EU-Russia Gas Relations: A Fresh Start in the Offing?

Strategic Insights -

The European Union's imports of Russian gas will be closely watched, particularly as Vladimir Putin prioritizes the future status of state-controlled Gazprom. With a keen interest in the UK, the EU's poor record in encouraging Russian gas industry reform is evident, including tackling energy links with Russia. The emergence of north-east Asia as an alternative market for Russian gas underscores the significance of this relationship for the EU. Amidst the renewed importance of EU-Russia gas relations, the time may be ripe for a fresh start.

Key Takeaways:

  • The European Union takes approximately 41% of its imported gas from Russia, making EU-Russia gas relations a vital aspect of the EU's energy security.
  • The EU has had limited success in encouraging reform of Russia's gas industry and tackling issues related to energy links with Russia.
  • The Commission's multi-stakeholder forum approach, involving industry, governments, and regulators, has shown promise in the single market programme and could be applied to EU-Russia relations.
  • Including Gazprom, Russian gas industry representatives, and EU-based gas companies in a multi-stakeholder forum could provide a platform for progress on long-standing issues.
  • The benefits of promoting a dialogue between Russia and the EU on gas industry reform are clear, with potential gains for both parties, while failure would have negative consequences.
  • The Commission should consider extending the multi-stakeholder forum approach to EU-Russia gas relations, leveraging the success of this model in the single market programme.

Statistics:

  • 41%: The percentage of the European Union's imported gas that comes from Russia (source: original text)
  • Twice-yearly: The frequency of multi-stakeholder forum meetings between industry, governments, and regulators in the single market programme (source: original text)
  • Clear benefits: The advantages of promoting a dialogue between Russia and the EU on gas industry reform, as mentioned in the original text

Sources:

  • "Four more years: but will Putin's desire for a strong state hamper economic reform?" by Sir Peter Cameron, Comment & Analysis, March 17 (source: original text)