Daily Times

The disintegration of USSR and the emergence of Russian federation, gave America the recognition to have the top most chair in the global affairs. The decade that followed the disintegration of the USSR, was full of uncertainty for the Russian people and the identity of their fatherland, as to how to adjust in the world governed by a modern superpower with Europe as an ally and NATO as their tool to challenge new Russia and its interests.

Nearly everything changed after its disintegration, the Russia space prowess, its top achievements in the field of science and technology, its influence on the global scale due to vital changes in its geography. One thing remained the same and that was its energy infrastructure and reserves, and the effect it would create in the coming decades.

Russia was about to face the 21st Century with a heavy heart and challenges that seemed unsurmountable; the war in Chechnya, and other separatist movements like Dagestan, further tarnished its image on the global scale. The new kind of war insurgency was a challenge in itself for the former superpower. Russia began the 21st century as a reliable partner of the west, by signing up to the Global war on terror, and thus was successful in getting western backing in the second crucial decade after its disintegration.

This week Russia is hosting a ‘Russian Energy Week‘ from October 3 to October 6. The forum was established by the Russian Government in 2016, and the first Russian energy Week was held in 2017, becoming a vital hub for the energy sector, citing Russia’s robust presence at the Global energy map, being the efficient member of OPEC, the world’s largest gas producer and exporter, occupying a major share in the lucrative Liquefied natural Gas Market. Its expertise and technical knowhow in various fields of energy and its re-emergence as a Global energy player, by stamping the record export of natural gas to Europe, by completing the vital pipeline, the power of Siberia, to meet Chinese energy demand, and the proposed two new pipelines like Nord Stream II via Germany and Turkish Stream via Turkey to modernize its energy supplies to the EU.

Putin highlighted the importance of OPEC in hisopening remarks, saying “constructive and useful dialogue between all the members of the market is important for the global energy market”, adding that “reliable energy security for the planet is only possible through global partnership and Russia not just own the largest reserves of such sources but have developed a robust infrastructure for its delivery.”

This year’s Energy Week Forum was inauguratedby the President of Russia, with a hope to have a joint energy future and keep politics away from the energy market, and ensure a fair share for all. Putin highlighted the importance of OPEC in his opening remarks, saying “constructive and useful dialogue between all the members of the market is important for the global energy market”, adding that “reliable energy security for the planet is only possible through global partnership and Russia not just own the largest reserves of such sources but have developed a robust infrastructure for its delivery.” He highlighted the Russian willingness to promote and expand the existing pipeline network, and with the coming nuclear icebreakers a new passage through arctic to carry LNG shipments via Russia arctic will further diversify the delivery system. He further showed willingness to tap the potential of the coal market, but with environment friendly application especially for electricity generation.

Germany faces pressure from few of its allies especially the US to shun the idea of Nord Stream II. Keeping in view the prospects of these new pipelines, the US feels that Russia will erode its chances of becoming the leading player in European Energy Equation which can jeopardize its hard won success in developing all the LNG producing facilities in the US, which are ready to be delivered to a market like Europe. But as Bloomberg quoted “Global LNG market doesn’t exist, there are three regional markets: America, Europe and Asia, with big price differences”.

The global energy and other such forums offer an opportunity for the policymakers, experts and CEOs to find solutions for the coming frictions between the major energy producing countries. Putin’s emphasis on the apolitical stance on energy issues, fair share formula, and dialogue between energy rich countries is the only way forward. The world energy needs will double in the next 20 years, but the good news is that technologically advanced countries are also diversifying the fuels to meet these gigantic demands. The only threat is the friction and desire to have a bigger share of the market.

The writer has a MSc Strategic Studies from the National Defence University Islamabad. He can be contacted on his Email: asfpak15@yahoo.com

Published in Daily Times, October 13^th 2018.