April 18, 2008 By Robert Amsterdam

Chasing Down Reciprocity in EU-Russia Energy Relations

Reciprocity is quite a loaded word in the energy debate, but essentially the concept calls for equitable, comparable, and fair terms of access into the energy markets of two partners – namely, if Gazprom can purchase distribution and sales assets in the European Union, than European companies should be allowed major stakes at oil and gas production sites in Russia. However it becomes much more complex than that, as Katinka Barysch of the Centre for European Reform has indicated in many of her analysis papers. She writes, “The trouble is that Europeans and Russians mean completely different things when they talk about reciprocity. The EU wants a mutually agreed legal framework to facilitate two-way investment. The Kremlin wants assets swaps. Europe wants openness, Russia wants control. For now, reciprocity is working in Russia’s favour.