Russia’s two state-owned energy giants, Rosneft and Gazprom, are now allies. The two signed an alliance deal late last month. Analysts suspect this move signals that Russia wants to force foreign energy companies out of the country.

The agreement between the two heavyweight oil and gas companies does, in many ways, make sense for them. Since both are state-owned, they will now operate on a 50-50 basis on projects. Rosneft is the second-largest oil producer in Russia, and Gazprom has an acknowledged monopoly on natural gas production. Chris Weafer, an analyst with one of Russia’s largest privately owned banks, said, “[W]e are likely to see some sort of super energy holding structure” in Russia.

Recent developments in the Sakhalin-2 energy field show Russia’s increasingly hostile attitude toward foreign energy companies. Gazprom took over Royal Dutch Shell’s $22 billion project on Sakhalin after Shell was charged with environmental violations. Russia Profile wrote that this takeover was anything but kosher. Unbelievably, it looks like Gazprom will gain control of British Petroleum’s Siberian oil operation in the same manner.

Russia has been described as an “energy superpower” and accused of using its vast energy resources as a political weapon. Early this year, Russia cut off Ukraine from gas supplies; this month it won the same battle against pro-Western Georgia. These are cruel moves in the midst of this region’s infamously harsh winters.

The alignment of all of Russia’s energy resources streamlines Russia’s major asset. Consolidating all of the resources within Russian borders under state-owned companies makes it easier for Moscow to wield its most powerful weapon. Not coincidentally, the most sought-after resources on Earth are the very ones Russia is gaining a firm grip on.

Russia can use this power to help or to hurt. It will likely use energy domination as a weapon against Western nations and as a tie to its fuel-hungry Asian neighbors.