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Russian and European gas interdependence. Can market forces balance out geopolitics?

Author

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  • Dominique Finon

    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Catherine Locatelli

    () (LEPII-EDDEN - équipe EDDEN - LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique)

Abstract

This article analyses the economic risk associated with the dominant position of the Russian vendor in the European market, with a view to assessing the relevance of possible responses by European nations or the EU. It considers various aspects of the Russian vendor's dependence on the European market, before turning to the risks that Gazprom exerts market power on the European market. It concludes by considering the relevance of the possible responses open to the EU and member states to limit any risks by creating a gas single buyer or more simply by encouraging the development of a denser pan-European network, with additional sources of supply and increased market integration.

Suggested Citation

  • Dominique Finon & Catherine Locatelli, 2008. "Russian and European gas interdependence. Can market forces balance out geopolitics?," Post-Print halshs-00129618, HAL.
  • Handle: RePEc:hal:journl:halshs-00129618
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00129618v2
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    File URL: https://halshs.archives-ouvertes.fr/halshs-00129618v2/document
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    References listed on IDEAS

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    1. Allaz Blaise & Vila Jean-Luc, 1993. "Cournot Competition, Forward Markets and Efficiency," Journal of Economic Theory, Elsevier, vol. 59(1), pages 1-16, February.
    2. Dominique Finon & Catherine Locatelli, 2002. "The liberalisation of the European gas market and its consequences for Russia," Post-Print halshs-00187059, HAL.
    3. Quast, Oliver & Locatelli, Catherine, 1997. "Russian natural gas policy and its possible effects on European gas markets," Energy Policy, Elsevier, vol. 25(2), pages 125-133, February.
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    8. Eirik Lund Sagen & Marina Tsygankova, 2006. "Russian Natural Gas Exports to Europe. Effects of Russian gas market reforms and the rising market power of Gazprom," Discussion Papers 445, Statistics Norway, Research Department.
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    11. Dominique Finon & Catherine Locatelli, 2002. "The liberalisation of the European gas market and its consequences for Russia," Post-Print halshs-00177828, HAL.
    12. Catherine Locatelli, 2003. "The viability of deregulation in the russian gas industry," Post-Print halshs-00001308, HAL.
    13. Catherine Locatelli, 2006. "The russian oil industry between public and private governance : obstacles to international oil companies' investment strategies," Post-Print halshs-00002159, HAL.
    14. Rolf Golombek & Eystein Gjelsvik & Knut Einar Rosendahl, 1995. "Effects of Liberalizing the Natural Gas Markets in Western Europe," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 85-112.
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    More about this item

    Keywords

    GAZPROM; INTERNATIONAL GAS MARKET; DEPENDENCE; EUROPEAN GAS MARKET; DEPENDANCE ENERGETIQUE; MARCHE INTERNATIONAL; GAZ NATUREL; MARCHE GAZIER EUROPEEN;

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