Analysis of EU-Russia Energy Interdependence: Dissertation Discussion

This dissertation chapter delves into the critical EU-Russia energy relationship, examining the interdependence between the two entities, particularly concerning natural gas. It explores the historical context, including the Partnership and Cooperation Agreement (PCA), and analyzes the concept of interdependence as an analytical tool, considering both positive and negative dimensions. The discussion covers energy security concerns, the impact of gas crises, and the evolving dynamics of their cooperation. The chapter also assesses the legal frameworks and political factors influencing their energy trade, highlighting the strategic importance of Russia as a key energy supplier for the EU. It also explores the different dimensions of interdependence, including the positive and negative aspects of their relationship, with the aim of providing a comprehensive understanding of the complexities and challenges in this vital energy partnership.

DISSERTATION
CHAPTER - DISCUSSION

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
At present scenario the natural gas is playing one of the major aspects of energy source in
EU. It has become very essential for countries to take in consideration about the saving and
protecting the energy source so that they can be able to perform operations of nation in
appropriate and effective manner 1. It is also very essential for them to have a proper
coordination with Russia as because they both are very effectively carrying out a relationship in
this particular industry. In past decades, EU and Russia are having a very good relationship in
deals and transactions of political and monetary interest. They are bound together by their
property arranging and for the most part made relations. Trade relations between the two
economies have been becoming impressively completed.
At present, EU's key trading associates is Russia. Perceiving that it as a strategic partner
it was believed that it is using its potential and capacity as a mean to ensure European security.
In 2013 items tolls to Russia indicated 120 billion EURO. There is no other filed where a bond
can be seen between them as strong they are having in cooperation of energy. After collapse of
Soviet Union it has started performing its activities in international market. So that they can be
able to develop its economy and standard of living of people in better and improved manner2. It
should be considered that what all are security dilemmas that has to taken in notice that can be
applied to preserve natural gas of country. As the crises of the gas that took place in 2006 and
2009 with Russia and Ukraine, it was seen that there were many problems that took place due to
cut-offs in gas serving to EU. Many countries of it suffered because of shortage of the natural
fuel and gases. It that time got realised by EU that there should be a need of security for the
natural gases and the entire crises took place due to dependency upon Russia.
This EU-Russia essentialness association will shape the subject of study. It is however a
genuinely wide subject, which is to wide to cover totally. Consequently this has restricted the
augmentation of my examination in two ways. Immediately, the study will focus on the
essentialness association in gas sector. There are a couple of specific challenges stood up to this
1 Belyi AV. The Europeanization of Energy Policies and Its Impact on EU-Russia
Relations. InTransnational Gas Markets and Euro-Russian Energy Relations 2015 (pp.
103-133). Palgrave Macmillan UK.
2 Codoban A. The European Union's Quest for Energy Policy: A Geo-Economic
Approach. Romanian J. Eur. Aff.. 2011;11:38.
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sector which makes it a distress motivation behind the EU-Russia relation. It is depicted by
various issues and conflicts which hamper authentic progression of joint effort and negative
impact affect whole EU-Russia relationship. This study will also focus upon legal aspects of
their relationship to carry out all its operations and functions cooperative and coordinate manner.
Here discussions will be carried upon the aspects that there are many who believes that EU is not
much reliable on the decisions and strategies of Russia whereas there are also some critics who
stated that at present EU is not much depended upon plans and advices of Russia3. Concept of
interdependence being an analytical tools, positive and negative dimensions of interdependence,
EU-Russia gas interdependence, energy security all these are some of major aspects upon which
the Dissertation discussion will be performed so that a proper understanding of legislations that
are required to preserve the natural gases and energy can be performed.
MAIN BODY
Concept of interdependence as an analytical tool
According to Eriksen 2016 4, After the cold war, the military and governing authorities
of nation came to know that weapons and arms are not only required by the country it is also
very essential for the nation to focus upon new trends and technologies that can help in leading
in developing and strengthening economies. This is very essential for country to take in
consideration about the other aspects that can lead in attaining sustainable growth of the entire
economy. This is on of concept through which power of the nation can be re-evaluated as
because use of weapon is not only the best measure that EU can use, there are many more
elements that has to be focused so that crises and shortcomings of natural gases and energies can
be secured effectively and appropriately. Globalisation and chaptalisation is also an important
factor at present time that need to be focused so that economy can be developed and self reliance
can be done. There are basically two major conditions according to which the country can be
able to develop its wealth situation that is dependences and interdependence.
3 Ebinger C, Massy K, Avasarala G. Liquid Markets: Assessing the Case for US Exports
of Liquefied Natural Gas. Policy. 2012 May.
4 Eriksen M. ASSESSING RUSSIA'S DOCTRINE OF REALPOLITIK AS STRATEGIC
RE! CONTOURING OF REGIONAL POWER-BALANCE IN THE POST-SOVIET
PERIPHERY. Politeja. 2016 Jan 1(41):305.
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As per Gupta 2012 5, interdependency is the concept that are used to interpret the
emerging issues of conflicts for the purpose of international trading and cooperation. It can be
said as the trans boundary movement of the goods, services, financial resources, informations
and human resources. It is a situation where the one is depended upon other for several aspects.
Due to poverty issues regarding energy gases EU need to collaborate with Russia so that they can
be able to get the aids and benefits regarding natural gases. EU depends upon the external
suppliers for the natural energy about 50% and 64% natural gases are imported. It is also
expected that the import procedure will more get increased in upcoming time. As per the study it
has been analysed that by 2030, it need to import around 84% natural gases from other nations
who are having this energy comparatively more that EU nations. It is not necessary to say that
interdependence is one of the mutual advantage, but it most of the time deals with the costs
which is one of the major and very sensitive aspects.
Partnership and Cooperation Agreement (PCA)
Straight up till today, complementary relationship among Russia and the EU is spoken to
by the EU-Russia Affiliation(Partnership) and Cooperation Agreement (PCA). The contract was
done up in June 1994 and gone into oblige on 1 December 1997. PCA was at first completed up
for the season of 10 years. By integrity of workmanship. 106 in any case, after this basic period
has passed the comprehension is thusly extended unless condemned by one of the social affairs.
Objectives of this assertion keep running from cementing dominant part governs framework and
social interest to redesign of sorted out business and advance of the Russian economy to the
market-based structure (craftsmanship. 1 PCA). Despite monstrosity of the cooperation between
the social occasions in the field of essentialness, the PCA does not contain ordered courses of
action on essentialness. Only a solitary course of action especially tends to essentialness,
specifically article 65 of the PCA.
These insufficiencies have been seen by both Russia and the EU. Starting at now in 1999
Russia requested on supplanting current out of date PCA with another framework understanding.
Moreover EU saw the need for modernizing its association with Russia. The underlying stage
5 Gupta J. Global energy governance in the twenty-first century: challenges and
opportunities. Secure oil and alternative energy: the geopolitics of energy paths of China
and the European Union. Brill, Leiden, The Netherlands. http://dx. doi.
org/10.1163/9789004233324_015. 2012 Jun 12:427-48.
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toward this way was taken by getting the four Typical Spaces Agenda. One of the four spaces,
the Common Economic Space, looks to i.e. Join Russian and EU imperativeness markets. These
Common Spaces were also supplemented by the Partnership for Modernization. However, these
are political rather than legitimate records, which without any other individual's info hold little
significance. This suggests the forceful investment in the essentialness field set out in these
chronicles ought to be executed by exemplary nature of a coupling legal contract. Adjacent
accepting four Common Spaces, EU made plans to grasp an invigorated honest to goodness
framework that would supplant the current PCA and complete the Common Spaces. In May
2006, EU and Russia agreed to develop another honest to goodness structure, which would join a
sweeping imperativeness part. On account of political inconveniences official courses of action
just started in December 2008.
Referred by Kaminska 20146, this situation creates a state where Russia will become
more powerful as because there are many countries which is lying in European Union so for all
of them natural gases are very essential hence it will lead Russia to reach at a higher level and its
power will also get increased. It has been also analysed that EU have to be depended upon
Russia for future aspects also as because there is no such other options for having the natural
gases to fulfil their need and wants. It is been identified that impact of the interdependent
countries will involves in various expenses ans cost along with that there are many benefits as
well. It is very essential to have a plan so that operations can be functioned in appropriate
manner. The interdependency has now seems to be reduced as because Russia is at present facing
the shortage of natural gases, thus it is also reduced the sharing of oil and gases to EU company
in a very restricted and limited manner. It has affected the relationship of both the nation as many
EU countries got affected very badly due to the crises of these energy that has took place in 2006
and 2009. this situation can be analysed as the relationship between both the nation and its
interdependency upon each other.
6 Kaminska J. Shaping EU Policy Toward Russia? The Veto Case. InPoland and EU
Enlargement 2014 (pp. 105-139). Palgrave Macmillan US.
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According to Kulkarni & Nathan 20167, the asymmetric interdependence of both the
nation varies from nation to nation. It is definitely not hard to grasp the foreign policies the EU
was a strong supporter of Russia's advancement to the WTO, from the most punctual beginning
stage of the course of action strategy the separation to the genuine increment of August 22nd,
2012. The EU's assistance all through the entire strategy of Russia's WTO advancement
addressed a fundamental target to fulfil for the EU, in order to make and fortify its money related
relations with the alliance. By and large, the central excitement of the union in Russia's WTO
increment was to shield it from accepting uneven expense systems as it was the circumstance
some time recently.
In this interesting circumstance and with such a starting stage, we could express that the
European Union and the Russian Federation are decidedly associated on political, social and
7 Kulkarni SS, Nathan HS. The elephant and the tiger: Energy security, geopolitics, and
national strategy in China and India’s cross border gas pipelines. Energy Research &
Social Science. 2016 Jan 31;11:183-94.
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budgetary establishments. A gander at the guide of the world is adequate to appreciate that
Russia and the EU share security interests and an basic general neighbourhood and in this way
have only a solitary choice in the current all inclusive, multipolar and globalized condition - to
moreover develop their affiliation. Such an approach on the relations between the EU and Russia
relies upon two essential disputes: the"closeness" and "basic" of their associations.
Two dimensions of interdependence
View point of Kuzemko 2013 8,interdependence basically is having two major approaches
and dimensions, it is not necessary that interdependence is only for the purpose of positive aspect
there are chances where for personal benefits it can be performed it may be in negative manner
as well. Positive dependence is a part of supportive and group arranged acknowledging where
people from a social occasion who share similar goals see that coordinating is solely and all
things considered profitable, and accomplishment depends upon the venture of the impressive
number of people. It is the situation where both the nations are in a state where they both are
very much satisfied in the mutual interdependence. This is the circumstance where EU and
Russia being an interdependent nations they are having a very positive understanding and
intellectual aspects for their trading system.
As per Lee & Connolly 20169, this positive interdependence approach is very effective
and the values are shared in a positive manner. Both the nation are very much happy with the
trading activities and operations and functions that are performed in terms of the gases and
natural energies that are very much required by both the nations. They are also practising the
similar kind of actions and strategies are also used in mostly same manner. Russia has been said
as the strategic partner which is providing several strategies that are very much suitable for
nation to perform. The problems that are faced by EU has been resolved by Russia's support this
lead both to collaborate and work together. Similarly the economy is not much stable of Russia
hence the support of EU has helped nation to cope up with the economical barriers and problems
which was affecting it. Russia is having the world's largest portion of reserves of natural gases
and energy and EU economy is quite good so this lead to the situation where both the nation get
8 Kuzemko C. The Energy Security-Climate Nexus: UK and Beyond. InThe Energy
Security-Climate Nexus 2013 (pp. 171-196). Palgrave Macmillan UK.
9 Lee JS, Connolly D. Pipeline Politics between Europe and Russia. The Korean Journal
of International Studies. 2016 Apr;14(1):105-29.
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together and started cooperating with each other that had created a positive interdependence
situation.
The EU-Russia Energy Dialogue
As asserted by Makarychev 201310, PCA did not suit an acceptable instrument for the
EU-Russia essentialness association. Social occasions soon saw a necessity for a more extensive
approach. Therefore, at the sixth EU-Russia Summit in 2000, the EU-Russia Energy Dialogue
was set up. This Dialogue gone for giving steadfast quality, security and consistency to the EU-
Russia essentialness relations. This would be expert by working up a social affair where all
issues of shared stress in the imperativeness section (gas, control, nuclear sections) could be
tended to. Relationship of the Energy Dialogue had been modified distinctive conditions every
through it reality. At first it relied upon three working levels.
The Permanent Partnership Council worked at the most raised sum and contained Russian
imperativeness serve, EU Energy Commissioner and two Member State Energy Ministers. At the
political level, general contacts were kept up between the Facilitators from the two sides. The
principle part of the work was done inside different Thematic Social affairs. Also these Groups
encountered a couple of changes. At the present moment the Trade is revamped in two essential
topical get-together, to be particular: Thematic Group on Energy Markets also, Strategies and
Thematic Group on Energy Efficiency and Innovation.
As asserted by Makarychev 201311, Negative interdependence is a sort of association
between social on-screen characters where there is an adverse relationship among individuals'
goal achievements, individuals see that they can get their targets if interchange individuals with
whom they are strongly associated disregard to procure their destinations. Negative
interdependencies are zero or negative aggregate redirections, which implies the whole part may
get smaller through the association. As Russia is owing a very large part of the gas and natural
energy reserve many other countries which is not having the appropriate aid of gases is dealing
10 Makarychev A. Inside Russia’s foreign policy theorizing: A conceptual conundrum.
Debatte: Journal of Contemporary Central and Eastern Europe. 2013 Dec 1;21(2-3):237-
58.
11 Makarychev A. Inside Russia’s foreign policy theorizing: A conceptual conundrum.
Debatte: Journal of Contemporary Central and Eastern Europe. 2013 Dec 1;21(2-3):237-
58.
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with Russia. The most important field of gas that it is holding altogether is accounted as 60% of
its total production of the natural energies. It has been slowly getting depleted which is leading to
the state where it need to stop or to restrict the dealing and export of oils and natural gases to
other nations especially European Unions. This cut-offs of the gases has created a very bad
situation to EU in 2006 and 2009, it was in a crises state. Where it need to suffer for the oils and
natural gases as that was the essential needs of each and every individual. This is a circumstance
where the negative interdependence can be quoted.
As per Nau & Ollapally 201212, Russia has now restricted the export of the gases to other
nations and has also limited the rates of exchanges that were made earlier for the gases and
natural energies this has affected the relationship of Russia and EU and may in future lead to a
conflict situation as well. It is not necessary that such situation may take place there are chances
where a cooperative actions will implemented where both can carry out their trading
appropriately. It has been upheld by the conflict (as per a third strand of makers) that gas
relations between the EU and Russia are not bolstered by the EU dependence on Russia, yet by a
strong interdependency, and along these lines ought to qualify a bit of the doom sayer affinities
which have formed European open thoughts about essentialness support with Russia.
According to Sakwa R.201513, this situation leads to a very negative interdependence,
where nation is the dependent upon each other, but they are not having a good and positive bonds
and relationship with each other and the decisions that are taken by them are also not happening
to both of the countries are not satisfied with the decisions and plans that are made by them for
their operations and managements. It is very hard to describe the relationship between both the
nations as many issues and positive aspects are there which is uplifting each others economy as
well as some issues are influencing the strong relation of both. It can also be said that there are
situation where Russia may replace Europe but the situation is not in the favour as because it is
not easy to do so as because, they are having a very strong and a very big exchange of markets
where they were trading many things. So it is not a simple works large portion of exports of
natural gases are performed and carried out with Russia.
12 Nau HR, Ollapally D, editors. Worldviews of aspiring powers: domestic foreign policy
debates in China, India, Iran, Japan and Russia. Oxford University Press; 2012 Oct 18.
13 Sakwa R. Eurasian Integration: A Project for the 21st Century?. InThe Eurasian Project
and Europe 2015 (pp. 53-71). Palgrave Macmillan UK.
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EU-Russia gas interdependence
Asserted by Stefanovska 2011-1514, energy security is one of the major aspect that need
to be concerned by a country as because at present era the significance of safety and security for
the natural gases is very high. It is very necessary as because there are many risk factors that are
affecting the supply of natural gases. Basically there are two most important factors that is
having a very direct connection with the supply of the energies by one country to other that is
internal and external factors. Internal factors that are influencing and act as the risk aspect in
supply of natural gases are energy demand, elaboration of institution, infrastructure and energy
policies. External risk factors that influence supply of gases and natural energy are the technical,
political, economical, geological and environmental risk. These aspects has to be considered by a
nation to protect and avail security to the supplying process of natural gases.
Energy Charter Treaty
According to Tulmets 201415, this is one of an agreement that is dealing with the
situations of energy and natural gases. It basically represents the regime which is related to the
trading and transition of the energy. Its scope has been considered with investment protection
and geopolitical scope. The main objective of introducing this is to create a cooperative situation
between energy sectors of EU and Soviet Union nations. For east side it was a revolution
towards the economic market transitions whereas in West, they were very happily enjoying the
supply of all these energies from East zone. In 1990, the political initiation was taken which lead
to establishment of the international cooperation in energy sector. This regime was also
introduced so that the dispute can be resolved and with this healthy relationship can be
maintained within the countries which is dealing in the energy and natural gases.
14 Stefanovska M. The Lisbon Treaty and EU External Trade Policy: Should Western
Balkan Countries Take It into Consideration?. University American College Skopje.
2011;15(2):115-33.
15 Tulmets E. East Central European Foreign Policy Identity in Perspective. Back to
Europe and EU’s Neighborhood (Hampshire-New York: Palgrave Macmillan, 2014).
2014 Jul;22.
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According to Tulmets 201416, Russia is the greatest oil, gas, uranium and coal exporter to
the EU. In like way, the EU by far the greatest trade associate of the Russian Federation. In
perspective of this common interdependency and essential excitement for the imperativeness
range, the EU and Russia developed an adjacent essentialness association and impelled an EU-
Russia Energy Dialogue in 2000. The EU is set up to team up with Russia in also developing
different fundamental market measures in the imperativeness fragment, for instance, an
essentialness capability and saving game plan, wander help and confirmation, the benefit of
access to imperativeness transport structure, sort out heads' independence from the regular
forcing plan of action producers, range control, and change of syndications. An Energy Dialogue
stays a champion among most essential parts of interest among Russia and European Union.
As per Vanaik 2013.17., its present structure ensures the close-by commitment of EU
Member States, the European essentialness industry and worldwide financial establishments.
Topical working social occasions join more than 100 European and Russian pros from the
private and academic parts and the associations to discuss hypotheses, structures, trade and
essentialness profitability issues and to design propel suggestion for the Energy Dialogue. These
authorities have underlined the noteworthiness of tackling the converging of managerial
structures in the EU and Russia, on the continued with progression of a charming, unfaltering
and obvious wander environment that allows a dynamic part for outside examiners, on the oil
and gas transportation system wanders and the joining of energy markets.
Contrast to Virta & Shayan 201218, Due to the depletion in the gases in Russia it is very
essential for both the nation to take several actions that can be supporting both to sustain in
competitive world and to fulfil their own needs for the development of economies and for its
stability. It has become very must for them to plan and make strategies so that their natural
resources can be preserved and provide security so that they can be able to use them at times of
crises as well. It is also very essential for them to make several policies. The major issue that are
16 Tulmets E. East Central European Foreign Policy Identity in Perspective. Back to
Europe and EU’s Neighborhood (Hampshire-New York: Palgrave Macmillan, 2014).
2014 Jul;22.
17 Vanaik A. Capitalist Globalisation and the Problem of Stability: enter the new quintet
and other emerging powers. Third World Quarterly. 2013 Mar 1;34(2):194-213.
18 Virta S, Shayan F. 1. Rajaton turvallisuus? Any Limits to Security?.
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