“The Past, Present and Future of Russian Energy Strategy is republished with permission of Stratfor.”

By Lauren Goodrich and Marc Lanthemann

The future of Russia’s ability to remain a global energy supplier and the strength the Russian energy sector gives the Kremlin are increasingly in question. After a decade of robust energy exports and revenues, Russia is cutting natural gas prices to Europe while revenue projections for its energy behemoth, Gazprom, are declining starting this year.

Russia holds the world’s largest proven reserves of natural gas and continually alternates with Saudi Arabia as the top oil producer. The country supplies a third of Europe’s oil and natural gas and is starting to export more to the energy-hungry East Asian markets. The energy sector is far more than a commercial asset for Moscow; it has been one of the pillars of Russia’s stabilization and increasing strength for more than a century. The Kremlin has designated energy security as the primary issue for Russia’s national security, especially since recent changes in global and domestic trends have cast doubts on the energy sector’s continuing strength.

Throughout Russian history, the country’s energy sector periodically has strengthened and weakened. Managing this cycle has been a centerpiece of Russia’s domestic and foreign policy since czarist times. This historical burden now rests on Vladimir Putin’s regime. Read the rest of this entry »