Addressing the Russia Energy Challenge: Why Regulation Trumps Geopolitics
Europe's dependence on Russian gas has raised security concerns, especially in response to Russia's aggression against Ukraine. But this threat is overestimated. The truth is that the EU market, a large market with relatively high prices is very important for Gazprom. What is more, Europe's regulatory apparatus is well-equipped to deal with market power and discriminatory pricing, which is at the core of the real problem Russian gas poses to Europe.
Andrea Goldthau is a professor of public policy at Central European University, an associate with the Geopolitics of Energy Project at Harvard's Belfer Center for Science and International Affairs, and a fellow with the Global Public Policy Institute.
The Trans-Atlantic Energy Action Project is funded in part by the European Union. Learn more here.