March 26, 2013

Europe’s energy security discourse has been traditionally preoccupied with concerns about potential physical disruption of Russian gas. Fixation over the possibility of a physical disruption misses the point and misreads current European gas market realities. The real challenge for European-Russian energy relations, and in fact, for European energy security, lies in settling on a price that leaves both sides content.

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This latest issue brief, written by Eurasian Energy Futures Initiative senior fellow Adnan Vatansever and David Koranyi, deputy director of the Dinu Patriciu Eurasia Center, is part of the Atlantic Council’s Eurasian Energy Futures Initiative, and highlights that an uphill battle regarding the price of Russian gas is looming on the horizon. Already, the European Union and Russia are at odds on the price of gas following the launch of the antitrust investigation against Gazprom by the European Commission. This brief concludes that Gazprom’s increasingly suboptimal upstream strategy, its needlessly expensive export infrastructure strategy and the risk of higher taxes on the horizon cannot but further complicate its pricing policy in Europe.

This publication was launched at an event on March 26.