Russia, Estonia: New Energy Law Strains Relations

Estonia's parliament passed a law June 6 requiring the country's main natural gas company, Eesti Gaas, to sell its natural gas transportation infrastructure. The decision is in line with the European Union's Third Energy Package as well as with other countries' attempts to decrease their dependence on Russian energy supplies. The new law will challenge Russia's position in Estonia's energy sector and limit Russian ownership of strategic natural gas assets within the country.

However, Russia's leverage in Estonian energy has always been weaker than its influence over energy sectors in other Baltic states. In Tallinn, Moscow relies on other methods of persuasion — methods that will not be affected by the new law. Thus, while Estonia's new law might strain relations with Russia, it is unlikely to lead to a greater dispute.