Russia: Court Supports Government’s Control of Energy

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Russia: Court Supports Government’s Control of Energy

Gazprom, the largely state-run Russian energy giant, recently caught another break from the nation’s court system. Last Wednesday, much to the chagrin of Europe, Russia’s State Duma overwhelmingly approved a bill formalizing Gazprom’s monopoly over gas exports, thereby further cementing President Vladimir Putin’s control over Russia’s most precious asset.

Beyond dealing Putin another ace in an already stacked hand, this decision will further arrest the attention of Russia’s western neighbors. Earlier this year, the European Union experienced a minor reality check regarding its dependence on Russian energy sources when Gazprom’s difficulties with the Ukraine spilled over to cause a temporary drop in oil flow into Western Europe. This new pro-Gazprom legislation, as the St. Petersburg Timesreported July 7, “is likely to exacerbate tensions between Russia and the European Union.”

Since its catfight with Gazprom in January, the EU has been pressuring Russia to diminish the company’s monopoly over state energy exports, as well as to ratify the “Energy Charter Treaty, which mandates that signatories hew to market-based principles in energy investment and transit” (ibid.).

Russia’s response to Europe’s efforts can be seen in the overwhelming approval of this legislation. Rather than curb Gazprom’s monopoly over the export of Russian gas, this legislation will enhance and streamline the power of this mighty company.

Russia is proving deaf to European cries for fairness.

Thanks to its role as Europe’s primary energy supplier, Moscow has grown steadily bolder and more confident in its dealings with the Continent in recent years. The days of Russian submissiveness are rapidly vanishing; a new Russia is emerging.

Owing to Russia’s mammoth energy reserves, and the fact that Europe’s need for energy imports is only going to grow, some analysts believe Moscow will have the upper hand in Russian/European relations for decades to come. Anyone who believes this must consider European history.

Germany and the rest of Europe will be slaves to no one. You can be sure that Europe’s energy subservience today will spark a Continent-wide revival that will result in a newly dominant and independent Europe. This new Russia will serve as a catalyst to the rise of a new Europe.