Russia's and the European Union's Gas Interdependence - What balance between the market and geopolitics [L'interdépendence gazière de la Russie et de l'Union Européenne - Quel équilibre entre le marché et la géopolitique?]

D. Finon
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D. Finon: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: The purpose of this paper is to review the interdepedence relationship between Russia and the European Union in the area of gas, by distinguishing the Russian seller's power risk from the issue of short term security, which are often mistaken one for the other. The goal is to measure the economic risk associated with the seller's dominant position in the European market to appreciate the relavance of responses that can be made by European countries or the European Union. Firstly, the basically different nature of Russia and of the European Union is described, as well as the role played by its energy resources in the assertion of Russia's political power. Secondary there is an analysis of the Russian seller's elements of dependence on the European market, before reviewing, thirdly, the risk of exercising Gazprom's market power in Europe. In closing is a review of the relevance of possible actions by the European Union and member countries to reduce that risk by facilitating the densification of the Paneuropean Network, the establishment of entry points and market integration.

Date: 2006
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Published in 2006, pp.373

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00716792

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