DOI: 10.46340/eujem.2024.10.2.1
Lili Kharchilava, Doctor of International relations
Georgian Technical University: Tbilisi, Georgia
Kakha Petriashvili
Georgian Technical University: Tbilisi, Georgia
How to cite: Kharchilava, L. & Petriashvili, K. (2024). Energy Strategy of Russia and the Persian Gulf States. European Journal of Economics and Management, 10, 1, 5-8. https://doi.org/10.46340/eujem.2024.10.2.1
Abstract
The ongoing events unfolding in the world today, notably the conflicts in Ukraine and the Middle East, serve as further evidence that a new world order is gradually emerging, wherein major players in international relations strive to secure or uphold the most advantageous positions. Energy resources will undoubtedly hold a prominent position in this evolving landscape.
After Russia’s annexation of Crimea in 2014, followed by the unleash of bloody conflicts in eastern Ukraine and direct military intervention in Ukraine with regular army forces in 2022, the West responded with severe economic sanctions against Russia (totaling 13 packages). Consequently, Russia’s engagement in the Middle East energy market has become increasingly significant. Even during the Soviet Union era, Russia maintained close economic ties with the Middle East. However, following the conclusion of the “Cold War” and the collapse of the Soviet Union, the intensity of these relations waned, only to be revitalized upon Vladimir Putin assuming leadership of the Russian government. As is widely recognized, energy serves as a powerful lever of Russia’s foreign policy. Presently, Russia extensively collaborates with the states of the Persian Gulf in the energy sector, particularly in the domains of nuclear energy, gas, and oil, which remain highly relevant. State-owned Russian companies such as “Gazprom” and “Rosatom” serve as key vehicles for advancing Russia’s energy interests, encompassing consumer markets, gas and oil fields, and critical components of nuclear energy. In recent times, Russia has fostered trade and economic ties with Saudi Arabia and the United Arab Emirates. Emphasis is placed on investment issues and the potential of the North-South transport corridor, with primary attention directed towards energy matters.
Russia’s leading strategy is geared towards demonstrating that it is not isolated but rather engaged in a confrontation solely with the Euro-Atlantic space. The Middle East serves as one of the most prominent examples to showcase this strategy. Another key aspect of the intensified cooperation between Russia and the Persian Gulf countries during this period was aimed at stabilizing the oil market and fostering broader investments geared towards reaching agreements on prices for energy carriers.
Keywords: Persian Gulf, energy, politics, economics, geopolitics, geostrategy, Russia, natural gas, oil, crisis, nuclear energy, sanctions.
JEL: Q48, E69, N75.
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