German–Russian gas relations in face of the energy transition

Kirsten Westphal ()
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Kirsten Westphal: German Institute for International and Security Affairs, Berlin, Germany

Russian Journal of Economics, 2020, vol. 6, issue 4, 406-423

Abstract: Russia is the world's largest gas exporter and Germany is its most important market. Moreover, natural gas is a centerpiece of the Russian economy and the backbone of its energy supply to the Russian population. In terms of its external gas relations, Germany has always kept a special and strategic position, both in terms of volumes, but also in substance. This contribution explores the impact of the energy transition on the bilateral gas relationship. It argues that the bilateral gas relationship has been subjected to various paradigm shifts in the past, but, until recently, the relationship has been seen as in line with the strategic energy triangle of climate change/sustainability, supply security and economic competitiveness. This perception has come into question over two issues: climate change and supply security. Moreover, Germany's authority over the conduct and the legal framework of bilateral gas relations has been increasingly contested, by Brussels, but also horizontally by other EU member states. At this stage, it is very uncertain whether both sides will manage to maintain and redefine their close energy partnership to address climate change. Decarbonizing the gas value chain would be a centerpiece. This would require a political shift away from securitization to decarbonization, not only in Germany, but even more so in the EU, and in particular, in Russia.

Keywords: energy; transition; Russia; Germany; natural; gas; decarbonization; hydrogen (search for similar items in EconPapers)
JEL-codes: F52 F64 P18 Q48 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:arh:jrujec:v:6:y:2020:i:4:p:406-423

DOI: 10.32609/j.ruje.6.55478

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