Tatiana Mitrova, Head of the Oil & Gas Department at the Energy Research Institute in Moscow, joins Hughes Belin on viEUws.eu to analyse the consequences of the troubled EU-Russia relations for energy trade. According to Mitrova, the current situation is a “perfect storm” which she warns “could mark the beginning of the end of the European gas industry.”
Mitrova believes the “unification of the European position on gas”, as advocated in the EU’s plans for an Energy Union, “will lead to further unification of the Russian position. All the talk about the potential liberalisation of gas exports [in Russia] will be forgotten. I see no positive outcome from this Gosplan type of business, neither for Russia nor Europe.”
Mitrova notes that “year after year European gas demand is going down, and we see no signs of recovery, even now when gas prices are low. If you add the overall political situation”, it is clear, she says, that energy trade will suffer. “It’s a perfect storm. All negative factors coincide. If there are no active actions taken, it could mark the beginning of the end of the European gas industry.”
According to Mitrova, we are moving towards a “Soviet style situation when all gas was sold on the Soviet border, without any downstream activity. Russia is just trying to preserve its market position, Europe is just trying to secure security of supply. Nobody is talking about growing the gas trade.”
This video appeared first on viEUws entitled Despite rising tensions, Europe to remain Russia’s main gas customer.