By Jack Sharples, PhD, Research Fellow of the Oxford Institute of Energy Studies and EGF Associate Researcher on the External Dimensions of Russian Gas

Gazprom Export launched its Electronic Sales Platform (ESP) in the context of an increasingly competitive European market. Sales volumes have grown, and have averaged 2 bcm per month since April 2019. As a result of this growth, the ESP is now a key part of Gazprom’s European sales strategy: It generates additional sales revenues, optimises Gazprom’s use of is physical export infrastructure, and provides a constant flow of valuable market data that informs Gazprom’s wider sales strategy. Sales are largely concentrated in four countries, while deliveries are split between Ukrainian and non-Ukrainian routes. ESP sales prices closely track European hub prices for comparable products, and the sales volumes show that Gazprom’s counterparties consider the ESP an attractive offering. The operation of the ESP highlights the crucial element of Gazprom’s European sales strategy: The importance of nuanced optimisation, as Gazprom seeks to maximise its sales volumes without placing excessive downward pressure on European hub prices that would impact revenues from its hub-indexed LTC portfolio. Overall, the ESP demonstrates how far Gazprom has evolved in the past decade, as it seeks to retain market share on an increasingly competitive European market. READ MORE

By Benyamin Poghosyan, PhD, Chairman, Center for Political and Economic Strategic Studies

Armenia-Russia relations have been the cornerstone of Armenian foreign policy since Armenia’s independence in September 1991. Immediately after the collapse of the Soviet Union Armenia found itself in a multi-dimensional crisis – the war in Karabakh, a blockade imposed by Azerbaijan and Turkey, and steep economic decline. In those circumstances, Armenia had no alternative but to forge a strategic alliance with Russia. Thus, Yerevan signed the Collective Security Treaty in May 1992, Russian border troops were deployed along the Armenia–Turkey and Armenia–Iran borders, and in 1995 Russia took over the former Soviet military base in Gyumri. READ MORE

By Anna Ohanyan, PhD, non-resident senior scholar in the Russia and Eurasia Program of Carnegie

Reeling from a military defeat in a war with Turkey-backed Azerbaijan, can Armenia’s hard-won democracy withstand domestic political turmoil?
The recent agreement to cease hostilities in Nagorno-Karabakh has created a new status quo in the South Caucasus. Azerbaijan has recovered territories it lost in the 1990s when the conflict over the enclave first erupted, in the shadow of the Soviet collapse. A new modus vivendi between Russia and Turkey is shaping regional geopolitics. Once shaky authoritarian rule in Azerbaijan is now more deeply entrenched. It can also count on the support of Turkey, another increasingly authoritarian player in the neighbourhood. This stronger and deeper authoritarian presence in the region will place significant stress on nascent democracies in Georgia and Armenia for years to come. READ MORE

By Nika Chitadze, PhD, Professor at the International University of the Black Sea, Tbilisi

As it is well known from recent media reports, a new political crisis has emerged in Georgia after the October 31, 2020 parliamentary elections. The main reason for this crisis is the fact that the opposition parties have claimed that the Central Election Commission and the ruling party “Georgian Dream” have falsified the election results and have usurped the power. The National Democratic Institute and the American Republican Institute have expressed their critical views in this regard. A relatively soft position was stated by the OSCE Office for Democracy and Human Rights and the Council of Europe. READ MORE

By Eugene Kogan, Tbilisi-based defence and security expert

Established in 2009, the United States-Georgia Charter on Strategic Partnership is based on four core pillars: Defense and Security Cooperation; Economic, Trade and Energy Cooperation; Strengthening Democracy; and Increasing People-to-People and Cultural Exchanges. As part of these two countries’ defence and security cooperation, the US provides financial support to the Georgian military, support for Georgia’s territorial defence and sovereignty, and, ultimately, for Georgia’s procurement of US defensive weapons. READ MORE

By Eugene Kogan, Tbilisi-based defence and security expert

Undoubtedly, the Russian annexation of Crimea in March 2014 caused serious damage to the Ukrainian Naval Forces. About 70 per cent of the fleet has been lost and what remained is in poor shape and in need of repairs.
The resulting conflict in the Eastern part of Ukraine drew attention, energy and resources away from the difficult state of the Ukrainian Navy towards the urgent needs of the army and air force. The perilous state of the economy has further decreased financial support for the Navy’s needs. In addition, a debate on the conceptual vision of the Navy divided the expert community and top naval personnel for about 15 months. READ MORE

By Sergey Markedonov, Leading Researcher, MGIMO Institute

Future historians will definitely christen the year 2020 as the worldwide onset of coronavirus. It seems like tons of research articles and expert reports on the impact of the pandemic on the global economy and international political processes have been published. However, it is quite obvious that with the focus having been shifted towards the global perspective, the processes taking place in individual countries and regions appear to be falling out of sight. In the meantime, all of the conclusions drawn about the comprehensive implications of COVID-19 will remain somewhat schematic and generic without due consideration of their nuances and peculiarities. READ MORE

By Jack Sharples, Research Fellow of the Oxford Institute of Energy Studies and EGF Associate Researcher on the External Dimensions of Russian Gas

With European gas import demand having risen substantially since 2014, Gazprom has dramatically increased its sales on the European market. In Q1 2018, Gazprom reported record daily gas exports to Europe in late February and early March. This Comment addresses the question of how those volumes were delivered to the market, and the extent to which the infrastructure for delivery of those volumes was used, highlighting that, in times of peak European gas import demand, full utilisation of the Nord Stream and Yamal-Europe pipelines left Ukraine as the only transit route with spare capacity. READ MORE