union, the gas policy of the government had to change. As a result, in 1992, the gas public company became private. Even if the statut is private, the state is widely influencing the company’s policy. For example, the CEO was designated by the Russian president
Vladimir Putin in May 2001. "The gas industry should be in one pair of hands, in state hands" the latter CEO, Rem Vyakhirev, told Forbes Magazine. This indicates dealing with Gazprom is dealing with the entire Russian government.
The Russian company plays an important role in the relationship between its country and the European countries. It provides almost 30% of Europe’s gas need, making it the biggest supplier.
Russia and the European countries need each other more than they want to admit.
It can be argued, Europe needs Russia as the former has
GEOPOLITICS
Final Essay
Examine the role of Gas fossil energy in Russian foreign policy towards the European Union?
[Tapez le nom de l'auteur]
18/03/2013
The Gas industry is an important geopolitical issue as it is not a renewable energy but a necessary one. Today, the main gas resources are predominately located in Russia, then
Middle East and finally the United States and Africa. Alone, Russia represents 18.3% of the world total resources in gas (January 2010). In addition, oil and gas constitute about half of the Russian’s budget revenue. It also gives a large bargaining power to this country, which is part of the BRICS. Therefore, we can ask ourselves the following question: how does the gas industry impacts the relationship between Europe and Russia.
To answer this question, I am going to briefly present the Russian gas company
Gazprom and why the gas issue is crucial to the relationship between Europe and Russia.
Then I will present the several tensions between the two actors. To finish, I will present the actual situation.
The Russian gas company is named Gazprom. In 1989, with the collapse of the
Soviet Union, the gas policy of the government had to change. As a result, in 1992, the gas public company became private. Even if the statut is private, the state is widely influencing the company’s policy. For example, the CEO was designated by the Russian president
Vladimir Putin in May 2001. "The gas industry should be in one pair of hands, in state hands" the latter CEO, Rem Vyakhirev, told Forbes Magazine. This indicates dealing with Gazprom is dealing with the entire Russian government.
The Russian company plays an important role in the relationship between its country and the European countries. It provides almost 30% of Europe’s gas need, making it the biggest supplier.
Russia and the European countries need each other more than they want to admit.
It can be argued, Europe needs Russia as the former has