Studies Eastern European Markets
oalvelut ja yritykset
Eastern European Markets
business news
Trade StationFinland
Business Finland
Trade Service Companies


Peeter Vahtra & Stefan Ehrstedt
Russian energy supplies and the Baltic Sea region
Electronic Publications of Pan-European Institute 11/2008

Download the publication in PDF format.

Executive summary

The development of Russian energy investments is of vital importance for the future of the Baltic Sea Region energy infrastructure. Russia has already significant investments in the oil and gas sectors of the region, mostly through the state owned Gazprom and the privately held oil company Lukoil. Russia has an important role as an energy supplier as well. Finland and the Baltic countries are in practice totally dependent in Russian gas deliveries and even the biggest gas consumer of the Baltic Sea Region, Germany, imports over 40% of its gas from Russia. In addition, over half of Russian crude oil is exported either through the Baltic Sea Region or to the countries of the region. Key regional infrastructure in Russian oil exports are the Northern Druzhba oil pipeline in Poland and Germany and the Primorsk oil harbor in Russian Gulf of Finland.

The Baltic Sea Region countries can be categorized into three groups in regard to dependence on Russian energy supplies and according to the national energy market size. The Eastern countries of the region, Finland and the Baltic countries are very dependent of Russian energy but from the Russian point of view, they represent a small market for energy exports. The Southern countries of the region, Poland and particularly Germany are less dependent of Russian energy but from the Russian point of view, they represent a large and lucrative market for energy exports. However, the Western countries of the region, Denmark, Norway and Sweden represent a small market which is not dependent on Russian energy.

The Southern, Eastern and Western parts of the Baltic Sea Region thus have different roles in their energy relationship toward Russia. The Southern part, Germany in particular, has a major influence over the energy infrastructure of the whole region. As long as Germany alone consumes over twice as much of Russian gas as the other Baltic Sea Region countries put together, it is obvious that the Russian energy strategy in the region is focused on Germany which leaves the Russian energy decisions for the rest of the Baltic Sea Region subordinate to this. The planned Nord Stream project is a case in point. Here the converging Russo-German energy interests have left especially the small Baltic countries in the shadow when new key regional energy infrastructure is being planned.

Download the publication in PDF format.

More information:
Pan-Eurooppa Instituutti
Rehtorinpellonkatu 3, 20500 TURKU
(02) 4814 560

Compiler Trade Web Site: Tutkimuksia
Studies on emerging markets /Index
Tutkimukjsia / Hakemisto

 TERMS & CONDITIONS / KÄYTTÖOIKEUDET. © Oy Compiler Ab. All rights reserved.