Creative Commons

This dissertation was written as a part of the “MSc in Energy Law, Business, Regulation and Policy” at the International Hellenic University. Energy security is currently one of the most disputed issues between the European Union (EU) and Russia n Federation (Russia) . Their energy trading relationship can be characterized as a “necessary evil” for both. Neither, EU feels comfortable, being highly dependent on energy imports from third countries, let alone when it is Vladimir Putin's Russia, nor Russia feels comfortable, being highly dependent on the energy exports -revenues to the Pro- American EU . From EU’s perspective, having experienced the consequences of 2006 and 2009 gas crises, Russia’s position as a reliable partner -supplier is considered as questionable, leading the EU to accelerate its energy diversification and liberalization efforts to decrease its dependency on Russian hydrocarbons . On the other hand, from Russia’s perspective, the above EU attempts, along with the growing Liquefied Natural Gas (LNG) market are considered as a threat for Russia’s domination over European energy market . This thesis aims apart from analysing the phenomenon of the interdependence between EU -Russia and its impact on the EU energy security, to propose a long -term EU energy strategy based on : (i) the diversification of the energy supply by exploiting “taboo” energy sources, such as shale fossil fuels and nuclear energy and (ii) the development of new interconnections linked with new LNG regasification facilities , especially in the littoral EU Member States located in the Baltic , Adriatic and Black Sea , in order to provide flexibility and liquidity regarding the energy supply of both littoral and landlocked Central, Eastern and Baltic Member States, decreasing their dependence on Russian hydrocarbons . The thesis concludes that there is a crucial need for a common EU energy policy, according to which, the EU would negotiate with one voice vis-à-vis third countries such as Russia. EU must undertake such a strategy not only because over -reliance on any one supplier - source represents unsound policy, but more importantly because Europe’s dependency on Russian energy already profoundly threatens the sovereignty of certain Member states . On the other hand, Russia should carry out needed reforms internally and stop aggression outside its borders because its current energy foreign policy threatens its economy’s viability .