Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security
The article analyses the position of Gazprom on the key export market - the market of the European Union. Situation on the EU gas market changed considerably because of an imbalance between supply and demand. Gazprom had to make price concessions for almost all of the main consumers of Russian gas i...
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| Format: | Article |
| Language: | English |
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MGIMO University Press
2014-08-01
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| Series: | Vestnik MGIMO-Universiteta |
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| Online Access: | https://www.vestnik.mgimo.ru/jour/article/view/158 |
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| author | V. I. Salygin N. Y. Kaveshnikov |
| author_facet | V. I. Salygin N. Y. Kaveshnikov |
| author_sort | V. I. Salygin |
| collection | DOAJ |
| description | The article analyses the position of Gazprom on the key export market - the market of the European Union. Situation on the EU gas market changed considerably because of an imbalance between supply and demand. Gazprom had to make price concessions for almost all of the main consumers of Russian gas in Europe, and also had to allow European consumers to break one of the key provisions of long-term contracts - "take or pay" clause. Besides disputes at the corporate level significant differences still remain about the well-known Third energy package, which effectively prohibits Gazprom to own and operate gas pipelines on the territory of the EU, as well as binding it to provide a third party access to gas pipelines. The implementation of Third package provisions on function unbundling by some EU Member States in the most rigid version may contradict bilateral international agreements of Russia with the EU Member States, primarily agreements on investment protection. Possible reasons underlying the investigation initiated by the European Commission against Gazprom in connection with a possible violation ofEU competition rules are examined. The paper investigates legal, political and economic aspects of contemporary regime of gas cooperation, particularly restriction of reexport, linkage between gas and oil prices, pricing based on long-term contracts and spot markets. The paper concludes that Russia and the EU need to elaborate a comprehensive document that would ensure the stability of the regulatory environment of energy cooperation and would reflect the balance of interests of producers and consumers. This document should equally ensure highly competitive environment and guarantees of security of supply in the short and long term. |
| format | Article |
| id | doaj-art-70e738ea7b1b46e585313c3b4f374e70 |
| institution | Kabale University |
| issn | 2071-8160 2541-9099 |
| language | English |
| publishDate | 2014-08-01 |
| publisher | MGIMO University Press |
| record_format | Article |
| series | Vestnik MGIMO-Universiteta |
| spelling | doaj-art-70e738ea7b1b46e585313c3b4f374e702025-01-30T12:16:10ZengMGIMO University PressVestnik MGIMO-Universiteta2071-81602541-90992014-08-0104(37)455310.24833/2071-8160-2014-4-37-45-53158Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy SecurityV. I. Salygin0N. Y. Kaveshnikov1Moscow State Institute of International Relations (University)Moscow State Institute of International Relations (University); Institute of Europe RASThe article analyses the position of Gazprom on the key export market - the market of the European Union. Situation on the EU gas market changed considerably because of an imbalance between supply and demand. Gazprom had to make price concessions for almost all of the main consumers of Russian gas in Europe, and also had to allow European consumers to break one of the key provisions of long-term contracts - "take or pay" clause. Besides disputes at the corporate level significant differences still remain about the well-known Third energy package, which effectively prohibits Gazprom to own and operate gas pipelines on the territory of the EU, as well as binding it to provide a third party access to gas pipelines. The implementation of Third package provisions on function unbundling by some EU Member States in the most rigid version may contradict bilateral international agreements of Russia with the EU Member States, primarily agreements on investment protection. Possible reasons underlying the investigation initiated by the European Commission against Gazprom in connection with a possible violation ofEU competition rules are examined. The paper investigates legal, political and economic aspects of contemporary regime of gas cooperation, particularly restriction of reexport, linkage between gas and oil prices, pricing based on long-term contracts and spot markets. The paper concludes that Russia and the EU need to elaborate a comprehensive document that would ensure the stability of the regulatory environment of energy cooperation and would reflect the balance of interests of producers and consumers. This document should equally ensure highly competitive environment and guarantees of security of supply in the short and long term.https://www.vestnik.mgimo.ru/jour/article/view/158european unionrussiaenergy policyenergy security |
| spellingShingle | V. I. Salygin N. Y. Kaveshnikov Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security Vestnik MGIMO-Universiteta european union russia energy policy energy security |
| title | Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security |
| title_full | Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security |
| title_fullStr | Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security |
| title_full_unstemmed | Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security |
| title_short | Gazprom on the European Market: In Search of the Balance between the Principles of Competition and Energy Security |
| title_sort | gazprom on the european market in search of the balance between the principles of competition and energy security |
| topic | european union russia energy policy energy security |
| url | https://www.vestnik.mgimo.ru/jour/article/view/158 |
| work_keys_str_mv | AT visalygin gazpromontheeuropeanmarketinsearchofthebalancebetweentheprinciplesofcompetitionandenergysecurity AT nykaveshnikov gazpromontheeuropeanmarketinsearchofthebalancebetweentheprinciplesofcompetitionandenergysecurity |