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Gas Supply and EU–Russia Relations

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  • Evert Faber Van Der Meulen

Abstract

Drawing on New Institutional Economics (NIE) theory, the article argues that EU energy policy towards Russia damages security of supply because it neglects the specific aims and propensities of Russia and Gazprom. EU Commission initiatives are based on the promotion of interdependence through market opening, favouring a policy of competition over security of supply. The reason for this focus is found in the EU's embedded inclination towards liberal markets. Russia, by contrast, has chosen suboptimal state control of natural resources over the frontier capitalism of the 1990s. Sustainability of the current rent based system and geopolitical considerations are essential to Russia and Gazprom. In this situation a pragmatic approach that aims at security of supply and security of demand seems to be more successful. In this approach, liberalisation of the market can only be a long-term goal.

Suggested Citation

  • Evert Faber Van Der Meulen, 2009. "Gas Supply and EU–Russia Relations," Europe-Asia Studies, Taylor & Francis Journals, vol. 61(5), pages 833-856.
    • Handle: RePEc:taf:ceasxx:v:61:y:2009:i:5:p:833-856
    DOI: 10.1080/09668130902905040
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    References listed on IDEAS

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    1. Neuhoff, K. & von Hirschhausen, C., 2005. "Long-term vs. Short-term Contracts; A European perspective on natural gas," Cambridge Working Papers in Economics 0539, Faculty of Economics, University of Cambridge.
    2. Douglass C. North, 1993. "Five Propositions about Institutional Change," Economic History 9309001, University Library of Munich, Germany.
    3. Andris Piebalgs, 2006. "Green paper: A European strategy for sustainable, competitive and secure energy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(02), pages 8-20, July.
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    Cited by:

    1. Locatelli, C., 2018. "La confrontation des systèmes institutionnels nationaux dans l'interdépendance : les échanges gaziers UE-Russie," Working Papers 2018-03, Grenoble Applied Economics Laboratory (GAEL).
    2. Catherine Locatelli, 2018. "La confrontation des systèmes institutionnels nationaux dans l'interdépendance : les échanges gaziers UE-Russie," Working Papers hal-01715932, HAL.
    3. Mehdi Abbas & Catherine Locatelli, 2019. "Interdependence as a lever for national hybridization: The EU-Russia gas trade [L’hybridation des systèmes institutionnels nationaux dans l’interdépendance. Les échanges gaziers UE-Russie]," Post-Print hal-02472141, HAL.
    4. Locatelli, C. & Abbas, M., 2019. "Interdépendance complexe et hybridation des modèles institutionnels nationaux : le cas des relations énergétique UE-Russie," Working Papers 2019-02, Grenoble Applied Economics Laboratory (GAEL).
    5. Catherine Locatelli & Mehdi Abbas, 2019. "Interdépendance complexe et hybridation des modèles institutionnels nationaux : le cas des relations énergétiques UE-Russie," Working Papers hal-02100098, HAL.

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