By CER - Centre for European Reform Published: 15/10/2008

Download Report - Pipelines, politics and power

Russia is the world's largest gas producer. The EU is the world's biggest gas market. The two are neighbours. Logically, the EU and Russia should have a well-developed energy relationship. The EU gets over 40 per cent of its gas imports from Russia, and two-thirds of Russia's gas exports go to EU countries. Russia is also the source of almost a third of the EU's oil and a quarter of its coal imports.
European companies are among the biggest investors in the Russian oil, gas and electricity sectors. At the same time, Russia's energy giants want more access to the EU market, to raise capital and buy power stations and pipelines.