The paper "Alternative Sources of Energy for the European Union" is a great example of a macro and microeconomics case study. In the 21st century, energy has become an important factor in improving the economy (Spencer, Sartor & Matthieu 2014). Today, many countries need the energy to operate their companies and light their home. However, with the population increasing, many countries are facing a shortage of this precious product, and are now depending on other countries to meet their needs. One such situation is being faced by the European Union countries.
According to Tindale (2014), Russian has been supplying one-third of the EU’ s gas for quite sometimes. However, this situation is being threatened by foreign relations breakdown between Russian and several EU countries. Today, Europe has stepped up its endeavors to cut its exposure to prospective blackmail by Russia over the energy supplies, introducing a determined strategy intended to weaken Russian domination of EU’ s gas imports (Singh 2014). The move is also aimed at venturing into renewable sources of energy. The benefits of a renewable source of energy are massive since they can fulfill the global energy demand several times.
Based on the analysis, this report discusses Russian foreign relations with the EU, the importance of alternative sources of energy to the EU member countries and how the EU new policies and technologies will impact the Oil and Gas Industry. 2.0 Russian foreign relations with the EU In recent years, foreign relations between EU member countries and Russian has been weakening (Euractiv 2014a). Russia-European foreign relations are the global relations between the European Union and its major bordering nation, and Russia in the East.
The relationship of EU individual and Russia differ, although in the 90s a common foreign policy outlining a common agenda with European Union foreign policy was agreed. EU President Van Rompuy alluded that Russia is pursuing ‘ divide-and-rule’ vis-à -vis policy on EU countries (Euractiv 2014a). From the time when the Soviet Union disintegrated and nationalism has resurfaced as a divisive in addition to the cohesive aspect in Eastern part of Europe, people have doubted whether the nationalist political elite of Russia would accept the Ukraine independence, and to some extent of other previous Soviet Republics. The expert analysis believed that the issue of independence of former republics was not the main concern during the Yeltsin tenure (Euractiv 2014b).
This was also not a key concern of Kremlin until Putin 2012 when came back to the presidency. Cunningham (2014) claims that after the Ukraine-Russia gas dispute in 2009, the repute of Russia on supplying gas had been dented. Following striking of a deal between the EU and Ukraine in 2009 to improve the gas pipelines of Ukraine, Vladimir Putin threatened to assess relations between EU and Russia (Singh 2014).
Putting even stated that if the interests of Russia are overlooked, they will also begin reviewing their relations with the EU. According to Singh (2014), Russian minister for Sergei Shmatko stated that the strategy looked to attract Ukraine lawfully closer to the EU and could harm the interests of Moscow. The relations were further worsened by the Ukrainian revolution. After the disintegration of pro-Russian administration in Ukraine, Russia started an intervention of Ukraine by setting up a military base in Crimea Peninsula including Ukrainian borders (Johnson 2014).
European Union energy markets have been worried concerning the effects of the invasion of Crimean peninsula by Russia and the risk it sends to Ukraine, could bear on natural gas supply in the continent. Johnson (2014) argues that many leaders are thinking that Russia is using gas to hold Europe. The prices of natural gas in Europe went up from March 2014 because of the diplomatic and military standoff between Ukraine and Russia. The situation has extended to the rest of the EU member countries.
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