ASSESSMENTS

Europe Discusses an Energy Union

Apr 25, 2014 | 09:02 GMT

The headquarters of Gazprom's German branch in Berlin.
The headquarters of Gazprom's German branch in Berlin.

(JOHN MACDOUGALL/AFP/Getty Images)

Summary

Russia's policy of using energy to influence foreign partners is coming upon a challenge from Europe. Polish Prime Minister Donald Tusk is calling for the establishment of a European energy union that would, among other things, mean EU member states would enter natural gas supply negotiations with Russia — Europe's main energy supplier — as a single bloc. Forming a European energy union has come up before without moving forward, but it will be considered more seriously this time around in light of difficult relations with Moscow. Certain aspects of the energy union proposal will probably advance but others will meet resistance.

In response to Russia's actions regarding the Ukraine crisis, the European Union will probably make greater political and financial efforts to integrate the physical energy infrastructure in the bloc. As a result, Russia will have less ability in the longer term to influence European countries' foreign policy through natural gas pricing.

Efforts by EU members in the coming years will make it more difficult for Russia to set significantly different natural gas prices for European countries....

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