Energy Security in Central and Eastern Europe and the Operations of Russian State-Owned Energy Enterprises
Energy Security in Central and Eastern Europe and the Operations of Russian State-Owned Energy Enterprises
Author(s): Martin Jirušek, Tomáš Vlček, Hedvika Koďousková, Roger W. Jr. Robinson, Anna Leshchenko, Filip Černoch, Lukáš Lehotský, Veronika Zapletalová
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Energy and Environmental Studies, Political Theory, Political Sciences, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, Political economy, Comparative politics, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: Russian State-Owned Energy Enterprises; Rosatom; Gazprom; Nuclear Energy in Central and Eastern Europe; Belarus; Nuclear power plant; Bulgaria; Czech Republic; Hungary; Latvia; Lithuania; Moldova; Poland; Romania; Slovakia; Ukraine;
Summary/Abstract: Dear distinguished reader, It is my utmost honor to present you the first volume of a series of energy security threat assessment studies stemming from the comprehensive, in-depth research of the Energy Security team at the Department of International Relations and European Studies of the Faculty of Social Studies of the Masaryk University conducted with the valuable support of, and in collaboration with, the Prague Security Studies Institute. This study addresses the rapidly evolving energy sector of Central and Eastern Europe, a sensitive, vulnerable region with regard to present and past Russian efforts to exercise varying levels of control over infrastructure, supply and pricing. The authors examine the operations and behavioral characteristics of two key Russian state-owned enterprises in the natural gas and nuclear energy sectors, namely Gazprom JSC and Rosatom State Atomic Energy Corporation, and seek to detect specific patterns and determining factors that shape their decision-making.
- E-ISBN-13: 978-80-210-8048-5
- Page Count: 696
- Publication Year: 2015
- Language: English
Strategic Operations of Russian State-Owned Energy Enterprises
Strategic Operations of Russian State-Owned Energy Enterprises
(Strategic Operations of Russian State-Owned Energy Enterprises)
- Author(s):Roger W. Jr. Robinson
- Language:English
- Subject(s):National Economy, Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, Financial Markets
- Page Range:24-48
- No. of Pages:25
- Keywords:Russian State-Owned Energy Enterprises; Economic backdrop; energy supplies;
- Summary/Abstract:A central question in assessing the foreign operations of Russian state-owned energy enterprises is determining which of their transactions and projects are more weighted in the strategic versus the commercial domain. In the vast majority of cases, both of these elements are in play in Kremlin and energy industry decision-making, hence the need to identify where the preponderance of evidence lies.
Research Methodology
Research Methodology
(Research Methodology)
- Author(s):Martin Jirušek
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, Financial Markets
- Page Range:49-72
- No. of Pages:24
- Keywords:Russian energy; natural gas; Nuclear sector; environment; energy resources;
- Summary/Abstract:To meet the goal of the study a hypothesis has been formulated as follows: „Russian energy companies in natural gas and nuclear sector act in order to maximize their influence on CEE markets and to strengthen Russian geopolitical influence in this region.“ Secondary goal here is to find out whether the determinants of the Russian companies differ according to various environments in the region or compared to Asia.
Sector of Nuclear Energy in Central and Eastern Europe
Sector of Nuclear Energy in Central and Eastern Europe
(Sector of Nuclear Energy in Central and Eastern Europe)
- Author(s):Tomáš Vlček
- Language:English
- Subject(s):National Economy, Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, Comparative politics, Evaluation research, Financial Markets
- Page Range:73-287
- No. of Pages:215
- Keywords:Belarus; Bulgaria; Czech Republic; Estonia; Hungary; Latvia; Lithuania; Moldova; Poland; Romania; Slovakia; Ukraine; Nuclear sector; Economic policy;
- Summary/Abstract:Belarus is a land locked country bordering with Russian Federation, Ukraine, Poland, Lithuania and Latvia. Belarus declared independence at the end of the WWI just to be occupied by Soviet troops shortly after and eventually incorporated to USSR as Belarusian Soviet Socialist Republic from 1919. After the Russian-Polish war the country was divided between these two states. The USSR has taken back the Polish part in 1939 and Belarus was not an independent state until July 1990 when Republic of Belarus was created. In 1994, Alexander Lukashenko was elected president of Belarus; he was reelected again for the second term (2001-2006), the third term (2006-2011) and also the fourth term (2011-2016). The election process especially for the fourth term had been criticized as flawed by most EU and OSCE countries. As a result, Lukashenko and his associates are forbidden to travel to EU member countries. Belarus is also very well known for his authoritative leadership (sometimes called as Europe's last dictatorship), oppression and corruption.
Activities of Rosatom in Asia
Activities of Rosatom in Asia
(Activities of Rosatom in Asia)
- Author(s):Hedvika Koďousková
- Language:English
- Subject(s):National Economy, Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, Comparative politics, Financial Markets
- Page Range:288-337
- No. of Pages:50
- Keywords:China; India; Vietnam; civil nuclear power development; Asian market;
- Summary/Abstract:As far as civil nuclear power development is concerned, we identified several diverse groups of players in the Asian market: a) mature countries with their nuclear technology and services export programs (e.g. Japan, South Korea, newly followed by China); b) countries which operate nuclear power plants, but had otherwise limited participation in nuclear sector due to being outside of the Nuclear Non-proliferation Treaty (India until 2008, Pakistan); c) newcomers to the sector, who decided to address their rapidly growing energy demand by developing their nuclear power-generating capacity (e.g. Vietnam, Bangladesh, etc.).
Summary of findings
Summary of findings
(Summary of findings)
- Author(s):Tomáš Vlček
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, Financial Markets
- Page Range:338-362
- No. of Pages:25
- Keywords:Sector of Nuclear Energy; Central and Eastern Europe; Energy sector;
- Summary/Abstract:As stated above, the aim of the research was to provide an in depth analysis of Russian operations in the nuclear sector of Central and Eastern Europe. The research sought to unearth whether Rosatom subscribes to specific patterns of conduct with regard to business environment and if so, what are the determining factors of such behaviour. To meet the goals of the study, the following hypothesis was formulated: „Russian state owne denergy companies in the natural gas and nuclear sectors act in order to maximize their influence and market share in CEE markets and strengthen Russian geopolitical leverage and positioning in this region.“
Rosatom's Activities in the Asian Market
Rosatom's Activities in the Asian Market
(Rosatom's Activities in the Asian Market)
- Author(s):Hedvika Koďousková
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Comparative politics, Financial Markets
- Page Range:363-375
- No. of Pages:13
- Keywords:Asian Market; Civil nuclear power development; Rosatom's activities;
- Summary/Abstract:As far as civil nuclear power development is concerned, the research identified several different groups of players in the Asian market: 1) mature countries with their own nuclear technology and services export programs (i.e., Japan, South Korea, and increasingly China); 2) countries which operate nuclear power plants, but have had otherwise limited participation in the nuclear sector due to being non-signatories to the Nuclear Non-proliferation Treaty (i.e., India until 2008, Pakistan); and 3) newcomers to the sector, who decided to address their rapidly growing energy demand by developing their own nuclear power-generating capacity (e.g. Vietnam and Bangladesh).
Natural Gas Market Of the European Union and Its Impact on the Position of Gazprom in Europe
Natural Gas Market Of the European Union and Its Impact on the Position of Gazprom in Europe
(Natural Gas Market Of the European Union and Its Impact on the Position of Gazprom in Europe)
- Author(s):Filip Černoch
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, International relations/trade, EU-Accession / EU-DEvelopment, Financial Markets
- Page Range:377-399
- No. of Pages:23
- Keywords:Natural gas market; European Union; Gazprom;
- Summary/Abstract:Natural gas markets in the EU are characterised by the high level of import dependency resulting from the combination of decreasing indigenous production and stable or increasing demand. Despite significant share of LNG, the EU imports most of its consumption from Norway, Russia and Algeria.The producers in this countries are often state controlled and function in close cooperation with the government (Talus, 2014). Given the accusations of Gazprom misusing gas suppliesas a political tool, the EU faces a challenge how to cope with this company as a significant energy supplier.
Country Case Study: Belarus
Country Case Study: Belarus
(Country Case Study: Belarus)
- Author(s):Anna Leshchenko
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:400-412
- No. of Pages:13
- Keywords:Belarus; Russia; Energy and gas sector;
- Summary/Abstract:From the political, economic and security relations point of view, Belarus is often considered to be the closest ally among Russia's neighbours (Garbe, Hett & Lindner, 2011, p. 188). In the times of USSSR's existence, Belarus was Byelorussian SSR a federal republic, within which significant production capacities of Soviet industry existed, especially the heavy industry and consumer production.
Country Case Study: Bulgaria
Country Case Study: Bulgaria
(Country Case Study: Bulgaria)
- Author(s):Martin Jirušek
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:413-440
- No. of Pages:28
- Keywords:Bulgaria; Gas; Energy policy; Gazprom;
- Summary/Abstract:Bulgaria is a country located in the South-eastern Europe that experienced similar transition period as its neighbor Romania and joined the EU in 2007. Contrary to the expectations of similarities between Romania and Bulgaria, their situation in terms of energy security differs quite substantially. One of the reasons is rooted in history. Despite its close proximity, Bulgaria did not develop into a position of largely independent country in terms of energy supply. Although its dependence is not the highest, the energy security risks are highlighted by the fact that the only energy source that can be found in Bulgaria inconsiderable amount is lignite.
Country Case Study: Czech Republic
Country Case Study: Czech Republic
(Country Case Study: Czech Republic)
- Author(s):Martin Jirušek
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:441-454
- No. of Pages:14
- Keywords:Czech Republic; Energy sector; gas supplies;
- Summary/Abstract:The Czech Republic was part of the so called Eastern Blocuntil 1989 when the whole Soviet sphere of power crumbled. It is thus understandable that the nature of the whole industry and energy sector was oriented eastwards with the former Soviet Union as the main partner and supplier. The Czech Republic was thus supplied by the same pipelines that supplied the whole region with Russian energy sources.
Country Case Study: Estonia and Hungary
Country Case Study: Estonia and Hungary
(Country Case Study: Estonia and Hungary)
- Author(s):Lukáš Lehotský
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, Financial Markets
- Page Range:455-505
- No. of Pages:51
- Keywords:Estonia; Hungary; Russia; Natural gas imports; Energy sector; primary energy supply;
- Summary/Abstract:Estonia, a former member of the Soviet Union, is highly dependent on Russian natural gas imports. Thus, energy grids of the country are more intertwined with Russia, compared to other European countries. However, Estonia is largely independent in terms of primary energy supply, as majority of energy comes from domestically-available oil shale. Natural gas and other sources therefore represent only about 15% of the primary energy supply (IEA, 2013, p. 20).
Country Case Study: Latvia and Lithuania
Country Case Study: Latvia and Lithuania
(Country Case Study: Latvia and Lithuania)
- Author(s):Veronika Zapletalová
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade, Comparative politics
- Page Range:506-533
- No. of Pages:28
- Keywords:Latvia; Lithuania; Natural gas; heat energy and electric energy;
- Summary/Abstract:In 2012, the total consumption of TPES in Latvia amounted to 50,8 TWh. Natural gas was the main resource for generating heat energy and electric energy. The total consumption of natural gas reached 14,1 TWh, which corresponds to 28 % of TPES. There is no indigenous gas production in Latvia. All the gas consumed in the country is imported from the Russian Federation by two 700 mm pipelines (ENTSOG, 2014, p. 23).
Country Case Study: Moldova
Country Case Study: Moldova
(Country Case Study: Moldova)
- Author(s):Martin Jirušek
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:534-547
- No. of Pages:14
- Keywords:Moldova; Gas Infrastructure; Russia; Gas supply; Gazprom;
- Summary/Abstract:The Republic of Moldova emerged as a sovereign state after the dissolution of the Soviet Union at the beginning of the 1990s, but follows the earlier state history, especially in medieval times, when Moldova played an important role as a defence against Ottoman Empire. The bulk of the country lies between the river Prut on the west and the Dniester River, which also forms a natural border of the separatist region of Transnistria. This part of Moldova forms a problematic region, unilaterally self-proclaimedas independent and strongly leaning towards Russia.
Country Case Study: Poland
Country Case Study: Poland
(Country Case Study: Poland)
- Author(s):Veronika Zapletalová
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:548-561
- No. of Pages:14
- Keywords:Poland; Natural Gas Sector; energy industry; cheap local coal;
- Summary/Abstract:In Poland, the role of natural gas has been relatively minor, and per capita consumption is a consequence of the predominance of cheap local coal in the country's energy industry.
Country Case Study: Romania
Country Case Study: Romania
(Country Case Study: Romania)
- Author(s):Martin Jirušek
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:562-577
- No. of Pages:16
- Keywords:Romania; Oil and gas producer; Russia; Energy prices;
- Summary/Abstract:Although being counted among the group of post - communist countries of the Central and Eastern Europe, Romania represents an example different from its neighbouring countries.First and foremost difference is that the country is not unilaterally dependent on Russian supplies. In fact, Romania is the biggest oil and gas producer in the Central and Eastern Europe. It is, however, a net importer of oil and gas importing these hydrocarbons exclusively from Russia (Pachiu, Dudau, & Mustaciosu, 2014).
Country Case Study: Slovak Republic
Country Case Study: Slovak Republic
(Country Case Study: Slovak Republic)
- Author(s):Lukáš Lehotský
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:578-606
- No. of Pages:29
- Keywords:Slovakia; Natural gas from Russia; main transit route; pipeline system;
- Summary/Abstract:Slovak Republic has played a key role in transit of natural gas from Russia to Western Europe, the domestic demand of country is not very significant. It has oscillated between 4.5 to 7 billions of cubic meters (bcm) annually for the last 30 years. The final consumption of gas in Slovakia was expected to be slightly above 5 bcm in 2014. According to IEA data from 2012, share of gas in total final consumption of gas was slightly above 30%.
Country Case Study: Ukraine
Country Case Study: Ukraine
(Country Case Study: Ukraine)
- Author(s):Anna Leshchenko
- Language:English
- Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade, EU-Accession / EU-DEvelopment
- Page Range:607-627
- No. of Pages:21
- Keywords:Ukraine; Russia; Economic relations; gas and oil extractions;
- Summary/Abstract:Regarding their geographical closeness and historical interconnection of economies, Russia and Ukraine maintained high level of political and economic cooperation even after the end of the so called Cold War. In the 1990s of 20th century under President Leonid Kuchma Ukrainian foreign policy was characterized by being “multi-vectoral”, when attempts to establish closer relations with EU states and the US were compensated by active political and economic cooperation with Russia.
Activities of Gazprom in Asia and the "Eastern Dimension" in Russian Energy Policy
Activities of Gazprom in Asia and the "Eastern Dimension" in Russian Energy Policy
(Activities of Gazprom in Asia and the "Eastern Dimension" in Russian Energy Policy)
- Author(s):Hedvika Koďousková
- Language:English
- Subject(s):Business Economy / Management, Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:628-669
- No. of Pages:42
- Keywords:Gazprom; Asia; Russian energy policy; Asian gas market; energy policy;
- Summary/Abstract:In the 1990s and at the beginning of the 2000s, there were practically no major efforts of Russia to diversify its oil and gas exports beyond Europe. Except for some preliminary agreements between Russian private players with potential Asian consumers (see below), there were no gas purchase and sale contracts concluded as well as no major infrastructure constructed, which would connect Russian vast but untapped Eastern Siberian and the Far Eastern gas resources with Asian market.
Summary of findings
Summary of findings
(Summary of findings)
- Author(s):Martin Jirušek
- Language:English
- Subject(s):Business Economy / Management, Energy and Environmental Studies, Environmental and Energy policy, Government/Political systems, International relations/trade, EU-Accession / EU-DEvelopment
- Page Range:670-688
- No. of Pages:19
- Keywords:Natural gas; Central and Eastern Europe; Nuclear and gas sector; Russia;
- Summary/Abstract:The aim of the research was to provide an insight into the conduct of Russian state-owned enterprises (SOEs) in natural gas and nuclear sector and test the following hypothesis:„Russian energy companies in natural gas and nuclear sector actin order to maximize their influence on CEE markets and to strengthen Russian geopolitical influence in this region.“ This section is intended to address the natural gas sector, i. e. Gazprom's conduct in the region of Central and Eastern Europe. For this purpose, a theoretical model based on the strategic approach to energy policy was developed.
Overal Conclusion
Overal Conclusion
(Overal Conclusion)
- Author(s):Martin Jirušek, Roger W. Jr. Robinson
- Language:English
- Subject(s):Business Economy / Management, Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Government/Political systems, International relations/trade
- Page Range:689-690
- No. of Pages:2
- Keywords:Rosatom; Gazprom; marketplace; Energy supply; NPP; state-owned energy enterprise;
- Summary/Abstract:After an exhaustive research process, several popular assumptions about the operations and behaviour of Rosatom and Gazprom were validated, while several others proved exaggerated or outright incorrect. Rosatom, in particular, faces competitors in a high-end (technically), high-cost marketplace,and hence is visible and monitored by prospective sovereign customers. The company, therefore, must show extra caution concerning the politicization of any of its actions for fear of market estrangement.
