Energy Security in the context of EU Russian Energy Dialogue

Dr. Vladimir Voloshin

Three main factors of energy security

sustainable energy supplyadequacy energy supplyreasonable energy price

To ensure energy security, the

European Union proposes:

to diversify energy supply sources (expanding the range of foreign suppliers, using renewable energy sources);to promote energy-saving development;to develop cooperation with traditional energy suppliers, primarily with Russia.

For the European Union, the energy dialogue provides opportunities for:

access Russian energy resources, primarily oil and gas;creation conditions for diversifying energy imports;enhancing the sustainability of energy supply to the EU.

For Russia, the energy dialogue provides opportunities for: attracting investment in order to develop energy fields;recovering and modernizing the energy infrastructure;creating favorable conditions for the economy to move to an innovations- based development model;reducing market imbalances and obstacles to competition in the energy sector;paving the way for restructuring the energy monopolies.

Druzhba-Adria Pipeline

Russia-Europe Gas Pipelines

The main principles of fuel and energy transit include:

freedom of transit, non-discriminatory access to transportation infrastructure for energy transit;provision of the national transportation regime for fuel and energy transit;dispute settling procedure.

Eastern Direction of Russian Oil Export

Common Problems

Energy povertyTransparence, energy market predictabilityEnergy efficiencyEcology issies

Oil Production in Russia, mln. tonnes

398,8

354,9

317,6310,8

302,9 307,4 304,3 304,8

323,3

348,1

379,6

421,4

460470

200

250

300

350

400

450

500

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Gas Production in Russia, bln. cubic meters

583,9581,6

595,4

620,3

632,8

640,6

550

560

570

580

590

600

610

620

630

640

650

2000 2001 2002 2003 2004 2005

Russian Oil Exports, mln. tonnes

108,5

129,2

96,2

26,1

127,6

16,6

186,4

22,2

173,5

39,9

0

50

100

150

200

250

1990 1995 2000 2003 2005

With exception of CIS CIS

Russian Gas Exports, bln. cubic meters

159,8

27,4

With exception of CIS

CIS

Russian Problems

Great gap between the rich the poorCriminalisation of economyLack of social securityNegative public opinion to big private property