Eu Russia energy relations to Baltic perspective

Europe’s high and rising energy demand is highlighting the security problems associated with its dependence on especially Russian gas supplies, and the need for diversifying European energy supply. The Caspian region provides the most accessible alternative in this regard, provided that the region’s resources are transported through the Caucasian corridor, which also requires significant infrastructure investments. The EU, however, faces several challenges to securing Caspian energy resources, above all in the form of Russian attempts to consolidate its gas monopoly position and competition from China. Also, the EU has so far been unable both to pursue a common energy policy and to acknowledge the geopolitical realities of the Caspian region.
The Nord Stream project proposes constructing two natural gas pipelines from Russia to Germany under the Baltic Sea, with the likely inclusion of a service riser north-east of the island of Gotland. While the environmental, economic and energy-political concerns of the Nord Stream project are widely debated elsewhere, this paper sheds some light on the security and security-political aspects of the project by giving a tour d’horizon of these implications from a European and Baltic Sea region perspective.
Legally speaking, Nord Stream is a Swiss company, but economically it is a joint venture between Russia, Germany and the Netherlands. However, the most fundamental point is that the project, strategically and politically speaking, is a project driven by Russian interests. It serves both the commercial priorities of Gazprom and the strategic priorities of the Kremlin. The focus in this paper is hence on Russia.
Energy infrastructure is seen in Moscow as a vital strategic interest and the Nord Stream project will be treated as such by the majority stakeholder, including backing from the Russian state. The European Union is thus facing a situation where its mounting energy needs have to be balanced by the...

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