External Relations of the European Union in the Energy Sector: EU-Russia Energy (Trade) Relations

Abstract

This chapter aims to provide an analysis of the European Union’s (EU) external relations in the energy sector, focusing on EU-Russia energy trade relations and the Energy Community. Our hypothesis is that securing reliable flows of diverse sources of renewable energy would foster the EU's energy security and decrease its vulnerability towards major fossil fuel exporters. Section II provides an overview of pertinent data related to the EU’s energy production and consumption, as well as current trends and challenges the EU faces in the energy realm. Section III covers related competence issues with regard to the EU treaties. Section IV examines the energy-related treaty regimes that the EU is a part of, whereas Section V analyses the EU’s participation in the Energy Community (“EnC”) and related issues. EU-Russia energy relations concerning trade in oil and gas are analyzed in Section VI, which is followed by the conclusion with recommendations. The chapter concludes that the EU energy structure is highly dependent on external supplies. This fact explains why external energy relations play a crucial role in foreign-policy development. The ability to accommodate an effective EU energy acquis among its neighboring states as well as ensure a stable relation with the biggest energy supplier are two of the major external goals of the Union. However, to do so efficiently while ensuring energy security requires certain policy solutions, which the EU has been implementing for some time: The diversifying energy supplies, e.g., by means of trade liberalisation in green goods and services, the promotion of renewables, as well as the lobbying of the ECT modernisation.

Keywords: European Union, energy, international trade, Russia, Energy Community, treaty regimes, competence issues, EU treaties