This books analyses how transnational gas markets have evolved and impacted on EU-Russia energy relations. It examines how the political conflict surrounding Ukraine has accelerated a negative interdependence in the region, with energy interdependence increasingly used as an instrument of diplomacy.

Public debate about energy relations between the EU and Russia is distorted. These distortions present considerable obstacles to the development of true partnership. At the core of the conflict is a struggle for resource rents between energy producing, energy consuming and transit countries. Supposed secondary aspects, however, are also of great importance. They comprise of geopolitics, market access, economic development and state sovereignty. The European Union, having engaged in energy market liberalisation, faces a widening gap between declining domestic resources and continuously growing energy demand. Diverse interests inside the EU prevent the definition of a coherent and respected energy policy. Russia, for its part, is no longer willing to subsidise its neighbouring economies by cheap energy exports. The Russian government engages in assertive policies pursuing Russian interests. In so far, it opts for a different globalisation approach, refusing the role of mere energy exporter. In view of the intensifying struggle for global resources, Russia, with its large energy potential, appears to be a very favourable option for European energy supplies, if not the best one. However, several outcomes of the strategic game between the two partners can be imagined. Engaging in non-cooperative strategies will in the end leave all stakeholders worse-off. The European Union should therefore concentrate on securing its partnership with Russia instead of damaging it. Stable cooperation would need the acceptance that the partner may pursue his own goals, which might be different from one’s own interests. The question is, how can a sustainable compromise be found? This thesis finds that a mix of continued dialogue, a tit for tat approach bolstered by an international institutional framework and increased integration efforts appears as a preferable solution.

The publication comprises 15 contributions by leading academics, lawyers and policy specialists offering a deep analysis of the relationship between Russia and the EU in the energy sphere. The political aspects of the EU-Russia relations are discussed by some of the leading practitioners and academics in the field. With Russia being the single most important energy supplier for the European Union, the security of supply issue inevitably hinges to a large extent on the complex relationship between Brussels and the Kremlin. The events following the most recent disruption of gas supply from Ukraine in 2009 is evidence of the fragile political interrelation between the EU and Russia and it is not surprising that speculation about the future of Russian energy supplies to the EU keeps growing. The publication is divided into 3 sections with various chapters: Section I : Political Energy Relations Between EU and Russia; Section II: Legal Aspects of EU - Russia Energy Relations; Section III: Changing the Rules for the EU Natural Gas Markets - From State to Market and Plan to Contract.

EU-Russian energy dialogue represents a policy issue that forces us to take a serious look at several crucial questions related to the present and future of Europe such as: how can the EU area ensure its future energy security when it is running out of its own energy resources and at the same time incorporating new members who are also dependent on energy imports? This book not only outlines the overall characteristics of the energy dialogue, but also illustrates the involved policy implementation challenges by paying special attention to the regional context of northern Europe. The study contributes to diverse fields such as international relations and political science, European studies, studies on energy politics, international political economy, post-Soviet politics, and literature on regionalization and regionalisms, with a special reference to northern Europe.

Due to the exploitation of international reservoirs, natural energy sources have become rare, disputed among States and therefore strategic. The reliance on these resources is linked to energy security and dependence in both terms of energy imports or exports. Furthermore, the access and reallocation of energy flows entail an alteration of the balance of power among States as well as the raise of national energy security strategies and debates. The aim of this volume is to analyze the evolution of energy relations between the European Union and the Russian Federation from a state of pure Dependence to the establishment of a balanced Interdependence, underling also the challenges facing the EU in terms of dependence and diversifications in the framework or the EU-Russian energy cooperation.

This book presents the main conclusions reached by the academic project "Geopolitics of Gas and the Future of the Euro-Russian Relations (Geo4GER)." This project is being developed at IPRI -- Portuguese Institute of International Relations, NOVA University, an academic research institute dedicated to advanced studies in Political Science and International Relations, of NOVA University of Lisbon, Portugal. Energy security is a key issue on the international political agenda, a prerequisite for political stability and economic development and an indivisible part of a state's overall security. For Europe, the high-energy insufficiency is a major challenge, given its dependence on external sources, especially from Russia, the lack of diversification of energy sources, and the poor branch of its transmission network. For Russia, energy has been a geopolitical factor of power and a potential strategic vector to its re-emergence as a great power in the international system. However, in terms of energy, Russia also faces some long-term challenges, given the fall of its production and the low competitiveness of its gas, which is currently saved from the market where competition can hardly enter. Given this scenario, and also the increasingly important role in the political and strategic discussion of energy issues between Europe and Russia, it becomes relevant to diagnose the past and the present to forecast the medium and long term future (2030), taking into account the expected changes in the geopolitical and energetic environment, and the characteristics and dynamics of European-Russian relationship, including its energy interdependence and the energy policies and strategies outlined by Europe and Russia.