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.
3

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.
5

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.
6

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.
9

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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faced by the nation is the imperfect distribution of the security. It is very must that demand and
supply has to be performed in an effective and appropriate manner. With the help of supporting
security system the nation can be able to develop a healthy economy and can be able to serve the
natural resources especially the gases and energies in most effective and proper way.
According to White, Lewis and Batt 2013 19, it is very essential to distribute the security
system of supply as well and the demand of natural energies in such a way so that countries can
be able to attain the availability, affordability, accessibility and acceptability of the secured plan
that has been introduced and implemented by the nation's governing authority. Concerning oil
gas and, particularly, the EU's dependence on Russia, the threats related to import dependence
can be brought down through a couple of general, comprehensively known (level) measures.
Close by the vastest possible expanding by locale or fuel, these threats moreover incorporate
limit requirements, regular solidarity, and the change of LNG. In voyage of enhancing security
and giving more unmistakable flexibility inside the gas markets, such measures as framework
upgrade and utilitarian change of inside gas markets should be taken.
European Energy Security
Energy security is an issue which attract the political and national interest from long time.
This is the problem which is faced in every developing countries and developed countries too.
The different states and countries are being involved in development of good energy relationship
with each other. Europe is continuously concussing upon the natural resources of energy present
in states and how to fulfil huge demand of gas in the country. According to Yafimava (2011) an
analysis data of Mediterranean affairs is highlighting over energy security issues and problems in
Europe20. This is vital challenge for the European countries is to manage their energy sources
effectively in order to develop economically as well as politically in world. This can provide an
huge power to European countries and can represent as an powerful country of world among
other. This is the main reason behind the constant efforts of EU for resolving the energy security
issues in country which can helps in increasing the economical strength of nation in many fold.
The EU government is continuously adopting various new legislation and political policies in
19 White S, Lewis PG, Batt J, editors. Developments in Central and East European Politics
5. Palgrave Macmillan; 2013 Aug 30.
20 Yafimava K. The transit dimension of EU energy security: Russian gas transit across
Ukraine, Belarus, and Moldova. OUP Catalogue. 2011.
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order to deal with the gas related issues and foreign relationships with other neighbouring
countries to establishing good energy relations with Russia etc.
The significant role of EU government can be seen through Third Energy Package and
Energy security strategy which can be helpful in dealing effectively with the gas resources and
gas related problems in environment. Other initiation of government to resolve the problems of
gas and energy sources is construction of gas pipeline of Second Nord Stream Offshore pipeline
which connects Russia directly with Germany and helps in direct supply of gas from Russia
through developing an good relationship in countries. This decision was good for economical
and commercial growth but it creates an question mark to the energy security of Europe. The EU
country is continuously engaged in reducing the demand of energy and increasing the energy
production through developing renewable energy methods in practice, bringing diversification in
energy suppliers, sources and energy routes. According to Łoskot-Strachota and Zachmann
(2014) while working in accordance with the target of country from Green Paper 2000, the EU is
developing long term, strategies in the relation with securing energy flow in country21. This can
be achieved through developing an efficient plan of Supply security of energy in country which
will helps in growth of energy, this will be for well being of citizen of European countries and
also make uninterpreted physical availability of energy in states. The component which defines
the security to the supply of energy in European provinces are technical and commercial. The
technical component of security of energy respond to the accessibility of the gas resources in
country and the energy follow in the states of EU should not be interpreted by other factors and
supply of energy should be continuous in country in order to accomplish high demand of gas
among citizens of country. As stated by Grigas (2012) commercial component of the energy
security is dependent upon the affordability and the prices of the gas in country, thus largely
affects the security of gas as the rates of energy sources in Europe is higher this will need higher
security to protect all the resources of gas effectively in country22. The affordable prices also
largely affects the purchase and availability of the gas in states of EU. So, the government of
European union is continuously engaged in various controlling activities to the technical and
21 Łoskot-Strachota A, Zachmann G. Rebalancing the EU-Russia-Ukraine gas relationship.
Bruegel Policy Contribution; 2014.
22 Grigas A. The Gas Relationship between the Baltic States and Russia–politics and
commercial realities. 2012.
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economical component of energy security in practice. Amsterdam treaty in 1997 leads to an
sustainable development of energy security in country which concluded to the growth in supply
of gas in Europe. The sustainable security policy of energy is dealing with the managing supply
of available resources of gas, also making availability of large number of sources of energy from
renewable production of energy in country and also leads to the installation of the different
approaches to the security of energy in provinces of country.
Prosperity of EU lies in the security, stability and sufficient supply of energy in the
country which is good for well being of citizens and also good for the commercial growth in
country which give various powers to the states of Europe. As stated by Casier (2011) influences
of this respective crisis and they are getting continuous supply of basic fuel used in daily life 23.
This is an testimonial proof to the member states of country that their will never affected by the
energy crisis in the environment. The energy in Member states of European country is available
“On tap” which may be an UN-intrusive decision for country as this will leads to sacristy if
energy resources as the people will not be are about the negative consequences of over
exploitation of every available energy resource in future. In 2006 and 2009 winters the citizen
are facing an disruption in supply of gas which strongly affects the Member sates citizen of
country in many folds. This was an initial wakeup call for both the citizen and the country to
make an appropriate action while dealing with the energy. This should be followed with an
responsible behaviour towards the energy sources of country in order tor secure the gas and
resolve various gas related issues within in promises of country as well as within the relationship
with other countries. The government is engaged in developing various action plan related to
security of energy in EU like diversifying the suppliers, regulating the use of energy by the the
citizen of member states and strengthening the infrastructure used in reduction of energy as well
as securing the huge availability of energy sources in the state provinces in order to bring
security in the operation of energy protection by the regulatory bodies of EU. According to Nick
and Thoenes (2014) the short term objective for the government in maintaining an security of
energy in country can be distribution of different suppliers of gas, resilience form the external
shocks24. While development of interdependency on the specific and particular energy sources
23 Casier T. The rise of energy to the top of the EU-Russia agenda: from interdependence to
dependence?. Geopolitics. 2011 Jul 1;16(3):536-52.
13

along with an getting supply from certain suppliers can be termed as long term goals of an
security strategy of energy driven by government.
The current position of energy security initiation of government in European country-
The current scenario of EU states that country is focusing upon the development of
various renewable sources of energy in country in order to get ready for future scarcity of fossils
fuels in the world. This will helps in dealing with the low availability of sources if gas in country
and this the respective renewable sources of energy sources will be able to continuous supply of
gas among citizen of country. The development of renewable resource in the environment of EU
will helps in achieving the two goals of security of energy simultaneously. One of these goals is
reducing the dependency over the fossil fuel which is imported from other countries. Another
objective of securing the energy resources in European country through constructing renewable
resources is that this will helpful in dealing with the challenge of climatic changes in EU 2020,
this was the most recent allegiance which is agreed in Paris. As stated by Sherr (2010) the most
affordable the most valuable sources of energy in the European country is nuclear power plan 25.
This is an huge source of fuel energy for the country and is also and renewable resource of
energy which doesn't not need to be dependent from other foreign countries and is not affecting
the changing environment also. So, this the ultimate renewable energy approach that can help the
government in achieving all the gaols of securing energy in EU confidently. The European
country is dependent upon the gas reserves from the Moscow to about more than 90% which
highly effects the security of energy in the country.
The climatic environment and higher temperature in the country like Italy will largely
affects the needed of imported gas from the Russia. In new year the first day of years are getting
higher amount of gas from the Russian country. Another reason for the need of foreign import of
gas is the lower supply from the America to European countries. Qatar is also reduces their
export of gas to the European country which also increase the dependency of EU to the Russia
gas resources. As stated by Haukkala (2015) the Eastern Mediterranean gas reserves is serving
gas to the different countries like Europe, Russia, middle east, turkey and northern America but
24 Nick S, Thoenes S. What drives natural gas prices?—A structural VAR approach. Energy
Economics. 2014 Sep 30;45:517-27.
25 Sherr J. The Russia–EU Energy Relationship: Getting it Right. The International
Spectator. 2010 Jun 1;45(2):55-68.
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this is also far behind to accomplish all the demands of energy in these respective countries 26.
The Sonatrach an company owned by state of Algeria which doubled its supply of gas to Italy in
2016 as compared to the amount exported in 2015.
Euratom is targeting to more 100 new stations commissioned by 2050-
Nuclear power is an great source of renewable energy for the countries in world. This is
able to accomplish all large amount of demand of citizen and countries both in the environment
and this also not negatively effect on the environmental and climates of country. Europe is
engaged in increasing the nuclear plants in they country in order to accomplish an large amount
of need of fuel resource. This helps in strengthening the economy of country as well as provide
some extraordinary power in the world developing as an dominant and major source of
renewable energy source. As stated by Stern (2010) around 25% of the total energy in Europe
comes from the nuclear power plants established in the EU 27. In today working environment
their is around 132 reactors constructed in Europe which are working, from which 52 are situated
in France only. Europe is an nuclear power leading country with having major nuclear plants in
different countries like UK, Finland, Hungary. The country is countlessly planning to increase
these numbers of nuclear plant in many folds. The IEA i.e. International energy Agency is
reported that about 704 dollar is invested in between the 2015 to 12016 year in European nuclear
power establishment. This is an huge amount from which it can be analysed that the nuclear
plants are highly valuable for the European gas security and energy resources in country.
Euratom is aiming to establish about more than 200 nuclear station till 2050 in Europe which
will able to fulfil huge demand of energy in country. Along with the use of Uranium in the
nuclear plant has increase efficiency of these stations in energy production in many folds which
26 Haukkala H. From cooperative to contested Europe? The conflict in Ukraine as a
culmination of a long-term crisis in EU–Russia relations. Journal of Contemporary European
Studies. 2015 Jan 2;23(1):25-40.
27 Stern J. The April 2010 Russo-Ukrainian gas agreement and its implications for Europe.
2010.
Papava V, Tokmazishvili M. Russian Energy Politics and the EU: how to Change the
Paradigm.
Yafimava K. The June 2010 Russian-Belarusian Gas Transit Dispute: a surprise that was
to be expected. 2010.
15

is very much valuable resources of the gas need in EU. This is established in some which is
dealing with the production of energy and fuel from the Uranium in their established nuclear
stations. The development of decarbonised energy resources is an new trending which is
flourishing in the country of Europe. This will helps incriminating the efficiently of energy
plants established in the EU. This helps in production of increased the energy sources in country.
This an important aspects fro the fulfilment of high demand of gas in country. As stated by
Papava and Tokmazishvili MYafimava (2010) the countries of European members are largely
following this trending concept of energy resourcing of decarbonised gas in countries which is
having existing plants to replace and the countries like Germany, Sweden, Netherlands and
Switzerland which are not having this kind of plants are constructing new nuclear plans with
decarbonised energy sources members states like Ireland, Denmark, Norway 28.
Reluctant country which provides higher autonomy in EU-
Security to the supply of the energy is necessarily to be maintained by the government of
EU in order to secure the energy sources as well as bring higher ability to accomplish all the
need of country. This can be helpful implementing the various laws and commissioning
legislation which maintaining an harmonious relationship between the export and importer
countries. The legal strategies of the country should strict enough to secure the energy resources
of country and the imported gas supply from the other countries. As stated by Kratochvíl and
Tichý (2013) the EU government is commissioning various policies in relation to the state
members and other foreign countries in order to develop an effective and lawful agreement about
these supply of gas to the EU 29. The energy security strategy of EU can be claimed as that the
government bodies and the regulatory bodies are having authority to keep check on the entry and
exit of energy sources from the country and into the country. These should be followed by
formation of an legal contract which can be commissioned by the higher authorities. But in
European country they are reluctant to the laws and legislation provide by the government which
are not bound by the laws. This defines the compatibility of the countries to export the energy
28 Kratochvíl P, Tichý L. EU and Russian discourse on energy relations. Energy policy.
2013 May 31;56:391-406.
29 Aalto P, editor. The EU-Russian energy dialogue: Europe's future energy security.
Routledge; 2016 Mar 16.
16

sources which bring autonomy in EU. This may also leads to trouble in country in EU to the
security of energy resource of country.
WTO rules and energy
GATT and WTO are governing bodies of international trade which are also applicable to
the energy and energy related products. These regulatory bodies are also developing various
rules in relation to the security of energy within the boundaries of different countries of world.
After an long discussion over the security of energy in countries during the Tokyo and Uruguay
Rounds leads to an agreement development and formation of various policies in order to act
responsibly against the different issues related to the current energy conditions in world. The
various rule and regulation implemented by the GATT and WTO in practice with relation to
energy security and related issues in countries are as follows:
 All the principle of WTO related to the trade of goods internationally can be linked with
the energy sources as a products of export and import concern also. The energy sources
like natural gas, oil, fossil fuels, coal etc. are the product which can be traded between the
countries and these activities should be complied with the norms defined by WTO in
contorting trade of products overseas. In accordance with the article II MFN principle of GATS defines that various provisions
in relation to the energy related services. This defines various obligation related to
international suppliers, foreign services, various disciplines like monopolies and
flexibilities in RTAs are rules that many affects the operation related to energy.
Russian energy security
The Russia is responsibly acting towards the security of the national resource of the
energy in country. The country is established various legislation in relation to the securing the
export of gas to the other country. Russia is established an good commercial relationship with the
state member of European countries like Ukraine, Italy, and Germany which should be secured
through an effective legal system which should be bound with laws. The various legislation of
Russia in relation to the energy are documented and define in the energy strategy document
which defined the present polices of country as well as the future policies which are to be
followed to year 2020 for growth of the various sources of gas in political provinces of Russia.
The energy document which defines that various strategies that are t be developed by the Russia
in order to manage continuous supply of energy are like sustainable development of gas energy
17

through use of renewable resources, protection of environment as well as strengthening the
infrastructure which bring higher efficiency in the production of energy in the country.
The president of Russia passed an bill in July 2008 which provides to the government
through which the country can allocate all the reserves of oil and gas deposits on continental
shelf without following the process of auction in country. As stated by Aalto and editor (2016) in
2011 the Russia was involved in development of agreement which states that Russia will supply
oil to the country of China fro all the loan amount on Russian country by Chinese government
about 25 dollar within next 20 years through constructing pipelines between the Russia and
China 30. This will helps in strengthening the company of country and the country is having high
resources of gas and oil which helps in paying all the loans of country and results in effective
development of companies in country and leads to growth of economy by brining higher
profitability in business environment.
About 60% of the Russian of total export constitutes of supply of oil, gas and fuels to the
other countries which constitutes about 30% of GDP growth of the country. The Russia is having
large oil reserves under ground and pumps about 10.6 million barrel in a day and approximately
4 billion barrel in an year which is an large amount for the expert and gaining economical
strength in world. As stated by Haukkala (2010) the available sources of hydrocarbon in Russia
is also an source of increasing growth economy of world in next 390 years 31. Russia is an great
sources of the accomplishment of huge demand of future oil and fuels bring the power in world
which can provide an strengthening economical direction to the country.
Bilateral investment treaties
BIT is controlling over the activities of national companies in another countries through
implementing various terms and conditions over the actions of business. The bilateral investment
treaties defines various terms and conditions with relation to the private investments made by
national organisation in another state, other than the parent state of firm. This is also known as
Foreign direct investment (FDI).
30 Haukkala H. The EU-Russia strategic partnership: the limits of post-sovereignty in
international relations. Routledge; 2010 Feb 25.
31 Finon D. The EU foreign gas policy of transit corridors: autopsy of the stillborn Nabucco
project. OPEC energy review. 2011 Mar 1;35(1):47-69.
18

The BIT agreement was first signed and developed between the Pakistan and Germany
on 25th November 1959. The countries are bound to the terms and conditions of BIT while
engaging in any type of business activities. This also related with the business relationship of
both the countries in relation to the energy and its sources also. The agreement defines the
conditions on which the agreement is develop between to privately inventing companies in tow
territories. This provide an legal protection to the any kind of fraud related the business
activities. So, this also deal with the various operations related to the security of energy products
on private business and its export and import between tow territories. BIT consider the following
rights and protection related to the energy related investment in different state provinces, other
than the parent state of an private firm are as follows:
 This work in compliance with the national treatment with relation to the issues of energy
and its related business activities.
 Most favoured nation treatment also defined various conditions related to the private
investment agreements in relation to the energy. This defines fair and equitable treatment to the energy resources and use of these
different resources in different territories equally with fair practices.
EU strategies and Russian strategies for improvement of energy security
EU strategies: The various strategies that are developed by the European union helps in
securing the energy sources of country to large extent. The government is playing significant role
in defining the various legislation and strategies in order ton protect the fuels resources and also
helps in maintaining availability of energy sources to the citizen of country through applying
sustainable developmental approach by use of renewable sources.
Liberalization of energy markets-
 Legislation provide an unbound opportunity to integrate the vertical business firm to
expand the business and engaged in delivering of higher energy amount in country.
 As stated by Finon (2011).the legislation of EU also provides an equal opportunity to
access the basic infrastructure and then pipelines to everyone in country to make the
technical component of security of energy more compatible for people in state members
of European provinces32.
32 Findlater S, Noël P. Gas supply security in the Baltic States: a qualitative assessment.
International Journal of Energy Sector Management. 2010 Jun 29;4(2):236-55.
19

Energy pricing that benefits consumers of fuel and gas resources-
 The pricing of the energy sources in the country should be within the affordable rage of
the consumer so that they can easily access the fuel for their use.
 The prices of the fuel and oil in European country are developed as such as that involves
an short term contract with suppliers and maintain the rates according to the demand and
supply of fuel. The gas market prices should be spotted with the current trends of the market for well
being of citizen of country.
Diversifying the energy supply-
 As stated by Findlater and Noël (2010) the followed b y the diversifying the market
through using shale gas technology and the development of LPG33.
 The European country is constructed an pipeline of Russia bypass that directly connects
the Russia with European oil supply channel.
Russian Strategies:
Maintaining Russian state control over the issues related to the energy industry in
state provinces-
 The laws limits the private ownership in the sector of energy. The various legislation which restricts the entry of foreign companies in country and
enhance the Russian business in environment.
Developing strategies of government which benefits the producer of energy sources-
 The country is focusing ion developing of long term contract with other countries in order
to maintaining continuous strength and growth of economy of Russia.
The Russia is maintaining control over the transient route to Europe and the supply
of energy to Eurasian-
 The country us engaged in developing of various transit infrastructure which is useful in
supply of oil and helps in growth of independent states.
 As stated by Kulhanek (2010) the country is representing itself as an central source of
high energy resources which is having well develop infrastructure of supply pipelines34. This builds an bypass network of Russia network to Europe
33 Kulhanek J. The fundamentals of Russia's EU policy. Problems of Post-Communism.
2010 Sep 1;57(5):51-63.
20

Russia is promoting diversification the market of energy resources in country-
 The market of Russia with respect to the increase in sales of soil an fuel can be achieved
through building good relationship with the other countries.
 This can be achieved through negotiating the loans of an Russian companies with the
development of agreement of oil contracts. Developing of power of Siberia to build gas pipeline from Russia to China.
Growing energy security dilemma
There is an dilemma between the use of energy sources and the protecting and security of
the energy resources. As stated by Böhme (2014) this can be achieved through harmonising
between the both in country35. The European country are constantly trying to restricts their
business transaction related to the oil with other countries and promoting their own business firm
through development of nuclear plant in the country.
Russia’s concerns over the unbundling regime
The unbundling of energy resources referes to the segregating the operations of
generating energy with the supply of energy to other parts. This is defined with the restructuring
of transmission path of energy supply between two countries. Russia is focusing upon the
unbundling of the energy resources with production and supply in order to bring higher security
in system. This approach of Russian market helps in developing an good healthy competitive
market which bring higher efficiency functioning of energy operation and its supply to the
clients. This unbundling is preferred according to the following ways to the EU countries are as
follows:
 Ownership unbundling is the concept of segregating function where all companies
working for energy production or its direction can not interfere between the work of
transmission system operators.
 The independent system operations of unbudinling approach dependent upon the work
done from the third party of which worked for the transmission operators for the
companies engaged in supplying of energy to the different parts of territories.
34 Böhme D. EU-Russia Energy Relations: What Chance for Solutions? A focus on the
natural gas sector. Universitätsverlag Potsdam; 2014 Oct 9.
35 Bozhilova D, Hashimoto T. EU–Russia energy negotiations: a choice between rational
self-interest and collective action. European Security. 2010 Dec 1;19(4):627-42.
21

CONCLUSION
From the above dissertation discussion it has been understood that EU-Russia essentials
relationship in the gas range. Early on relationship between the individual imperatives markets,
made in the second bit of the last century, has grown significantly completed the course of
history. Current gas trade and related establishment weave the EU and Russian essentials
markets like no other on the planet. Relations in the gas fragment outline a basic bit of the
general EU-Russia relationship and have an unprecedented impact therefore. Joint effort in this
fragment in any case, has not been an extraordinarily smooth one. It is depicted by a collection of
threatening issues, which have been creating in number and power as of late. This subject has
ended up being to an awesome degree politicized consistently and it has been attracting more
thought from various agents and authorities. The dimensions of the interdependence that is
positive and negative aspects has been described in this discussion chapter to understand the
aspects that can take place in the development of the nation's economy.
The interdependence and relationship between the EU and Russia gas trading has also
been discussed in this to evaluate the healthy relation of both the nation and the crises that was
faced by European Union. The European energy security has also been discussed here where the
policies and several aspects of the security system were concluded. The green paper 2000, the
technical and commercial aspects has also been discussed with the security of the energy demand
and supply in several nations. The Russian energy security has also been concluded with the
reference to the major legal system to secure the supply of gases and natural energies. Several
strategies and various growth energy security dilemma has also been discussed in this
dissertation chapter.
22

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