Energy blackmail

Last updated

Energy blackmail is, as defined by the Danish Institute for International Studies (DIIS), a strategic manipulation of energy resources for political or economic gain. It involves primarily oil and natural gas, but also potentially other fuels such as nuclear fuel. [1] Energy blackmail has been used by countries to leverage their energy resources for decades, but the term was popularised after the Russian invasion of Ukraine in 2022 to refer to Russian statements and actions in respect to its relationship with other states and with the European Union (EU). [2] [3] [4] [5] [6] [7] [8]

Contents

History

In 1960, OPEC was founded in Baghdad by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela, [9] as a cartel to fix the price of oil on the world market. [10] In 1973 OPEC imposed an embargo on the United States and other countries that supported Israel during the Yom Kippur War, including Netherlands, Portugal, and South Africa. [11]

In 2017, the United States pressured China and other members of the United Nations Security Council to end oil shipments to North Korea in an effort to stop them from continuing their ICBM programme. [12] [13] [14] In 2024 the United States and South Korea established a task force to block North Korea from acquiring oil. [15]

In May 2023, the European Commissioner for Energy Kadri Simson said that Russian President Vladimir Putin's energy blackmail of Europe had failed. [16]

In December 2024, Volodymyr Zelenskyy, the president of Ukraine, accused Robert Fico, the prime minister of Slovakia of opening "a second front" against Ukraine on Putin's orders, in response to Robert Fico's threats to cut off electricity from Slovakia to Ukraine. [17] [18] [19] Robert Fico threatened to cut off energy supplies after Ukraine refused to renew the deal with Russia regarding transport of gas to European Union countries through Ukrainian territory. [20]

In January 2025, the Moldovan government accused Russia of blackmail in regards to gas supplies to the unrecognized breakaway state of Transnistria in its territory, arguing that Russia sought to provoke an energy crisis that would undermine Moldova's pro-Western policies at the time of the 2025 Moldovan parliamentary election later that year. Russia denied the allegations. [21] [22]

See also

Related Research Articles

<span class="mw-page-title-main">OPEC</span> Intergovernmental oil organization

The Organization of the Petroleum Exporting Countries is a cartel enabling the co-operation of leading oil-producing and oil-dependent countries in order to collectively influence the global oil market and maximize profit. It was founded on 14 September 1960, in Baghdad by the first five members which are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization, which currently comprises 12 member countries, accounted for 38 percent of global oil production, according to a 2022 report. Additionally, it is estimated that 79.5 percent of the world's proven oil reserves are located within OPEC nations, with the Middle East alone accounting for 67.2 percent of OPEC's total reserves.

<span class="mw-page-title-main">Russia–Ukraine gas disputes</span> Disputes between Naftogaz Ukrayiny and Gazprom

The Russia–Ukraine gas disputes refer to a number of disputes between Ukrainian oil and gas company Naftogaz Ukrayiny and Russian gas supplier Gazprom over natural gas supplies, prices, and debts. These disputes have grown beyond simple business disputes into transnational political issues—involving political leaders from several countries—that threaten natural gas supplies in numerous European countries dependent on natural gas imports from Russian suppliers, which are transported through Ukraine. Russia provides approximately a quarter of the natural gas consumed in the European Union; approximately 80% of those exports travel through pipelines across Ukrainian soil prior to arriving in the EU.

<span class="mw-page-title-main">Gas Exporting Countries Forum</span> Intergovernmental organization

The Gas Exporting Countries Forum (GECF) is an intergovernmental organization currently comprising 19 Member Countries of the world's leading natural gas producers: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, and Venezuela are members and Angola, Azerbaijan, Iraq, Mozambique, Malaysia, Norway, Peru and the United Arab Emirates are observers. GECF members together control over 71% of the world's natural proven gas reserves, 44% of its marketed production, 53% of the pipeline, and 57% of the liquefied natural gas (LNG) exports across the globe. It is headquartered in Doha, Qatar.

<span class="mw-page-title-main">Energy policy of Russia</span>

Russia's energy policy is presented in the government's Energy Strategy document, first approved in 2000, which sets out the government's policy to 2020. The Energy Strategy outlines several key priorities: increased energy efficiency, reducing the impact on the environment, sustainable development, energy development and technological development, as well as improved effectiveness and competitiveness. Russia's greenhouse gas emissions are large because of its energy policy. Russia is rich in natural energy resources and is one of the world's energy superpowers. Russia is the world's leading net energy exporter, and was a major supplier to the European Union until the Russian invasion of Ukraine. Russia has signed and ratified the Kyoto Protocol and Paris Agreement. Numerous scholars posit that Russia uses its energy exports as a foreign policy instrument towards other countries.

<span class="mw-page-title-main">Energy security</span> National security considerations of energy availability

Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.

<span class="mw-page-title-main">Petroleum industry in Russia</span> One of the largest in the world

The petroleum or oil industry in Russia is one of the largest in the world. Russia has the largest reserves and was the largest exporter of natural gas. It has the sixth largest oil reserves, and is one of the largest producers of oil. It is the fourth largest energy user.

<span class="mw-page-title-main">Urengoy–Pomary–Uzhhorod pipeline</span> Russia-Ukraine gas transporter

The Urengoy–Pomary–Uzhhorod pipeline was one of Russia's main natural gas export pipelines, partially owned and operated by Ukraine. It was part of the "gas in exchange for pipes program", and the Soviet-controlled bank "Ost-West Handelsbank" was opened in Frankfurt on 1 March 1973 to support the project. Russia stopped exporting through this pipeline at the end of 2024 as Ukraine did not renew the contract.

<span class="mw-page-title-main">Russia–Saudi Arabia relations</span> Bilateral relations

Russia–Saudi Arabia relations are the bilateral relations between the Russian Federation and the Kingdom of Saudi Arabia. The two countries are referred to as the two petroleum superpowers and account for about a quarter of the world's crude oil production between them.

The foreign policy of Vladimir Putin concerns the policies of the Russian Federation's president Vladimir Putin with respect to other nations. He has held the office of the President previously from 2000 to 2008, and reassumed power again in 2012 and has been President since.

<span class="mw-page-title-main">Russia–Slovakia relations</span> Bilateral relations

Russia–Slovakia relations date back to when diplomatic relations were established upon Slovakia gaining its independence on January 1, 1993. Russia opened its embassy in Bratislava in 1993. Slovakia also has an embassy in Moscow. Unlike Slovakia's neighbour and close ally Czech Republic, which has a negative view of Russia due to past events, Slovakia tends to have better relations with Russia.

<span class="mw-page-title-main">2009 Russia–Ukraine gas dispute</span>

In 2009, Russian natural gas company Gazprom refused to conclude a supply contract unless Ukrainian gas company Naftogaz paid its accumulating debts for previous gas supplies. The dispute began in the closing weeks of 2008 with a series of failed negotiations, and on January 1, 2009 Russia cut off gas supplies to Ukraine. On January 7 the dispute turned to crisis when all Russian gas flows through Ukraine were halted for 13 days, completely cutting off supplies to Southeastern Europe, most of which depends on Russian gas, and partially to other European countries.

<span class="mw-page-title-main">Russia in the European energy sector</span>

Russia supplies a significant volume of fossil fuels to other European countries. In 2021, it was the largest exporter of oil and natural gas to the European Union, (90%) and 40% of gas consumed in the EU came from Russia.

<span class="mw-page-title-main">Energy in Moldova</span>

With few natural energy resources, Moldova imports almost all of its energy supplies. 50% of the country's national energy company, Moldovagaz, is owned by Russian oil and natural gas supplier Gazprom, the remaining 36% split between the Moldovan government (36.6%) and the unrecognised government of Transnistria (13.4%). Moldova's historic dependence on Russian energy is underscored by a debt of more than US$709 million to Gazprom as well as a further US$7 billion by Transnistria. Russia supplies the breakaway pro-Russian region with oil and natural gas without requiring them to pay, with the cost levied as debt against the Moldovan state as a form of economic warfare. The Moldovan government disputes the figures, and has identified more than US$100 million in fraudulent claims by Gazprom.

<span class="mw-page-title-main">China–Russia relations</span> Bilateral relations

China and Russia established diplomatic relations after the dissolution of the Soviet Union in 1991.

International sanctions have been imposed against Russia and Crimea during the Russo-Ukrainian War by a large number of countries, including the United States, Canada, the European Union, and international organisations following the Russian annexation of Crimea, which began in late February 2014. Belarus has also been sanctioned for its cooperation with and assistance to Russian armed forces. The sanctions were imposed against individuals, businesses, and officials from Russia and Ukraine. Russia responded with sanctions against several countries, including a total ban on food imports from Australia, Canada, Norway, Japan, the United States, the EU and the United Kingdom.

Higher energy prices pushed families into poverty, forced some factories to curtail output or even shut down, and slowed economic growth. It was estimated in 2022 that an additional 11 million Europeans could be driven to poverty due to energy inflation. Europe's gas supply is uniquely vulnerable because of its historic reliance on Russia, while many emerging economies have seen higher energy import bills and fuel shortages.

<span class="mw-page-title-main">2022–2023 Russia–European Union gas dispute</span> Fossil fuel financing-related conflicts

The Russia–EU gas dispute flared up in March 2022 following the invasion of Ukraine on 24 February 2022. Russia and the major EU countries clashed over the issue of payment for natural gas pipelined to Europe by Russia's Gazprom, amidst sanctions on Russia that were expanded in response to Russia's 2022 invasion of Ukraine. In June, Gazprom claimed it was obliged to cut the flow of gas to Germany by more than half, as a result of such sanctions that prevented the Russian company from receiving its turbine component from Canada. On 26 September 2022, three of the four pipes of the Nord Stream 1 and 2 gas pipelines were sabotaged. This resulted in a record release of 115,000 tonnes of methane (CH4) – an equivalent of 15 million tonnes of carbon dioxide (CO2) – and is believed to have made a contribution to global warming.

The 2021–2022 global energy crisis has caused varying effects in different parts of the world.

Starting in late 2022, Moldova suffered an energy crisis, the worst since its independence. Hugely influenced by the Russian invasion of Ukraine, caused when Russia's Gazprom reduced supplies.

<span class="mw-page-title-main">Lukoil oil transit dispute</span> Slovak-Hungarian diplomatic dispute against Ukraine oil sanctions

The Lukoil oil transit dispute is an ongoing international relations dispute between Ukraine and the European Union at odds with Hungary and Slovakia regarding the allowance of the pipeline transfer of Russian oil through Ukrainian territory. The diplomatic standoff arose when on 24 July 2024, Ukraine imposed sanctions on Lukoil — Russia's largest private oil firm — effectively halting oil supplies to Hungary and Slovakia via the Druzhba pipeline, which the latter two nations stated would lead to an energy crisis and economic collapse. In response, Hungary and Slovakia complained to the European Commission while threatening to halt military aid shipments, energy, and diesel supplies to Ukraine.

References

  1. Slakaityte, Veronika; Surwillo, Izabela (9 January 2024). "Energy as a weapon - decoding blackmail tactics in Europe". Danish Institute for International Studies.
  2. Ganapathy, Cauvery (2024). "Leverage in Energy Security: Weaponising For Good and Bad". In Mishra, Omprakash; Sen, Souradeep (eds.). Global Political Economy, Geopolitics and International Security: The World in Permacrisis. Palgrave Macmillan. p. 176. doi:10.1007/978-981-97-2231-0. ISBN   978-981-97-2230-3. Given that there is evidence now to suggest that by March 2021 (Kramer 2021), President Putin had made up his mind regarding the invasion of Ukraine in the coming spring, the decision by the Russians to reduce the supply of gas to Europe, could well account for a case of energy blackmail.
  3. Bryjka, Filip (12 May 2023). "How the War in Ukraine Impacts NATO Policy in the Black Sea Region". PISM Bulletin. 57 (2176). Polish Institute of International Affairs: 1. Through hybrid methods, Russia is destabilising the internal situation in Moldova where it uses energy blackmail, disinformation, and financing of protests to undermine the pro-European Action and Solidarity Party (PAS) government and replace it with the pro-Russian Şor Party.
  4. Kirkegaard, Jacob Funk (30 September 2023). "Russia's invasion of Ukraine has cemented the European Union's commitment to carbon pricing". Policy Brief 23-13. Peterson Institute for International Economics. p. 1. Despite the energy shock of 2022, the price of EU carbon emissions permits was maintained in the €85 per ton range once Russia's energy blackmail became apparent in late 2021.
  5. Shelest, Hanna (13 December 2015). "Hybrid War & the Eastern Partnership: Waiting for a Correlation" (PDF). Turkish Policy Quarterly . Vol. 14, no. 3. p. 46. This pressure in the form of trade wars, energy blackmail, discreditable propaganda, diplomatic deceit, and coercion to join alternative regional integration projects has been felt by almost all Eastern Partnership states (Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine).
  6. Ekmanis, Indra (28 October 2024). "Contesting Russia: The Baltic Perspective". Baltic Bulletin. Eurasia Program. Foreign Policy Research Institute. The Baltic states, in turn, have responded by turning areas of risk into areas of expertise: for example, [...] on Energy Security in Lithuania (2012), where previous dependency on Russia left the country vulnerable to energy blackmail;
  7. Korybko, Andrew (6 June 2014). "The Prospects for the South Stream Pipeline after the Ukrainian Crisis" (PDF). Foreign Policy Journal.
  8. Blank, Stephen (27 August 2013). "Russia Pressures Armenia to Join Customs Union". The Central Asia-Caucasus Analyst. Central Asia-Caucasus Institute. Moscow's two abiding goals are to integrate the entire post-Soviet space under its domination and as part of that larger multi-dimensional process, ensure that it is the only security manager in the Caucasus. Not only is it now using energy blackmail against Armenia; [...]
  9. "What is OPEC+ and how does it affect oil prices?". Reuters . 24 May 2024. Retrieved 16 January 2025.{{cite news}}: CS1 maint: url-status (link)
  10. "Opec: What is it and what is happening to oil prices?". 2022-05-03. Retrieved 2025-01-16.
  11. "OPEC Oil Embargo 1973–1974". U.S. Department of State, Office of the Historian. Archived from the original on March 6, 2014. Retrieved January 16, 2025.
  12. Sanger, David E.; Sang-Hun, Choe (2017-09-04). "U.S. Urges Fuel Cutoff for North Korea, Saying It's 'Begging for War'". The New York Times. ISSN   0362-4331 . Retrieved 2025-01-16.
  13. Zhao, Tong (2017-12-01). "Why an oil embargo won't stop North Korea". CNN. Retrieved 2025-01-16.
  14. "Sorry, an Oil Embargo Won't Lead to North Korea's Capitulation". thediplomat.com. Retrieved 2025-01-16.
  15. Smith, Josh (27 March 2024). "US, South Korea set up task force to block North Korea oil shipments". Reuters . Retrieved 16 January 2025.{{cite news}}: CS1 maint: url-status (link)
  16. "Putin's energy blackmail of Europe has failed, commissioner says". Reuters. Archived from the original on 2023-07-25. Retrieved 2025-01-16.
  17. "Zelenskyy on Slovak PM's blackmail: 'It appears that Putin gave Fico the order'". RBC-Ukraine. Retrieved 2025-01-16.
  18. Hunder, Max (28 December 2024). "Ukraine's Zelenskiy hits back at Slovak PM Fico as gas transit dispute deepens". Reuters . Retrieved 16 January 2025.{{cite news}}: CS1 maint: url-status (link)
  19. "Putin 'appears to have ordered Slovakia's Fico to open second energy front against Ukraine,' Zelensky says". Yahoo News. 2024-12-28. Retrieved 2025-01-16.
  20. "Slovakia to consider reciprocal measures if Ukraine stops Russian gas transit, Fico says". Reuters . 27 December 2024. Retrieved 16 January 2025.{{cite news}}: CS1 maint: url-status (link)
  21. Maynes, Charles (9 January 2025). "Here's what's behind Russia cutting off its last gas line to Europe". NPR . Retrieved 16 January 2025.{{cite news}}: CS1 maint: url-status (link)
  22. Güngör, Yasin (16 November 2024). "EU Commission chief accuses Russia of energy 'blackmail'". Anadolu Agency .