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Nabucco and the Russian gas strategy vis-a-vis Europe

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  • Rafael Fernandez

Abstract

The Nabucco pipeline project poses a double challenge to Russia: it risks weakening both Russia's monopoly in Europe and its monopsony in Central Asia. This article analyses the various channels through which the Russian government and the state-owned Gazprom enterprise have sought to undermine the Nabucco pipeline's options: strengthening their position in Central Asia, proposing construction of Southstream and taking control of the Central European Gas Hub (CEGH) in Baumgarten (Austria). Analysis shows that in all three cases the measures have proved consistent with the objectives of the Russian gas export strategy. Therefore, it is not really precise to speak of a 'direct' reaction by the Russian government to the Nabucco project; rather, Russia has developed an export strategy that has 'indirectly' given an effective response to the project, leaving it in a considerably weakened position.

Suggested Citation

  • Rafael Fernandez, 2011. "Nabucco and the Russian gas strategy vis-a-vis Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 23(1), pages 69-85.
    • Handle: RePEc:taf:pocoec:v:23:y:2011:i:1:p:69-85
    DOI: 10.1080/14631377.2011.546976
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    References listed on IDEAS

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    1. Stern, Jonathan, 2005. "The Future of Russian Gas and Gazprom," OUP Catalogue, Oxford University Press, number 9780197300312.
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    Cited by:

    1. Raszewski, Slawomir, 2022. "When one door closes, another opens: How the failure of the Turkey - Austria natural gas pipeline project has led to recovery, resilience and scalability of successor projects," Energy Policy, Elsevier, vol. 167(C).
    2. Azimzhan Khitakhunov & Bulat Mukhamediyev & Richard Pomfret, 2017. "Eurasian Economic Union: present and future perspectives," Economic Change and Restructuring, Springer, vol. 50(1), pages 59-77, February.
    3. Vatansever, Adnan, 2017. "Is Russia building too many pipelines? Explaining Russia's oil and gas export strategy," Energy Policy, Elsevier, vol. 108(C), pages 1-11.

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