Rethinking EU-Russia energy relations [elektroninis išteklius] : what do the Baltic States want?

Abstract

Dependency and the absence of a well functioning energy market are the most challenging relics of the Soviet legacy in the Baltic States. In the electricity sector, Lithuania’s, Latvia’s and Estonia’s grids are all linked to the post-Soviet, Eastern system. In the gas sector, all three countries have no option other than to import gas exclusively from Gazprom. Major vulnerability is caused by a specific circumstance in this regard: the single supplier, or regulator in the case of electricity, tends to follow a strategy of ‘energy diplomacy’, rather than the principles of a market economy. The obligation to pay a considerably higher price for natural gas than many other member states of the European Union (EU), the avoidance of the Baltic States as transit countries, and blackmail regarding possible supply disruptions are clear consequences of this situation. [...]