Presentation on theme: "Energy, Climate and Economic Development Producers Point of View Energy Security: How to Ensure Supply for the EU and its Neighbours? Danila Bochkarev."— Presentation transcript:
Energy, Climate and Economic Development Producers Point of View Energy Security: How to Ensure Supply for the EU and its Neighbours? Danila Bochkarev Fellow, EastWest Institute
Buyers vs. Sellers Liberal Approach (Security of supply) 1.Free market and trade. 2.Liberal values. 3.Unrestricted access to natural resources. 4.Efficiency-driven economy. Conservative Approach (Security of demand) 1.Sovereignty and security concerns, realpolitik. 2.Mercantilist and protectionist trends. 3.Community values. 4.Energy/infrastructure as a part of the national interests and development imperative.
MAJOR CHALLENGE: DIFFERENT APPROACHES TO THE ENERGY SECURITY Competitiveness, climate change are three major points of EU energy triangle, these are also important for other players but they are being seen differently. Central divide in approaching energy security is between energy-exporting and energy-importing states (so called energy nationalism) regarding rent sharing. This division illustrates a contradiction between globalization models resulting in the application of different mineral- wealth management and regulation frameworks. Different visions for the energy mix (future of the green energy) Hidden tensions between developed and developing energy importers.
RUSSIAN APPROACH: PRESENT AND FUTURE The principle of unconditional state sovereignty over natural resources and decision making process, but liberalized access for few private sector players. State control of the energy sector becomes more sophisticated and depends on the price level. An indivisible global energy security – main responsibility of all global energy players. National energy policies that impact regional and global energy security must be coordinated with all relevant actors. A new transit regime and dispute resolution based on the diplomatic rather than legal tools. Energy efficiency, high tech and modernization are important but hydrocarbons are set to remain relevant. Equal access to energy markets, technologies and investment in exchange for assets and investments.
GAS TRANSIT, VERTICAL INTEGRATION AND 3 rd ENERGY PACKAGE The Nord Stream/South Stream projects – avoiding transit at all costs and connection tool with Gazproms foreign clients? How to keep vertical integration and protect long-term supply and transportation contracts? Getting access to downstream? Gazproms ownership unbundling problems in Europe. Looking East or sticking to Europe?