Russia in international natural gas markets: possible prospects

Abstract

Shale gas revolution and growing production of LNG changed materially the structure of the global gas market. A strive of EU, which is the main consumer of Russian gas, to reduce its dependence on the gas and to obtain its energy self-sufficiency considerably altered the terms and conditions for Russia’s gas exports. The situation in Ukraine became a new challenge for Russia and regional gas markets. Problems with the transit of Russian gas through Ukraine are the main reasons for the construction of gas pipelines bypassing this country: the North stream and South stream. Under the challenging situation on the European gas market the most promising new markets for Russian natural gas are China, Japan and Korea. The Eastern vector of the gas strategy of Russia will allow to strengthen its competitive position in the gas sector of the world economy.