Valdai Discussion Club: ‘Energetic’ future of Russia

Russia continues to extend its energy market to the East tending to become a major supplier in coming years. But what challenges will Russia meet there? And how will its relations with Europe change in coming years? 

Rawi Abdelal, Joseph C. Wilson Professor of Business Administration, Harvard Business School, shared his views on this matter with Valdai International Discussion Club web-site.

During Vladimir Putin’s first presidential term, Europe’s oil dependence increased significantly. From your point of view what are the perspectives in the energy sphere in the upcoming years in this market?

In oil and gas the markets are very different. But in gas the energy relationship between the EU and Russia is clearly one of mutual dependence, while gas is the main part of Russia-Europe energy relations. And it’s true that gas imports from Russia to Europe and the price increased a lot, mostly due to the contract structure, because the price of the natural gas was linked to the price of fuel oil.  MORE