Abstract
This chapter details the main aspects of the EU-Russia energy relations. Although the monograph primarily focuses on the ideological (discursive) level of the energy interactions between the EU and Russia, the importance of the institutional and material (nondiscursive) level of the EU–RF energy relations cannot be wholly ignored in the discussion of this issue. In this context, the chapter is divided into several parts. The first describes the legislative and institutional framework of the energy relations between the EU and Russia. The second and third parts analyse the energy policies of the EU and the RF, with primary attention given to the key actors and the basic goals, instruments, and interests of the EU and RF energy policies. The final section focuses on the Ukrainian crisis in 2014 and its impact on the further development of the energy relations between the EU and Russia.
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Notes
- 1.
The lengthy ratification process was influenced by a number of circumstances. The most important event was the postponement of the EU ratification process due to the first Russian war in Chechnya. The subsequent period of peace in Chechnya allowed the ratification process to resume in 1996.
- 2.
The PCA is a political document, and it is not legally binding. It does not reflect any institutional instruments that would ensure secure supplies of oil and gas from Russia to the EU or which would solve problems between the EU and Russia.
- 3.
Since 2014 discussions in the framework of the formal Energy Dialogue format have been suspended due to the Ukrainian crisis. However, the regular dialogue continued to take place on an ad hoc basis (in the context of, e.g. the trilateral gas talks between Russia, Ukraine, and the EU with the aim to ensure an uninterrupted supply of gas to and through Ukraine, including after 2019).
- 4.
Siloviki is a term used to describe politicians from key ministries, such as the Ministry of Defence and the Ministry of Foreign Affairs, and from security services, such as the Federal Security Service (FSB/FSS), the Federal Protective Service (FPS/FPS), the Foreign Intelligence Service (SVR/FIS), etc. (see Larsson 2006, p. 117).
- 5.
Gazprom has a de iure monopoly on the export of natural gas from Russia since 2006; Europe (i.e. both the EU and non-EU European countries) is practically the only destination for its gas exports (cf. Proedrou 2010).
- 6.
The first and fourth scenarios are mainly practised in policies aimed at countries of the former Soviet Union. Conversely, the second and third scenarios focus on relations between the Russian Federation and selected countries of the European Union, such as France or Germany (Milov 2006).
- 7.
Larsson (2006) outlines several motives that lead the RF to the political use of energy resources: (1) to obtain better prices for oil and gas supplies from its counterparts, (2) to gain control of the distribution infrastructure of other countries’ pipelines, (3) to limit the autonomy and foreign-policy outreach of neighbouring states, and (4) to punish neighbouring countries for any pro-Western tendencies and/or disloyalty to Russia and to force economic concessions from them.
- 8.
Although the composition of the energy mix remains in the hands of member states, it is indirectly impacted by secondary norms such as the Climate and Energy Package or the Third Energy Package.
- 9.
Projects of common European interest focus on electric power grids and gas networks and must show a potential economic viability. The assessment of economic viability is based on the analysis of costs and benefits, which takes account of all costs and benefits related to aspects of environmental protection, security of supplies, and benefits to economic and social cohesion (European Commission n.d.).
- 10.
The EEAS is to cooperate with the diplomatic corps of individual EU member states, the Council of the EU, and the European Commission. Its activity is headed by the High Representative of the Union, and the EEAS further consists of EU Special Representatives, who are based in various regions around the world. The EEAS is coordinated by the Executive Secretary General, the “managing director” of the EEAS. The service also comprises numerous specialised departments for specific issues.
- 11.
However, this proposal met with strong resistance from a number of member states, and so its second and third variants were also proposed. The second variant assumes the creation of an independent system operator (ISO), which would function as a company with a separate ownership operating the transport of energy on another company’s property. The third variant supposes the creation of an independent transport system operator (ITO), which would mean the legal separation of the transport system from energy production (Eikeland 2011).
- 12.
To achieve this aim, the EU is resolved to use legislative instruments against entities that act in contradiction to the principles of liberalisation. One proof of the EC’s will to enforce rules related to the liberalisation of the energy market was the ordering of police raids in late September 2011 in 10 countries of Central and Eastern Europe; the raids were focused on the allegedly unfair business practices of firms providing gas supplies, including subsidiaries of Gazprom. In September 2012 the EC then ordered an investigation of Gazprom due to its possible abuse of its dominant position and its alleged violation of the rules of economic competition in gas markets in Central and Eastern European countries. The European Commission then again accused Gazprom of abusing its dominant position in the market of Central and Eastern European countries in April 2015 (see more Sharples 2015).
- 13.
The crux of the dispute between the two countries was the sum of 16 billion USD, which Ukraine owed Russia. This amount included 11 billion dollars that Russia demanded from Ukraine after the termination of the so-called Kharkiv Pact from April 2010, the repayment of the then recent loan of 3 billion dollars in the form of a Russian purchase of Eurobonds, and roughly 2 billion dollars which Ukraine owed Gazprom for supplies of Russian gas from November 2013 to May 2014 (Sharples 2015).
- 14.
The stress tests were conducted on the basis of two hypothetical situations: a complete interruption of Russian gas exports and a blocking of the Ukraine transit route (Martinez et al. 2015).
- 15.
During the period when Russia interrupted its supplies of gas to Ukraine, there were repeated drops in the volume of Russian gas transported to a number of Central and Eastern European countries (Pirani and Yafimava 2016).
- 16.
Gazprom and Naftogaz had filed suits against each other at the Stockholm Arbitration Institute, which resolves business disputes. It was their second dispute; the court had previously refused Gazprom’s 56 billion-dollar claim against Naftogaz in connection with a take-or-pay clause (Eyl-Mazzega 2018).
- 17.
The importance of Ukraine as a strategic partner for the EU in the field of energy was confirmed on 24 November 2016 by the signing of a new memorandum of understanding at the EU–Ukraine summit in Brussels. Until then EU–Ukrainian energy relations had been governed by a memorandum from 2005. The new document should expand the cooperation into areas including science and research, renewable sources, and efforts to implement low-carbon energy. Apart from that, the EU support for Ukraine after 2014 can also be seen in the continuing reverse supply of natural gas from Slovakia, Poland, and Hungary to Ukraine, which has de facto stopped receiving Russian gas from the east (RT 2017).
- 18.
Another notable critic of the planned Russian–German enterprise is the USA and its president, Donald Trump, who regards the project as dangerous due to how it increases the EU energy dependence on Russian gas—thus the USA offers to increase the volume of its LNG supplies to Europe.
- 19.
On 24 May 2018, “the European Commission has adopted a decision imposing on Gazprom a set of obligations that address the Commission’s competition concerns and enable the free flow of gas at competitive prices in Central and Eastern European gas markets, to the benefit of European consumers and businesses” (European Commission 2018).
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Tichý, L. (2019). Energy Relations Between the EU and Russia. In: EU-Russia Energy Relations. Springer, Cham. https://doi.org/10.1007/978-3-030-04107-6_2
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