Eurasia Energy Eurasia Energy PolicyPolicy

Case StudyCase Study

Russia – Ukraine RelationsRussia – Ukraine Relations

Vittorio PagliaroVittorio Pagliaro

Entire RegionEntire Region

Baltic, Central-Eastern Europe, BalkansBaltic, Central-Eastern Europe, Balkans

Caucasus and Central AsiaCaucasus and Central Asia

What is Eurasia?What is Eurasia? Eurasia is the landmass Eurasia is the landmass

made of the continents made of the continents of Europe and Asiaof Europe and Asia

With the dissolution of With the dissolution of the Soviet bloc, new the Soviet bloc, new developments are developments are sweeping through sweeping through EurasiaEurasia

The Former Caucasus The Former Caucasus Soviet Republics and Soviet Republics and the Central Asia the Central Asia Republics make up the Republics make up the core of the New Eurasiacore of the New Eurasia

Can the West formulate Can the West formulate a new approach to the a new approach to the new Political and new Political and Economical Dynamics Economical Dynamics of the Eurasia of the Eurasia

Landmass?Landmass?

Russia, East-Central Europe, and Central Russia, East-Central Europe, and Central

Asia: Overview and Economic HistoryAsia: Overview and Economic History Early settlementsEarly settlements——

tribes in Caucasus area tribes in Caucasus area before 20,000 B.C.  before 20,000 B.C.  Slavic tribes date to Slavic tribes date to 2,000 B.C. in eastern 2,000 B.C. in eastern Carpathians, spread west Carpathians, spread west to Czech area, east to to Czech area, east to Russia, south to Russia, south to Balkans. Balkans. 

GreekGreek realm united realm united after 359 B.C. by after 359 B.C. by Philip Philip of Macedonof Macedon, and his , and his son son AlexanderAlexander conquered most of conquered most of Persia, spreading Greek Persia, spreading Greek culture through an culture through an enormous empire.enormous empire.

The Roman Empire: 14 A.C. and 177 A.C.The Roman Empire: 14 A.C. and 177 A.C.

RomansRomans conquered conquered Alexander’s Alexander’s western western empire and empire and much of much of Europe. Europe. Empire divided Empire divided East-West in East-West in 285 A.C. 285 A.C.

Byzantine Empire in 814Byzantine Empire in 814 Byzantine Byzantine

empireempire preserved preserved classical classical civilization civilization after Rome after Rome fell in 476 fell in 476 A.C. Eastern A.C. Eastern church church adopted adopted Greek liturgy. Greek liturgy. Led to schism Led to schism in 1054.in 1054.

     Bulgaria (632–1018): First Slav State in the 6th century A.D.

The First Bulgarian Empire was a medieval Bulgarian State founded in A. C. 632 in the lands near the Danube Delta and disintegrated in A. C. 1018 after its annexation to the Byzantine Empire

Principalities of the Kievan RusPrincipalities of the Kievan Rus

Kievan Rus: Kievan Rus: On On trade route, Kiev trade route, Kiev became capital became capital of Russian city-of Russian city-states during 9th states during 9th century. Kievans century. Kievans were were cosmopolitan, cosmopolitan, but adoption of but adoption of Eastern Eastern Orthodoxy in 980 Orthodoxy in 980 contributed to contributed to Eastern Eastern separationseparation

1054 The Great Schism

The The East-West East-West SchismSchism, or the , or the Great SchismGreat Schism, , divided medieval divided medieval ChristendomChristendom into into Eastern (Greek) Eastern (Greek) and Western and Western (Latin) branches, (Latin) branches, which later which later became known became known as the as the Eastern OrthodoEastern Orthodox Churchx Church and the and the Roman Catholic Roman Catholic ChurchChurch

The Spread of Islam: 622-750The Spread of Islam: 622-750 Mongol and Mongol and

Turkish ConquestsTurkish Conquests    in 13th-17th in 13th-17th centuries devastated centuries devastated Central Eurasia, Central Eurasia, severed Western severed Western ties, and caused ties, and caused Russian capital to Russian capital to move to Moscow, move to Moscow, which became the which became the “Third Rome” after “Third Rome” after the fall of the fall of Constantinople/IstanConstantinople/Istanbul in 1453. Czechs, bul in 1453. Czechs, Slovaks, Poles, and Slovaks, Poles, and Slovenes avoided Slovenes avoided Ottoman domination; Ottoman domination; Hungary and Croatia Hungary and Croatia were liberated earlywere liberated early

The Mongol Empire and Tamerlane: The Mongol Empire and Tamerlane: 1206–14051206–1405 The Mongol Empire

was an empire from the 13th and 14th century spanning from Eastern Europe across Asia. It is the largest contiguous empire in the history of the world. It emerged from the unification of Mongol and Turkic tribes in modern day Mongolia, and grew through invasions

Timur (1336–1405), commonly known as Tamerlane in the West,was a 14th century Turko-Mongol conqueror of much of western and Central Asia, and founder of the Timurid Empire and Timurid dynasty (1370–1405) in Central Asia, which survived until 1857 as the Mughal Empire of India

The Ottoman Empire, Expansion and Apogee : The Ottoman Empire, Expansion and Apogee : 1453-15661453-1566

The Ottoman Empire was an The Ottoman Empire was an empire that lasted from 1299 to empire that lasted from 1299 to November 1922 (as an imperial November 1922 (as an imperial monarchy) or July 24, 1923 (de monarchy) or July 24, 1923 (de jure, as a state) It was succeeded jure, as a state) It was succeeded by the Republic of Turkey,which by the Republic of Turkey,which was officially proclaimed on was officially proclaimed on October 29, 1923.October 29, 1923.

At the height of its power (16th–At the height of its power (16th–17th century), it spanned three 17th century), it spanned three continents, controlling much of continents, controlling much of Southeastern Europe, the Middle Southeastern Europe, the Middle East and North Africa. The East and North Africa. The Ottoman Empire contained 29 Ottoman Empire contained 29 provinces and numerous vassal provinces and numerous vassal states; some of which were later states; some of which were later absorbed into the empire, while absorbed into the empire, while others gained various types of others gained various types of autonomy during the course of autonomy during the course of centuries.centuries.

The empire was at the centre of The empire was at the centre of interactions between the Eastern interactions between the Eastern and Western worlds for six and Western worlds for six centuries. With Constantinople as centuries. With Constantinople as its capital city, and vast control of its capital city, and vast control of lands around the eastern lands around the eastern Mediterranean during the reign of Mediterranean during the reign of Suleiman the Magnificent, the Suleiman the Magnificent, the Ottoman Empire was, in many Ottoman Empire was, in many respects, an Islamic successor to respects, an Islamic successor to the Eastern Roman (Byzantine the Eastern Roman (Byzantine Empire), Empire),

Russian EmpireRussian Empire The Russian Empire: from 1721 The Russian Empire: from 1721

until the Russian Revolution of until the Russian Revolution of 1917. It was the successor to 1917. It was the successor to the Tsardom of Russia (Russian the Tsardom of Russia (Russian state between Ivan IV’s state between Ivan IV’s assumption of the title of Tsar assumption of the title of Tsar (Emperor) in 1547 and Peter (Emperor) in 1547 and Peter the Great's foundation of the the Great's foundation of the Russian Empire in 1721. , and Russian Empire in 1721. , and the predecessor of the Soviet the predecessor of the Soviet Union. It was the second Union. It was the second largest contiguous empire the largest contiguous empire the world had seen, surpassed only world had seen, surpassed only by the Mongol Empire. At one by the Mongol Empire. At one point in 1866, it stretched from point in 1866, it stretched from eastern Europe, across Asia, eastern Europe, across Asia, and into North America. At the and into North America. At the beginning of the 19th century, beginning of the 19th century, Russia was the largest country Russia was the largest country in the world, extending from in the world, extending from the Arctic Ocean to the north to the Arctic Ocean to the north to the Black Sea on the south, the Black Sea on the south, from the Baltic Sea on the west from the Baltic Sea on the west to the Pacific Ocean on the to the Pacific Ocean on the east. Across this vast realm east. Across this vast realm were scattered the Emperor's were scattered the Emperor's 176.4 million subjects, the third 176.4 million subjects, the third largest population of the world largest population of the world at the time, after Qing China at the time, after Qing China and British India, but still and British India, but still represented a great disparity in represented a great disparity in economic, ethnic, and religious economic, ethnic, and religious positions. Its government, ruled positions. Its government, ruled by the Emperor, was one of the by the Emperor, was one of the last absolute monarchies left in last absolute monarchies left in Europe. Prior to the outbreak of Europe. Prior to the outbreak of World War I in August 1914 World War I in August 1914 Russia was one of the five Russia was one of the five major Great Powers of Europe.major Great Powers of Europe.

Russia: From Peter the Grate to Revolutionary Russia: From Peter the Grate to Revolutionary MovementsMovements

Peter the Great and Russian Expansion (18th-19th Centuries) Peter the Great and Russian Expansion (18th-19th Centuries) After Russian independence from Mongols in 1452, isolationism and  feudal After Russian independence from Mongols in 1452, isolationism and  feudal

institutions.institutions. Early in 18th century, Peter the Great:Early in 18th century, Peter the Great: 1.      Introduced Western science, technology, art, and architecture. 1.      Introduced Western science, technology, art, and architecture. 2.      Moved capital to St. Petersburg.2.      Moved capital to St. Petersburg. 3.      Avoided Western political and economic philosophies.3.      Avoided Western political and economic philosophies. 4.      Levied heavy taxes and imposed forced labor.4.      Levied heavy taxes and imposed forced labor. 5.      Mounted territorial expansion and industrialization.5.      Mounted territorial expansion and industrialization. Emancipation and Industrialization (1853-1900)Emancipation and Industrialization (1853-1900) Long maintenance of Long maintenance of feudalismfeudalism thwarted Russian development, led to defeat in thwarted Russian development, led to defeat in

Crimean WarCrimean War (fought during 1853-1856 against the British and French, who were (fought during 1853-1856 against the British and French, who were protecting the Ottoman Empire from destruction by the Russians).protecting the Ottoman Empire from destruction by the Russians).

Emancipation Decree of 1861Emancipation Decree of 1861 nominally abolished serfdomnominally abolished serfdom 1.      Serfs freed from the arbitrary rule.1.      Serfs freed from the arbitrary rule. 2.      Land given to serfs, but:2.      Land given to serfs, but: a.       Better land kept by gentry. a.       Better land kept by gentry. b.      Serfs required to pay b.      Serfs required to pay redemption payments and taxes. redemption payments and taxes. c.       Land held collectively by village communes, responsible for tax collection and c.       Land held collectively by village communes, responsible for tax collection and

apportionment. Handled by inefficient strip agriculture.apportionment. Handled by inefficient strip agriculture. 3.      Tax and redemption payments forced agricultural sales and exports, 3.      Tax and redemption payments forced agricultural sales and exports,

monetizedmonetized the economy, and supported the economy, and supported railroad railroad construction boom, which construction boom, which supported production of supported production of iron, steel, and petroleumiron, steel, and petroleum

Emancipation and industrialization caused little improvement in the living Emancipation and industrialization caused little improvement in the living standards. Revolutionary movements beganstandards. Revolutionary movements began

The Russian Revolutions and World War I (1900-1918)The Russian Revolutions and World War I (1900-1918) Russian Social DemocratsRussian Social Democrats, first congresses in 1903 , first congresses in 1903

called for overthrow of monarchy and the adoption of called for overthrow of monarchy and the adoption of socialism. socialism.

MensheviksMensheviks—Russia not ready for socialism; party —Russia not ready for socialism; party should be mass organization. should be mass organization.

V.I. Lenin V.I. Lenin Bolsheviks—Russia was ripe for socialism; Bolsheviks—Russia was ripe for socialism; membership restricted to elite revolutionaries. membership restricted to elite revolutionaries.

1905 Revolution1905 Revolution—Bloody Sunday precipitated —Bloody Sunday precipitated demonstrations and general strike in October. Tsar demonstrations and general strike in October. Tsar granted formation of Duma, and Stolypin reforms granted formation of Duma, and Stolypin reforms helped agricultural peasants.helped agricultural peasants.

World War IWorld War I arose from Balkan struggle for arose from Balkan struggle for independence. independence.

In RussiaIn Russia, WWI exacted horrible price, led to , WWI exacted horrible price, led to food food riotsriots, forcing Tsar to abdicate. Kerensky’s , forcing Tsar to abdicate. Kerensky’s provisional provisional governmentgovernment acted slowly, was overthrown by acted slowly, was overthrown by Bolsheviks with little fighting in November 1917.Bolsheviks with little fighting in November 1917.

In Treaty of VersaillesIn Treaty of Versailles, 1919, regions of Habsburg , 1919, regions of Habsburg empire ceded to Serbian, Czech, and Polish controlempire ceded to Serbian, Czech, and Polish control

First Russian CommunismFirst Russian Communism

War Communism (1918-1921)War Communism (1918-1921) New Bolshevik leaders faced problems. New Bolshevik leaders faced problems. Promise of socialism.Promise of socialism. Consolidation of Bolshevik rule.Consolidation of Bolshevik rule. Allied invasion after 1918 Brest-Litovsk Treaty Allied invasion after 1918 Brest-Litovsk Treaty ProvisionsProvisions of War Communism of War Communism Confiscation of private and church land without compensation.   Confiscation of private and church land without compensation.   Forcibly extracted "surpluses" from agricultural workers. Forcibly extracted "surpluses" from agricultural workers. Goods and food rationed, private trade outlawed.  Goods and food rationed, private trade outlawed.  Most industrial enterprises nationalized and administered by Most industrial enterprises nationalized and administered by

commissariats headed by Vesenkha.  commissariats headed by Vesenkha.  "Labor armies" rebuilt roads and railways, and worked in mines."Labor armies" rebuilt roads and railways, and worked in mines. Performance Performance Production plummeted, arising from poor work incentives, Production plummeted, arising from poor work incentives,

concealment of surpluses, and chaotic management, but also from concealment of surpluses, and chaotic management, but also from wartime disruption.wartime disruption.

New Economic PolicyNew Economic Policy The New Economic Policy (1921-1928)The New Economic Policy (1921-1928)DesignDesign—a temporary experiment in market —a temporary experiment in market

socialismsocialism 1.      Progressive agricultural tax.1.      Progressive agricultural tax. 2.      Private trade was legalized.2.      Private trade was legalized. 3.      Small enterprises leased to entre preneurs 3.      Small enterprises leased to entre preneurs

and  larger enterprises operated as public and  larger enterprises operated as public trusts.  Only "the commanding heights of in trusts.  Only "the commanding heights of in dustry" were kept under direct governmental dustry" were kept under direct governmental control.  control. 

4.      Freer labor mobility, market-determined 4.      Freer labor mobility, market-determined wages, and pro-labor legislation.wages, and pro-labor legislation.

PerformancePerformance—After 1921, NEP supported rapid —After 1921, NEP supported rapid recovery, but with rising inequality. recovery, but with rising inequality.

The Industrialization DebateThe Industrialization Debate

The Industrialization DebateThe Industrialization Debate Stimulated by the Stimulated by the Scissors CrisisScissors Crisis and Lenin's death in 1924. and Lenin's death in 1924.Bukharin and "right-deviation" factionBukharin and "right-deviation" faction Continuation of the market-oriented policies of NEP, following Continuation of the market-oriented policies of NEP, following

comparative advantage in agriculture. comparative advantage in agriculture. Maintain Maintain smychkasmychka, or alliance, between agricultural and industrial , or alliance, between agricultural and industrial

workers. workers. Agricultural investments in the short run would most effectively Agricultural investments in the short run would most effectively

support industrial development in the long run.support industrial development in the long run.Trotsky, Preobrazhensky, and “left-deviation" factionTrotsky, Preobrazhensky, and “left-deviation" faction NEP will lead to return of capitalism NEP will lead to return of capitalism USSR, surrounded by enemies, needs heavy industry.USSR, surrounded by enemies, needs heavy industry. Industrialization accelerated by exploitation of the private sector Industrialization accelerated by exploitation of the private sector

and agriculture. and agriculture. Worldwide socialist revolution versus socialism in one countryWorldwide socialist revolution versus socialism in one country Planning debate—Planning debate—GeneticistsGeneticists versus versus teleologiststeleologists..

The Planning EraThe Planning Era

The Planning Era Begins (1929-1945)The Planning Era Begins (1929-1945) After vacillation, Stalin adopted a leftist and After vacillation, Stalin adopted a leftist and

teleological strategy. The First Five-Year Plan teleological strategy. The First Five-Year Plan called for rapid rates growth of all sectors, but called for rapid rates growth of all sectors, but highest for producer goods and lowest for highest for producer goods and lowest for agriculture. Fulfillment of the plan was even more agriculture. Fulfillment of the plan was even more leftist.leftist.

Falling agricultural production caused by low plan Falling agricultural production caused by low plan priority and violent collectivization. priority and violent collectivization. Industrialization strengthened the nation’s Industrialization strengthened the nation’s military stance, but eventually turned a major military stance, but eventually turned a major grain exporter into an importer.grain exporter into an importer.

After World War II (1945-1953)After World War II (1945-1953)After World War II (1945-1953)After World War II (1945-1953) From “capitalist encirclement,” and Soviet autarky, to the From “capitalist encirclement,” and Soviet autarky, to the

“socialist commonwealth.” “socialist commonwealth.” Adoption of Soviet-style systems throughout region (Iron Adoption of Soviet-style systems throughout region (Iron

Curtain).Curtain). Creation of Creation of Council for Mutual Economic AssistanceCouncil for Mutual Economic Assistance to to

answer the Marshall Plan. Redirection of trade. answer the Marshall Plan. Redirection of trade. East German, Romanian, and Hungarian reparations to USSR. East German, Romanian, and Hungarian reparations to USSR.

Tito's YugoslaviaTito's Yugoslavia Impact of WWII.Impact of WWII. Tito’s hero status.Tito’s hero status. Initial acceptance of Soviet political/economic system. Initial acceptance of Soviet political/economic system. Conflicts with Stalin, 1948 expulsion from Comintern. Conflicts with Stalin, 1948 expulsion from Comintern. Reversal in 1950—acceptance of  Western aid and adoption of Reversal in 1950—acceptance of  Western aid and adoption of

labor self-management.labor self-management.

After Stalin (1953-1960)After Stalin (1953-1960)

After Stalin (1953-1960)After Stalin (1953-1960) 1953 Stalin's death in 1953 1953 Stalin's death in 1953 1956 Khrushchev's denunciation of Stalin's terror  1956 Khrushchev's denunciation of Stalin's terror  Albanian schism Albanian schism Hungarian revolt crushed by Soviet troops Hungarian revolt crushed by Soviet troops Upgrading of CMEA Upgrading of CMEA 1962          Basic Principles of the International 1962          Basic Principles of the International

Socialist Division of Labor called for specialization Socialist Division of Labor called for specialization and integration of production.and integration of production.

Khrushchev’s abortive attempt to introduce Khrushchev’s abortive attempt to introduce supranational planning.supranational planning.

Early Reforms (1960-1970)Early Reforms (1960-1970)

Early Reforms (1960-1970)Early Reforms (1960-1970) A.      Soviet system inappropriate for small, trade-A.      Soviet system inappropriate for small, trade-

dependent countries. Hungary and Poland initiated  dependent countries. Hungary and Poland initiated  reforms. reforms.

B.      Deterioration of Soviet growth. Kosygin reforms of B.      Deterioration of Soviet growth. Kosygin reforms of mid-1960s. mid-1960s.

C.      Watershed in 1968— Prague Spring and Hungarian C.      Watershed in 1968— Prague Spring and Hungarian New Economic Mechanism.New Economic Mechanism.

XIII. Prelude to the Fall (1970-1985)XIII. Prelude to the Fall (1970-1985) 1970 Food price hikes in Poland lead to strikes, repression, 1970 Food price hikes in Poland lead to strikes, repression,

and resignation of Gomulka. and resignation of Gomulka. 1972 Nixon visits Moscow, launches détente.1972 Nixon visits Moscow, launches détente. 1976 Polish indebtedness culminates again in price hikes, 1976 Polish indebtedness culminates again in price hikes,

strikes, repression.strikes, repression. 1978  Selection of Polish pope. 1978  Selection of Polish pope. 1980 Birth of Solidarity trade union in Poland.1980 Birth of Solidarity trade union in Poland. 1981 Polish martial law.1981 Polish martial law.

The Dissolution of Soviet EmpireThe Dissolution of Soviet Empire

The End and the New Beginning (1985-1991)The End and the New Beginning (1985-1991) 1985 Mikhail Gorbachev takes office in the Soviet 1985 Mikhail Gorbachev takes office in the Soviet

Union, introduces Union, introduces glasnostglasnost (openness) and (openness) and perestroikaperestroika (restructuring), and repudiates (restructuring), and repudiates Brezhnev Doctrine.Brezhnev Doctrine.

1989 Mass demonstrations, destruction of Berlin 1989 Mass demonstrations, destruction of Berlin Wall, removal of Communist leaders throughout Wall, removal of Communist leaders throughout the region. the region.

1990 Balcerowicz “shock therapy” in Poland.1990 Balcerowicz “shock therapy” in Poland. 1991  Abortive coup against Gorbachev causes 1991  Abortive coup against Gorbachev causes

Russian President Yeltsin to suspend Communist Russian President Yeltsin to suspend Communist Party activities and Gorbachev to dissolve USSR.Party activities and Gorbachev to dissolve USSR.

1999 Vladimir Putin the New Zar of Russia1999 Vladimir Putin the New Zar of Russia 2008 Dmitrij Medvedev become Republic 2008 Dmitrij Medvedev become Republic

President of Russia. Putin Prime MinisterPresident of Russia. Putin Prime Minister

PART 2PART 2: : Overview on the energy policy in Overview on the energy policy in

EurasiaEurasia Is there a pipelines war in Eurasia? Is there a pipelines war in Eurasia? Recent events like the Recent events like the

conflict with Ukraine for the gas pipeline and the war conflict with Ukraine for the gas pipeline and the war against Georgia (where Russia is military presents in against Georgia (where Russia is military presents in Abkhazia and South Ossetia) show it. Russia from one end, Abkhazia and South Ossetia) show it. Russia from one end, USA from the other tries to control the Eurasian Strategic USA from the other tries to control the Eurasian Strategic Corridor. Iran, China and India are going to play a decisive Corridor. Iran, China and India are going to play a decisive role.role.

The geopolitic balance of the region is based, not (not The geopolitic balance of the region is based, not (not only) on religious or ethnic divisions, but on the energy only) on religious or ethnic divisions, but on the energy policy: oil and gas fields and wells, pipelines networks and policy: oil and gas fields and wells, pipelines networks and commercialization of raw materialscommercialization of raw materials

One of the most important problems of the Russian One of the most important problems of the Russian distribution gas network is the original, centralized distribution gas network is the original, centralized structure, following the Soviet Union philosophy. Instead, structure, following the Soviet Union philosophy. Instead, 90% of the Russian gas flow (Western Europe direction) 90% of the Russian gas flow (Western Europe direction) goes trough Ukrainegoes trough Ukraine

The Central and Eastern Europe Nations like Germany, The Central and Eastern Europe Nations like Germany, Austria, Italy, Baltic Countries, Czech Republic, Bulgaria, Austria, Italy, Baltic Countries, Czech Republic, Bulgaria, Slovakia, Poland, Serbia, Slovenia, Hungary needs to find Slovakia, Poland, Serbia, Slovenia, Hungary needs to find alternative routes to gas suppliesalternative routes to gas supplies

Geopolitical PipelinesGeopolitical Pipelines

Gas Exporting Countries Forum (GECF)Gas Exporting Countries Forum (GECF) The Gas Exporting Countries Forum (GECF) is an organization of The Gas Exporting Countries Forum (GECF) is an organization of

some of the world's leading gas producers. The members are some of the world's leading gas producers. The members are Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Iran, Libya, Malaysia, Nigeria, Qatar, Russia, Trinidad and Iran, Libya, Malaysia, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates and Venezuela. Kazakhstan Tobago, the United Arab Emirates and Venezuela. Kazakhstan and Norway are observersand Norway are observers

The GECF was established in Tehran in 2001. Until the seventh The GECF was established in Tehran in 2001. Until the seventh ministerial meeting in Moscow, it operated without charter and ministerial meeting in Moscow, it operated without charter and fixed membership structure. The seventh ministerial meeting, fixed membership structure. The seventh ministerial meeting, held on 23 December 2008 in Moscow, adapted the held on 23 December 2008 in Moscow, adapted the organization's charterorganization's charter

The objectives of the GECF are: to foster the concept of The objectives of the GECF are: to foster the concept of mutuality of interests by favouring dialogue between producers, mutuality of interests by favouring dialogue between producers, between producers and consumers and between governments between producers and consumers and between governments and energy-related industries; to provide a platform to promote and energy-related industries; to provide a platform to promote study and exchange of views; to promote a stable and study and exchange of views; to promote a stable and transparent energy markettransparent energy market

GECF does not have headquarters yet; Qatar's national oil GECF does not have headquarters yet; Qatar's national oil company Qatar Petroleum serves as a GECF Liaison Office. company Qatar Petroleum serves as a GECF Liaison Office. Although Russia's Prime Minister Vladimir Putin offered to give Although Russia's Prime Minister Vladimir Putin offered to give GECF full diplomatic status in a location in St. Petersburg, it was GECF full diplomatic status in a location in St. Petersburg, it was decided on 23 December 2008 to set up an Executive Office and decided on 23 December 2008 to set up an Executive Office and a Secretariat in Doha, Qatar. The Secretary General will be a Secretariat in Doha, Qatar. The Secretary General will be elected on the eight ministerial meetingelected on the eight ministerial meeting

OIL PRODUCTION IN THE WORLDOIL PRODUCTION IN THE WORLDNUMBERNUMBER COUNTRYCOUNTRY OIL DRUMS (MILLION PER YEAR) OIL DRUMS (MILLION PER YEAR) % ON TOTAL% ON TOTAL

11 Arabia SauditaArabia Saudita 264.300264.300 21,921,9

22 IranIran 137.500137.500 11,411,4

33 IraqIraq 115.000115.000 9,59,5

44 KuwaitKuwait 101.500101.500 8,48,4

55 Emirati Arabi UnitiEmirati Arabi Uniti 97.80097.800 8,18,1

66 VenezuelaVenezuela 80.00080.000 6,66,6

77 RussiaRussia 79.50079.500 6,66,6

88 LibiaLibia 41.50041.500 3,53,5

99 KazakhstanKazakhstan 39.80039.800 3,33,3

1010 NigeriaNigeria 36.20036.200 3,03,0

1111 USAUSA 29.90029.900 2,52,5

1212 CanadaCanada 17.10017.100 1,41,4

1313 CinaCina 16.30016.300 1,31,3

1414 QatarQatar 15.20015.200 1,21,2

1515 MessicoMessico 12.90012.900 1,11,1

1616 AlgeriaAlgeria 12.30012.300 1,01,0

1717 BrasileBrasile 12.20012.200 1,01,0

1818 AngolaAngola 9.0009.000 0,70,7

1919 NorvegiaNorvegia 8.5008.500 0,70,7

2020 AzerbaijanAzerbaijan 7.0007.000 0,60,6

2121 Resto del MondoResto del Mondo 74.70074.700 6,26,2

Tot.Tot. 1.208.2001.208.200 100%100%

GAS PRODUCTION AND RESERVESGAS PRODUCTION AND RESERVES NUMBERNUMBER COUNTRYCOUNTRY GAS (BILLION CUBIC METRE PER GAS (BILLION CUBIC METRE PER

YEAR) YEAR) RESERVES (BILLION CUBIC METRE)RESERVES (BILLION CUBIC METRE)

11 RussiaRussia 607,67 607,67 48.00048.000

22 Stati UnitiStati Uniti 526,51526,51 5.3535.353

33 CanadaCanada 178,35178,35 1.6031.603

44 United KingdomUnited Kingdom 103,75103,75 905905

55 AlgeriaAlgeria 95,1295,12 4.5454.545

66 NorvegiaNorvegia 84,9684,96 3.1883.188

77 IraqIraq 83,2083,20 3.0803.080

88 IndonesiaIndonesia 82,7682,76 2.5572.557

99 IranIran 81,9981,99 26.50026.500

1010 NederlandsNederlands 74,2074,20 1.4921.492

1111 Arabia SauditaArabia Saudita 63,9963,99 6.6546.654

1212 UzbekistanUzbekistan 58,0158,01 1.8601.860

1313 TurkmenistanTurkmenistan 57,3157,31 2.9002.900

1414 MalesiaMalesia 52,6952,69 2.4642.464

1515 CinaCina 51,1951,19 1.8231.823

1616 Emirati Arabi UnitiEmirati Arabi Uniti 45,2245,22 6.6546.654

1717 QatarQatar 40,3940,39 25.78325.783

1818 AustraliaAustralia 40,0740,07 2.5482.548

1919 EgittoEgitto 30,8130,81 1.7561.756

2020 VenezuelaVenezuela 29.3929.39 4.2234.223

2121 KazakistanKazakistan 21,8721,87 1.9001.900

2222 NigeriaNigeria 20,8120,81 5.0555.055

Dependence Upon Russian Natural Gasby Selected European Countries

Natural Gas Imports from RussiaQuantity (billion cu. ft./yr) % of Domestic Consumption

Germany 1,290 39% Italy 855 31% Turkey 506 65% France 406 24% Austria 212 69% Poland 212 43% Netherlands 94 6% Greece 78 82% Sweden 39 Zero or less than 0.5%

Belgium 7 1% Denmark Zero or less than 500 million cubic feet Zero or less than 0.5%

Ireland Zero or less than 500 million cubic feet Zero or less than 0.5%

Portugal Zero or less than 500 million cubic feet Zero or less than 0.5%

Spain Zero or less than 500 million cubic feet Zero or less than 0.5%

United Kingdom Zero or less than 500 million cubic feet Zero or less than 0.5%

Dependence Upon Russian Natural Gasby Selected Former Soviet and Soviet Satellite Countries

COUNTRY BILLION CUBIC FEET % OF DOMESTIC CONSUMPTION Ukraine 850 35% Belarus 698 99% Hungary 318 64% Czech Republic 253 77% Slovakia 226 99% Poland 212 43% Finland 163 98% Romania 138 22% Lithuania 103 100% Bulgaria 99 99% Moldova 77 100% Latvia 62 100% Georgia 39 100% Estonia 34 100% Slovenia 20 52%

Japan 85%

Oilpipelines and Gaspipelines in Russia, European Union and Oilpipelines and Gaspipelines in Russia, European Union and Middle-EastMiddle-East

Naftohaz UkrainyNaftohaz Ukrainy:: Ukraine Ukraine Pipeline. Pipeline. According to the According to the contract on 21 June 2002, contract on 21 June 2002, signed between Gazprom signed between Gazprom and Naftohaz, the payment and Naftohaz, the payment for the transfer of Russian for the transfer of Russian natural gas through natural gas through Ukrainian pipeline system Ukrainian pipeline system had been made in the form had been made in the form of barter exchange – up to of barter exchange – up to 15% of gas pumped through 15% of gas pumped through the Ukrainian territory was the Ukrainian territory was taken by Ukraine instead of taken by Ukraine instead of payments in cash. This payments in cash. This contract was supposed to be contract was supposed to be valid until the end of 2013valid until the end of 2013

Betransgaz: Betransgaz: On May 18, On May 18, 2007, in Minsk, Russia’s 2007, in Minsk, Russia’s Gazprom and the Belarus Gazprom and the Belarus government’s State Property government’s State Property Committee signed Committee signed agreements to turn the agreements to turn the Belarus state-owned gas Belarus state-owned gas pipeline company pipeline company Beltransgaz into a Russia-Beltransgaz into a Russia-Belarus joint company. Belarus joint company. Betransgaz handles both the Betransgaz handles both the transit of Russian gas to transit of Russian gas to European Union countries European Union countries and the internal distribution and the internal distribution of Russian gas in Belarus.of Russian gas in Belarus.

Gas PipelinesGas Pipelines

Routes of the pipelines from Russia to EuropeRoutes of the pipelines from Russia to Europe

Alternative Routes to UkraineAlternative Routes to Ukraine Yamal-EuropeYamal-Europe pipelineThe planning of the Yamal-Europe pipeline started in 1992. pipelineThe planning of the Yamal-Europe pipeline started in 1992.

Intergovernmental agreements between Russia, Belarus and Poland were signed in 1993. In Intergovernmental agreements between Russia, Belarus and Poland were signed in 1993. In 1994, Wingas, the joint venture of Gazprom and Wintershall, a subsidiary of BASF, started 1994, Wingas, the joint venture of Gazprom and Wintershall, a subsidiary of BASF, started building the German section of the pipeline. The first gas was delivered to Germany through building the German section of the pipeline. The first gas was delivered to Germany through the Belarus-Polish corridor in 1997. The Belarusian and Polish sections were completed in the Belarus-Polish corridor in 1997. The Belarusian and Polish sections were completed in September 1999 and the pipeline reached its rated annual capacity of about 33 billion cubic September 1999 and the pipeline reached its rated annual capacity of about 33 billion cubic meters of natural gas in 2005, after completion of all compressor stations.meters of natural gas in 2005, after completion of all compressor stations.

Blue StreamBlue Stream (IGIT Pipeline) is a major trans-Black Sea gas pipeline that carries natural gas (IGIT Pipeline) is a major trans-Black Sea gas pipeline that carries natural gas from Russia into Turkey. The pipeline has been constructed by the Blue Stream Pipeline B.V., from Russia into Turkey. The pipeline has been constructed by the Blue Stream Pipeline B.V., the Netherlands based joint venture of Russian Gazprom and Italian Eni. The Blue Stream the Netherlands based joint venture of Russian Gazprom and Italian Eni. The Blue Stream Pipeline B.V. is an owner of the subsea section of pipeline, including Beregovaya compressor Pipeline B.V. is an owner of the subsea section of pipeline, including Beregovaya compressor station, while Gazprom owns and operates the Russian land section of the pipeline and the station, while Gazprom owns and operates the Russian land section of the pipeline and the Turkish land section is owned and operated by the Turkish energy company BOTAŞ. According Turkish land section is owned and operated by the Turkish energy company BOTAŞ. According to Gazprom the pipeline was built with the intent of diversifying Russian gas delivery routes to to Gazprom the pipeline was built with the intent of diversifying Russian gas delivery routes to Turkey and avoiding third countries.Turkey and avoiding third countries.

BetransgazBetransgaz On May 18, 2007, in Minsk, Russia’s Gazprom and the Belarus government’s On May 18, 2007, in Minsk, Russia’s Gazprom and the Belarus government’s State Property Committee signed agreements to turn the Belarus state-owned gas pipeline State Property Committee signed agreements to turn the Belarus state-owned gas pipeline company Beltransgaz into a Russia-Belarus joint company. Betransgaz handles both the transit company Beltransgaz into a Russia-Belarus joint company. Betransgaz handles both the transit of Russian gas to European Union countries and the internal distribution of Russian gas in of Russian gas to European Union countries and the internal distribution of Russian gas in Belarus.Belarus.

NabuccoNabucco pipeline is a planned natural gas pipeline that will transport natural gas from Turkey pipeline is a planned natural gas pipeline that will transport natural gas from Turkey to Austria, via Bulgaria, Romania, and Hungary. It will run from Erzurum in Turkey to to Austria, via Bulgaria, Romania, and Hungary. It will run from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria. This pipeline is a diversion from Baumgarten an der March, a major natural gas hub in Austria. This pipeline is a diversion from the current methods of importing natural gas solely from Russia. The project is backed by the current methods of importing natural gas solely from Russia. The project is backed by several European Union states and the United States.several European Union states and the United States.

Nord StreamNord Stream North Transgas and North European Gas Pipeline; also known as the Russo–North Transgas and North European Gas Pipeline; also known as the Russo–German gas pipeline or the Baltic Sea gas pipeline) is a planned natural gas pipeline from German gas pipeline or the Baltic Sea gas pipeline) is a planned natural gas pipeline from Russia to Germany by the company Nord Stream AG Russia to Germany by the company Nord Stream AG

Alternative Routes To UkraineAlternative Routes To Ukraine

Nabucco Pipeline Project In DetailNabucco Pipeline Project In Detail

Baltic Pipeline Project In DetailBaltic Pipeline Project In Detail

Geopolitical Pipelines – Alternative Routes out of Geopolitical Pipelines – Alternative Routes out of

Russian ControlRussian Control GUAM-NATO AllianceGUAM-NATO Alliance

PipelinePipeline Odessa-Brody-Plotsk ( Odessa-Brody-Plotsk (OBPOBP) from Ukraine ) from Ukraine to Poloniato Polonia

PipelinePipeline Bakou Tbilisi Ceyhan ( Bakou Tbilisi Ceyhan (BTCBTC) from Caspian ) from Caspian Sea to Mediterranean and TurkeySea to Mediterranean and Turkey

ProjectProject of Submarine Pipeline Trans-Israël-Eilat- of Submarine Pipeline Trans-Israël-Eilat-Ashkelon (Ashkelon (TIEATIEA) from Caspian Sea to Israel) from Caspian Sea to Israel

ProjectProject TRACECATRACECA, Silk Road Stategy (SRS), a , Silk Road Stategy (SRS), a multichannel Corridor Europe, Caucasus, Asiamultichannel Corridor Europe, Caucasus, Asia

Kazakhstan-Chine PipelineKazakhstan-Chine Pipeline ( (KCPKCP), a gas pipeline ), a gas pipeline from Kazakhstan to Autonomous Region of from Kazakhstan to Autonomous Region of XinjianXinjian

The Odessa-Brody-Plotsk (The Odessa-Brody-Plotsk (OBPOBP) Pipeline) Pipeline

The Baku Tblisi Ceyan (BTC) PipelineThe Baku Tblisi Ceyan (BTC) Pipeline

Project of Submarine Pipeline Trans-Israël-Eilat-Project of Submarine Pipeline Trans-Israël-Eilat-Ashkelon (Ashkelon (TIEATIEA) from Caspian Sea to Israel) from Caspian Sea to Israel

IsraelIsrael is now part of the Anglo- is now part of the Anglo-American military axis, which serves American military axis, which serves the interests of the Western oil giants the interests of the Western oil giants in the Middle East and Central Asia. in the Middle East and Central Asia. Not surprisingly, Israel has military Not surprisingly, Israel has military cooperation agreements with Georgia cooperation agreements with Georgia and Azerbaijanand Azerbaijan

an underwater Israeli-Turkish an underwater Israeli-Turkish pipelinepipeline project has been envisaged project has been envisaged which would link Ceyhan to the Israeli which would link Ceyhan to the Israeli port of Ashkelon and from there port of Ashkelon and from there through Israel's main pipeline system, through Israel's main pipeline system, to the Red Seato the Red Sea

The objective of Israel is not only to The objective of Israel is not only to acquire Caspian sea oil for its own acquire Caspian sea oil for its own consumption needs but also to play a consumption needs but also to play a key role in re-exporting Caspian sea key role in re-exporting Caspian sea oil back to the Asian markets through oil back to the Asian markets through the Red Sea port of Eilat. The strategic the Red Sea port of Eilat. The strategic implications of this re-routing of implications of this re-routing of Caspian sea oil are far reachingCaspian sea oil are far reaching

Kazakhstan-Chine PipelineKazakhstan-Chine Pipeline (KCP)(KCP)

LNG (Liquefied Natural Gas) - Russia’s New Energy Blackmail LNG (Liquefied Natural Gas) - Russia’s New Energy Blackmail Tool, a Russia’s New Energy WeaponTool, a Russia’s New Energy Weapon

Putin was the Putin was the architect of Russia’s architect of Russia’s use of energy as a use of energy as a foreign policy tool. foreign policy tool. He is now He is now threatening to use threatening to use Liquefied Natural Liquefied Natural Gas (LNG) as Gas (LNG) as Russia’s new energy Russia’s new energy weapon. In essence, weapon. In essence, this will be utilized this will be utilized as a means of as a means of coercing the EU in coercing the EU in order to achieve de order to achieve de facto recognition of a facto recognition of a Russian “sphere of Russian “sphere of influence” within the influence” within the former Soviet Union.former Soviet Union.

Part 3Part 3: : Russia-Ukraine, The Pipeline War Russia-Ukraine, The Pipeline War Case StudyCase Study

One of the most important problemsOne of the most important problems of the Russian distribution gas network is the original, of the Russian distribution gas network is the original, centralized structure, following the Soviet Union philosophy. Instead, centralized structure, following the Soviet Union philosophy. Instead, 90%90% of the Russian gas flow of the Russian gas flow (Western Europe direction) goes trough Ukraine(Western Europe direction) goes trough Ukraine

December 2005December 2005, , The disputes came to a head for the first time in 2005, when the Russian The disputes came to a head for the first time in 2005, when the Russian government-controlled gas supplier Gazprom and Ukrainian national gas company Naftohaz government-controlled gas supplier Gazprom and Ukrainian national gas company Naftohaz Ukrainy failed to reach an agreement on gas prices (Political Price for Ex Sovietic Republic 50 $ -Ukrainy failed to reach an agreement on gas prices (Political Price for Ex Sovietic Republic 50 $ -1000 cubic metre; Market Price 240$)1000 cubic metre; Market Price 240$)

On January 1, 2006On January 1, 2006, Russia cut off its gas supply to Ukraine. The flow was restored just three days , Russia cut off its gas supply to Ukraine. The flow was restored just three days later when an agreement was reached (95 $ for 1000 cubic metre, but the relationship between the later when an agreement was reached (95 $ for 1000 cubic metre, but the relationship between the two countries remained tense about Krimea (Russian Navy) and during the Georgia’s War two countries remained tense about Krimea (Russian Navy) and during the Georgia’s War

The latest disputeThe latest dispute began when Gazprom officials made statements on Russian television saying began when Gazprom officials made statements on Russian television saying Ukraine had neither paid its gas debt owed to Russia, nor signed a gas supply contract for 2009. Ukraine had neither paid its gas debt owed to Russia, nor signed a gas supply contract for 2009. During December 2008 Ukrainian President Victor Yushchenko and Russian President Dmitry During December 2008 Ukrainian President Victor Yushchenko and Russian President Dmitry Medvedev traded barbs over the claims. Yushchenko denied reports Ukraine was in debt of close to Medvedev traded barbs over the claims. Yushchenko denied reports Ukraine was in debt of close to $1.6 billion, indicating that the figure was much less, while President Medvedev warned that $1.6 billion, indicating that the figure was much less, while President Medvedev warned that Russia would use its "entire arsenal of possibilities" if Ukraine did not pay its full debtRussia would use its "entire arsenal of possibilities" if Ukraine did not pay its full debt

Unable to resolve the disputeUnable to resolve the dispute, Russia cut off its gas supply to Ukraine on New Year's Day 2009, Russia cut off its gas supply to Ukraine on New Year's Day 2009 On Jan. 7On Jan. 7, one week after the initial cut-off, the pipelines to Europe stopped flowing, one week after the initial cut-off, the pipelines to Europe stopped flowing Finally, on Jan. 20Finally, on Jan. 20, Russia's gas supply to Europe was restored after an agreement was reached by , Russia's gas supply to Europe was restored after an agreement was reached by

Russian Prime Minister Vladimir Putin and Ukranian Prime Minister Yulia Tymoshenko. The new Russian Prime Minister Vladimir Putin and Ukranian Prime Minister Yulia Tymoshenko. The new agreement stated that Ukraine would not raise the fee for Russian gas transit, and Ukraine would agreement stated that Ukraine would not raise the fee for Russian gas transit, and Ukraine would receive a 20 percent discount on the basic price for gasreceive a 20 percent discount on the basic price for gas

Russia is currently experiencingRussia is currently experiencing a recession in most sectors of the economy, and Ukraine, which a recession in most sectors of the economy, and Ukraine, which has fewer natural resources, had a 20 percent decline in national production in late 2008. The has fewer natural resources, had a 20 percent decline in national production in late 2008. The damages incurred on each side during the latest gas dispute are undoubtedly major blows to both damages incurred on each side during the latest gas dispute are undoubtedly major blows to both wounded economieswounded economies

The European Commission and UkraineThe European Commission and Ukraine (March, 2009) signed a joint declaration on the (March, 2009) signed a joint declaration on the modernization of Ukraine's gas pipeline network. The Commission estimated the cost of the modernization of Ukraine's gas pipeline network. The Commission estimated the cost of the necessary improvements at 2.5 billion euros ($3.4 billion),necessary improvements at 2.5 billion euros ($3.4 billion), Russia is readyRussia is ready to participate in and to participate in and partially finance the modernization of Ukraine's natural gas pipeline system but underiline that The partially finance the modernization of Ukraine's natural gas pipeline system but underiline that The modernization of Ukraine's gas transportation system could cost $16 billion, not the some $3 modernization of Ukraine's gas transportation system could cost $16 billion, not the some $3 billion suggested by European Commission expertsbillion suggested by European Commission experts

UkraineUkraine

UkraineUkraine is bordered by is bordered by RussiaRussia to the east; to the east; BelarusBelarus to the north; to the north; PolandPoland, , SlovakiaSlovakia, and , and HungaryHungary to the west; to the west; RomaniaRomania and and MoldovaMoldova to the southwest; and the to the southwest; and the Black SeaBlack Sea and and Sea AzovSea Azov to the south. The city of to the south. The city of KievKiev ( (KyivKyiv) is both the capital and the largest city of ) is both the capital and the largest city of UkraineUkraine

UkraineUkraine is subdivided into twenty-four is subdivided into twenty-four oblastsoblasts ( (provincesprovinces) and one autonomous ) and one autonomous republic, Crimea. Additionally, the cities of republic, Crimea. Additionally, the cities of KievKiev, the capital, and , the capital, and SevastopolSevastopol, both have a , both have a special legal status. The 24 oblasts and special legal status. The 24 oblasts and CrimeaCrimea are subdivided into 490 are subdivided into 490 raionsraions ( (districtsdistricts), or ), or second-level administrative units. The average area of a Ukrainian raion is 1,200 square second-level administrative units. The average area of a Ukrainian raion is 1,200 square kilometres (460 sq mi); the average population of a raion is 52,000 people.kilometres (460 sq mi); the average population of a raion is 52,000 people.

Major Ukrainian Parties and BlocsMajor Ukrainian Parties and Blocs The Party of RegionsThe Party of Regions was created in March 2001. The party ideologically was created in March 2001. The party ideologically

defends and upholds the rights of ethnic Russians and speakers of the defends and upholds the rights of ethnic Russians and speakers of the Russian language in Ukraine. It originally supported president Leonid Russian language in Ukraine. It originally supported president Leonid Kuchma and joined the pro-government United Ukraine alliance during the Kuchma and joined the pro-government United Ukraine alliance during the parliamentary elections on 30 March 2002. The party's leader is former parliamentary elections on 30 March 2002. The party's leader is former Ukrainian Prime Minister Ukrainian Prime Minister Viktor YanukovychViktor Yanukovych. The areas the Party of . The areas the Party of Regions does well in are mostly parts of historic Novorossiya. Its electoral Regions does well in are mostly parts of historic Novorossiya. Its electoral and financial base is located primarily in the and financial base is located primarily in the east and south-east of east and south-east of UkraineUkraine, where it enjoys wide popular support. In the Eastern Ukrainian , where it enjoys wide popular support. In the Eastern Ukrainian Donetsk Oblast the party claims to have over 700,000 members.Donetsk Oblast the party claims to have over 700,000 members.

Bloc Yuliya TymoshenkoBloc Yuliya Tymoshenko is the name of the bloc of political parties in is the name of the bloc of political parties in Ukraine led by Ukraine led by Yulia TymoshenkoYulia Tymoshenko Although the party attracts most of its Although the party attracts most of its voters from Western Ukrainian, Ukrainian speaking provinces (Oblasts) it voters from Western Ukrainian, Ukrainian speaking provinces (Oblasts) it has in recent years recruited several politicians from Russian speaking has in recent years recruited several politicians from Russian speaking provinces like Crimea (Lyudmyla Denisova) and Luhansk Oblast (Natalia provinces like Crimea (Lyudmyla Denisova) and Luhansk Oblast (Natalia Korolevska)Korolevska)

Our Ukraine–People's Self-Defense BlocOur Ukraine–People's Self-Defense Bloc is an electoral alliance active in is an electoral alliance active in Ukraine, associated with President Viktor Yushchenko. Since 2005, the Ukraine, associated with President Viktor Yushchenko. Since 2005, the bloc has been dominated by a core consisting of the People's Union bloc has been dominated by a core consisting of the People's Union "OurUkraine" party and five smaller partner parties. The Our Ukraine Bloc "OurUkraine" party and five smaller partner parties. The Our Ukraine Bloc is most closely associated with the is most closely associated with the Orange RevolutionOrange Revolution and continues to and continues to use orange as its political colour. In July 2007, the old Our Ukraine bloc use orange as its political colour. In July 2007, the old Our Ukraine bloc had been reorganized into the Our Ukraine–People's Self-Defense Bloc for had been reorganized into the Our Ukraine–People's Self-Defense Bloc for the 2007 parliamentary election in September 2007. The member parties the 2007 parliamentary election in September 2007. The member parties had planned to merge into a single party in December 2007 but on had planned to merge into a single party in December 2007 but on November 16, 2007 People’s Self-Defense decided to end its participation November 16, 2007 People’s Self-Defense decided to end its participation in the process of forming a united party since then that process is unclear. in the process of forming a united party since then that process is unclear. The alliance currently holds 72 out of 450 parliamentary seats.The alliance currently holds 72 out of 450 parliamentary seats.

Oil and gas companies of UkraineOil and gas companies of Ukraine

Naftohaz UkrainyNaftohaz Ukrainy is the state company of Ukraine concerned with extraction, is the state company of Ukraine concerned with extraction, transportation, and refinement of natural gas and crude oil. The company is also transportation, and refinement of natural gas and crude oil. The company is also active in Egypt and in the United Arab Emiratesactive in Egypt and in the United Arab Emirates

JSC Nadra Group, JSC Nadra Group, specialising in oil and gas exploration and production, and water specialising in oil and gas exploration and production, and water purification equipmentpurification equipment

JSC Nikopol Pipeline Fitting PlantJSC Nikopol Pipeline Fitting Plant, manufacturer of pressure gates and check , manufacturer of pressure gates and check valves for petrochemical and water/steam applications, located in the valves for petrochemical and water/steam applications, located in the Dnipopetrovsk regionDnipopetrovsk region

JSC Sumy Frunze NPOJSC Sumy Frunze NPO, Manufacturer of Equipment for the Oil, Gas, and Chemical , Manufacturer of Equipment for the Oil, Gas, and Chemical Industries, located in Sumy, UkraineIndustries, located in Sumy, Ukraine

The Deane GroupThe Deane Group, provides consultancy and business services to companies , provides consultancy and business services to companies operating within the oil and gas industry in Ukraine and to foreign or Ukrainian operating within the oil and gas industry in Ukraine and to foreign or Ukrainian companies wishing to establish new oil/gas-related businesses in Ukraine. The companies wishing to establish new oil/gas-related businesses in Ukraine. The Company has particular expertise and experience in Ukraine's oil and gas sector Company has particular expertise and experience in Ukraine's oil and gas sector and offers advice and services in areas such as oil/gas business strategy and offers advice and services in areas such as oil/gas business strategy development, investment project development, business and political analysis, development, investment project development, business and political analysis, government and external relations, and corporate representation. Through its government and external relations, and corporate representation. Through its network of Associates, the Company can provide expert and informed comment network of Associates, the Company can provide expert and informed comment and advice on all areas of Ukraine's fuel and energy complexand advice on all areas of Ukraine's fuel and energy complex

Ukrainian Petroleum and Energy ConsultantsUkrainian Petroleum and Energy Consultants, leading information resource in the , leading information resource in the oil and gas sector of Ukraineoil and gas sector of Ukraine

RussiaRussia RussiaRussia is a is a semi-presidentialsemi-presidential republicrepublic comprising 83  comprising 83 federal subjectsfederal subjects. .

Russia shares land borders with the following countries: Russia shares land borders with the following countries: NorwayNorway, Finland, , Finland, Estonia, Latvia, Lithuania (via Kaliningrad Oblast), Poland (via Kaliningrad Estonia, Latvia, Lithuania (via Kaliningrad Oblast), Poland (via Kaliningrad Oblast), Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Oblast), Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia and the Democratic People's Republic of Korea. At Mongolia and the Democratic People's Republic of Korea. At 17,075,400 square kilometres (6,592,800 sq mi), Russia is by far the 17,075,400 square kilometres (6,592,800 sq mi), Russia is by far the largest country in the world, covering more than an eighth of the Earth’s largest country in the world, covering more than an eighth of the Earth’s land area; with 142 million people, it is the ninth largest by populationland area; with 142 million people, it is the ninth largest by population

RussiaRussia is a federation and formally a semi-presidential republic, is a federation and formally a semi-presidential republic, where in the President is the head of state and the Prime Minister where in the President is the head of state and the Prime Minister is the head of government. The Russian Federation is is the head of government. The Russian Federation is fundamentally structured as a representative democracy. fundamentally structured as a representative democracy. Executive power is exercised by the government.[90] Legislative Executive power is exercised by the government.[90] Legislative power is vested in the two chambers of the Federal Assembly. The power is vested in the two chambers of the Federal Assembly. The government is regulated by a system of checks and balances government is regulated by a system of checks and balances defined by the Constitution of the Russian Federation, which defined by the Constitution of the Russian Federation, which serves as the country's supreme legal document and as a social serves as the country's supreme legal document and as a social contract for the people of the Russian Federationcontract for the people of the Russian Federation

Major Russian PartiesMajor Russian Parties United RussiaUnited Russia the major political party in the Russian Federation. United Russia the major political party in the Russian Federation. United Russia

supports President supports President Dmitry MedvedevDmitry Medvedev, and is currently the largest political party in , and is currently the largest political party in the Russian Federation. On April 15, 2008, the Russian Federation. On April 15, 2008, Vladimir PutinVladimir Putin (Prime Minister) (Prime Minister) accepted the nomination to become chairman of the partyaccepted the nomination to become chairman of the party

Communist Party of the Russian FederationCommunist Party of the Russian Federation is a Russian political party under is a Russian political party under the leadership of the leadership of Gennady ZyuganovGennady Zyuganov. It is sometimes seen as a successor to the . It is sometimes seen as a successor to the Communist Party of the Soviet Union (CPSU) and the Bolshevik PartyCommunist Party of the Soviet Union (CPSU) and the Bolshevik Party

Liberal Democratic Party of RussiaLiberal Democratic Party of Russia has been led by has been led by Vladimir ZhirinovskyVladimir Zhirinovsky almost since its founding, in 1989, as the Liberal Democratic Party of the Soviet almost since its founding, in 1989, as the Liberal Democratic Party of the Soviet Union. The LDPR describes itself as a centrist, pro-reform democratic party. The Union. The LDPR describes itself as a centrist, pro-reform democratic party. The programme of the party calls for democracy and social liberalism. Despite the programme of the party calls for democracy and social liberalism. Despite the name, a widespread opinion in the West is that the party's ideology is not liberal name, a widespread opinion in the West is that the party's ideology is not liberal and it is often regarded, especially in external media, as an ultranationalist party. and it is often regarded, especially in external media, as an ultranationalist party. The LDPR states that its main political opponents are Yabloko and the Communist The LDPR states that its main political opponents are Yabloko and the Communist Party of the Russian Federation (CPRF). It describes itself as an opposition party Party of the Russian Federation (CPRF). It describes itself as an opposition party however its deputies hardly ever voted against the Putin governmenthowever its deputies hardly ever voted against the Putin government

Fair RussiaFair Russia formed on 28 October 2006 as a merger of Rodina, the Russian Party formed on 28 October 2006 as a merger of Rodina, the Russian Party of Life and the Russian Pensioners' Party. First party chairman of Life and the Russian Pensioners' Party. First party chairman Sergey Mironov,Sergey Mironov, the chairman of the Federationthe chairman of the Federation

Oil and gas companies of RussiaOil and gas companies of Russia

GazpromGazprom, is the world's biggest gas exploration and , is the world's biggest gas exploration and production companyproduction company

Gazflot,Gazflot, russian exploration and ship owning company russian exploration and ship owning company JSC Gazprom NeftJSC Gazprom Neft, is one of the largest oil and gas , is one of the largest oil and gas

producing companies in Russiaproducing companies in Russia LukoilLukoil, is Russia's leading oil company, is Russia's leading oil company RosneftRosneft, russian oil and gas exploration company , russian oil and gas exploration company

((bought Yukosbought Yukos)) Sevmorneftegaz, CJSCSevmorneftegaz, CJSC, Development of oil and gas , Development of oil and gas

fields on Russia’s Arctic continental shelffields on Russia’s Arctic continental shelf SibneftSibneft, , petroleum exploration, production, refining, petroleum exploration, production, refining,

and marketing and marketing

Russia–Ukraine recent relationsRussia–Ukraine recent relations

Ukraine'sUkraine's recent attempts to joint the EU and NATO was seen as change of course to only a recent attempts to joint the EU and NATO was seen as change of course to only a pro-Western, anti-Russian orientiation of Ukraine and thus a sign of hostility and this resulted pro-Western, anti-Russian orientiation of Ukraine and thus a sign of hostility and this resulted in a drop of Ukraine's perception in Russiain a drop of Ukraine's perception in Russia

The statusThe status of the Russian of the Russian Black Sea FleetBlack Sea Fleet in Sevastopol remains a matter of disagreement in Sevastopol remains a matter of disagreement and tensions. During the 2008 South Ossetia war relations with Russia also deteriorated over and tensions. During the 2008 South Ossetia war relations with Russia also deteriorated over the new rules for the Russian Black Sea Fleet to obtain permission when crossing the the new rules for the Russian Black Sea Fleet to obtain permission when crossing the Ukrainian border, which Russia refused to comply with.Ukrainian border, which Russia refused to comply with.

In February 2008In February 2008 Russia unilaterally withdrew from the Ukrainian-Russian Russia unilaterally withdrew from the Ukrainian-Russian intergovernmental agreement on intergovernmental agreement on SPRNSPRN signed in 1997. signed in 1997. The The SRPN-2 PrognozSRPN-2 Prognoz programme, programme, commonly known as just commonly known as just PrognozPrognoz, is a Russian, previously Soviet, missile defence early , is a Russian, previously Soviet, missile defence early warning programmewarning programme

During the 2008 South Ossetia warDuring the 2008 South Ossetia war, relations between Ukraine and Russia deteriored, , relations between Ukraine and Russia deteriored, due to Ukraine's support of Georgia's territorial integrity and selling of arms to Georgia. due to Ukraine's support of Georgia's territorial integrity and selling of arms to Georgia. Further disagreements over position on Georgia and relations with Russia were among the Further disagreements over position on Georgia and relations with Russia were among the issues (issues (Domestic CrisesDomestic Crises) that brought down the Our Ukraine-Peoples Self Defence + Bloc ) that brought down the Our Ukraine-Peoples Self Defence + Bloc Yulia Tymoshenko coalition in the Ukrainian parliament during September 2008 (on Yulia Tymoshenko coalition in the Ukrainian parliament during September 2008 (on December 16, 2008 the coalition did remerge with a new coalition partner, the Lytvyn BlocDecember 16, 2008 the coalition did remerge with a new coalition partner, the Lytvyn Bloc

RussiaRussia is heavily opposed to Ukraine and Georgia becoming members of NATO. NATO is heavily opposed to Ukraine and Georgia becoming members of NATO. NATO Summit (April, 2008) denied the Membership to Ukraine and Georgia.Summit (April, 2008) denied the Membership to Ukraine and Georgia. Russia, naturally, Russia, naturally, approved this decisionapproved this decision

January 2009,January 2009, dispute about natural gas prices. The war of pipelines. Relations further dispute about natural gas prices. The war of pipelines. Relations further deteriorated deteriorated

EURASIA GAS AND OIL PIPELINESEURASIA GAS AND OIL PIPELINESACTORS ABLE TO INFLUENCE THE REGIONACTORS ABLE TO INFLUENCE THE REGION

Domestic and Foreign ActorsDomestic and Foreign Actors: United States; Western Europe Bloc; Central : United States; Western Europe Bloc; Central Europe Bloc; Baltic; Eastern Europe Bloc; Caucasus Countries; Middle East Europe Bloc; Baltic; Eastern Europe Bloc; Caucasus Countries; Middle East Countries (Israel); North of Africa; Nigeria and Central Africa Oil and Gas Countries (Israel); North of Africa; Nigeria and Central Africa Oil and Gas Producers; Central Asia Countries; India; China.Producers; Central Asia Countries; India; China.

International Organizations: International Organizations: European Union; NATO; GUAM (European Union; NATO; GUAM (Organization for Organization for Democracy and Economic Development)Democracy and Economic Development); GECF (Gas Exporting Countries Forum); ; GECF (Gas Exporting Countries Forum); SCO (SCO (Shanghai Cooperation Organization)Shanghai Cooperation Organization); CSTO (Collective Security Treaty ; CSTO (Collective Security Treaty Organization); Eurasian Economic Community (EurAsEC); ASEAN; ASEAN Organization); Eurasian Economic Community (EurAsEC); ASEAN; ASEAN DIALOGUE PARTNERS; OPECDIALOGUE PARTNERS; OPEC

National Actors National Actors (Crises Russia-Ukraine, Major Political Parties): (Crises Russia-Ukraine, Major Political Parties): United Russia United Russia (Vladimir Putin, Dimitry Medvedev); Communist Party of the Russian Federation (Vladimir Putin, Dimitry Medvedev); Communist Party of the Russian Federation (Gennady Zyuganov); Liberal Democratic Party of Russia (Vladimir Zhirinovsky); (Gennady Zyuganov); Liberal Democratic Party of Russia (Vladimir Zhirinovsky); Fair Russia (Sergey Mironov); The Party of Regions (Viktor Yanukovych); The Yulia Fair Russia (Sergey Mironov); The Party of Regions (Viktor Yanukovych); The Yulia Tymoshenko Bloc (Yulia Tymoshenko); The Our Ukraine–People's Self-Defense Bloc Tymoshenko Bloc (Yulia Tymoshenko); The Our Ukraine–People's Self-Defense Bloc (Viktor Yushchenko)(Viktor Yushchenko)

Gas Economic Actors: Gas Economic Actors: Gazprom (Russia); Rosneft (Russia); Gazprom (Russia); Rosneft (Russia); Naftohaz Ukrainy; Naftohaz Ukrainy; Beltransgaz (Belarus);Beltransgaz (Belarus); Exxon Mobil (United States); British Petroleum (Great Exxon Mobil (United States); British Petroleum (Great Britain); Total Fina Elf (France); Royal Dutch Petroleum (Nederlands); Britain); Total Fina Elf (France); Royal Dutch Petroleum (Nederlands); ChevronTexaco (United States); Eni (Italy); Shell Transport and Trading (Great ChevronTexaco (United States); Eni (Italy); Shell Transport and Trading (Great Britain); Basf (Germany); Wintershall (Germany); QatarGas (Qatar Petroleum); Britain); Basf (Germany); Wintershall (Germany); QatarGas (Qatar Petroleum); National Iranian Oil Company (NIOC); Gassco (Norway); National Iranian Oil Company (NIOC); Gassco (Norway); StatoilHydro (Norway); StatoilHydro (Norway); DONG Energy (Denmark); China National Petroleum Corporation (CNPC)DONG Energy (Denmark); China National Petroleum Corporation (CNPC)