Russia’s Energy Strategy

To be globally competitive Russia needs a viable energy strategy

The issue of energy security continues to dominate Russia’s agenda. In his annual address to parliament, President Putin stressed this topic, too. While highlighting Russia’s role as the world’s largest oil producer in 2006, Putin lamented the sluggish pace of developing the nation’s refining industry, which lags behind world leaders. Questioning Russia’s ability to extract the maximum value out of its natural resources, Putin ordered the government to develop a set of measures intended to stimulate growth of the domestic refining sector.


Meanwhile, apart from the internal intrigue of energy security, there is also a great deal of external intrigue. Citing a gas crisis in Ukraine in early 2006 and the halt of Russian gas deliveries to Belarus in January, the European Union drafted its own energy strategy, which calls for construction of a network of transport pipelines that bypass Russia.

At about the same time, German Chancellor Angela Merkel suggested that the EU and the United States create a Transatlantic trade and economic alliance, with energy cooperation as one of its cornerstones. Although Washington is in no hurry to share Europe’s oil and gas interests, it is inclined to accept the proposal – if only to stand up to Russia, which has been accused of dictating its energy policy to the rest of the world.

The Journal of Turkish Weekly