Political and Economic Reasons for Energy Cooperation between the EU and Russia

Abstract

In this paper I investigate the energy cooperation between the EU and Russia from the political and economic points of view. The relevance of the issue is due to the growing role of energy sector, the need for security of energy supply and demand and for political and economic balance of power in the region, and closer economic integration. Two theoretical approaches, geopolitical and bureaucratic, guiding the research, explain the behavior of protagonists. To better understand the present level of cooperation I analyze the background and dynamics of EU - Russia energy trade relations. As a case study, I investigate the Nord Stream project as an example of successful cooperation of Germany as an EU member state and Russia in this field. I discuss challenges for the healthy mutual partnership in the energy sector, namely, high politicization of the issue, monopolization of Russian energy sector and low sustainability of Russian economic development, and mistrust between the protagonists. I attempt to identify possible policy changes aimed to improve this cooperation and achieve fruitful partnership, security and stability. Key words: Russia, EU, energy, cooperation, Realpolitik, international relations, oil, gas, energy dialogue, ECT, security, balance of power, geopolitics, interest groups,...