After Russia cut supplies to Ukraine in 2006, the EU decided it needed to reduce its dependence on Russian gas. But since then, a series of shrewd moves by Gazprom, the Russian state-owned gas monopoly, has left the EU's diversification strategy in tattersby Derek Brower / July 28, 2007 / Leave a comment
Published in July 2007 issue of Prospect Magazine
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In the global contest for control over oil and gas distribution over the last 18 months, one side has offered the world a masterclass in strategic planning and execution. Gazprom, the Russian natural gas monopoly that controls over a third of the world’s reserves, has run rings around its main rivals: the natural gas consumers of the EU.
This is a problem for the EU and one of its main foreign policy goals: diversifying energy supply away from Russia and putting relations between Moscow and Brussels on a more even keel. Moreover, Russia’s domination of EU energy supply coincides with a reassertion of Moscow’s influence on issues from nuclear missiles to the middle east.