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Soviet Energy Supplies as a Factor in East-West Relations

In: East-West Economic Relations in the Changing Global Environment

Author

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  • Jochen Bethkenhagen

    (German Institute for Economic Research)

Abstract

The USSR has been able to secure a growing share of the Western European energy market during the past decade. This applies particularly to natural gas supplies to some Western European countries; but lately it has been true of oil consumption as well (see Tables 8.1 and 8.2). The USSR probably owes the increases in its shares to the following factors: (a) Soviet energy prices are usually lower than the average prices of other suppliers. If more favourable alternatives had been avail-able (such as Norwegian natural gas), companies certainly would not have signed contracts with the USSR. (b) Drawing on USSR energy is also considered a way to increase security by diversifying the sources of supply. The fact that the USSR has always fulfilled its contracts faithfully lends weight to this point of view; the same cannot be said of energy suppliers from other regions (OPEC oil embargo, USA and Canadian uranium embargo). (c) Natural gas does not significantly emit harmful substances; expanding it as an energy source thus serves the goal of an ecologically sound energy supply.

Suggested Citation

  • Jochen Bethkenhagen, 1986. "Soviet Energy Supplies as a Factor in East-West Relations," International Economic Association Series, in: Béla Csikós-Nagy & David G. Young (ed.), East-West Economic Relations in the Changing Global Environment, chapter 8, pages 131-143, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-18400-2_8
    DOI: 10.1007/978-1-349-18400-2_8
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