Geopolitical Rivalry Between Russia and the United States for the European Gas Market

Abstract

Over the past decades, the European gas market has attracted the attention of many extra-regional actors. The geopolitical rivalry for the European gas market intensified after an increase in shale gas production in the United States, which was interested in expanding its supply to Europe. The development of liquefied natural gas (LNG) sector intensified the struggle for the European gas market. The U.S., Qatar and Algeria, began to take steps to squeeze Russian gas out of Europe. This exacerbated the competition for the gas market in Europe, where LNG has already occupied a certain part. Moreover, in recent years, the U.S. and Qatar have developed ambitious plans aimed at increasing LNG production, expecting in the future to radically change the balance of power on the European market. To this end, the U.S. has launched a campaign against the Russian supplies. In addition, sanctions were imposed on the Nord Stream–2 gas pipeline, which prevented the project from starting operations. Being involved in the geopolitical rivalry between Russia and the United States, the EU countries supported the U.S. course, and proclaimed the policy of reducing dependence on Russian gas. In the long term, they want to give it up completely. This goal was prioritised in the EU gas policy. However, in 2021–2022 this strategy rapidly increased prices on the gas market in Europe, which negatively impacted European economies. Despite the economic losses, the EU did not abandon its course of refusing supplies of hydrocarbon resources from Russia.

Keywords

• eu
• russia
• us
• gas market
• liquefied natural gas