Title: The Past, Present and Future of Russian Energy Strategy
Headings: The Past, Present and Future of Russian Energy Strategy
ON GEOPOLITICS
The Past, Present and Future of Russian Energy Strategy
Russia's Imperatives and the Energy Factor
Evolution of Russian Energy Strategies
Challenges to Maintaining Russian Energy
Russia's Next Move
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Content: For instance, Russia is one of Europe's two main energy suppliers and is the only European supplier with large reserves of oil and natural gas and historically cheap prices. Russia's physical connectivity with Europe and ability to undercut any competitor have served as the basis of many of Moscow's relationships in Europe. Evolution of Russian Energy Strategies
Energy's usefulness as a means of achieving Russia's three main imperatives has altered over time because Russia has had to change its strategies depending on shifts in domestic or international circumstances. Moscow's strength lies in its flexibility in managing its energy sector. The importance of Russian energy was established in the late 1800s, when the monarchy saw great potential for the Russian Empire if it could develop this sector on a large scale. However, the empire had neither the technology nor the capital to start up an indigenous energy industry. As a solution, the monarchy eased its foreign investment restrictions, inviting European and U.S. firms to develop the Baku and Volga oil fields. This brought about a brief period of warmer relations between the Russian Empire and many Western partners, particularly the United Kingdom, France and the United States. All parties soon realized that the only way to make the Russian oil business profitable despite the high costs associated with the country's harsh and vast geography was to transform Russia into a massive producer. By the turn of the century, the Russian Empire was producing 31 percent of global oil exports.