Russian gas export towards Bulgaria: inconsistent political response due to energy security challenge

Abstract

This paper examines the relation of state ownership in Russian oil and gas companies, why they are interested in export through Bulgaria as a transit country towards Europe, and why they face an inconsistent political response by Bulgaria since its EU membership. The theoretical body is split in three parts, applying deductive approach. First, the role of state ownership is compared in motivation factors for multinational enterprises of Russia, China, India, and Turkey. Second, the importance of oil and gas companies for Russia is outlined, and the aim for monopoly of Gazprom on European markets. Third, a gap is found in the necessity to examine geopolitical factors shaping the individual interests of different EU Member States concerning energy import from Russia. The empirical part addresses the effects of the energy security strategies of Russia and the EU to the inconsistent political responses of Bulgaria. Among the main findings, three factors are identified to influence Bulgaria’s political decisions regarding its energy security. First, it is the geopolitical location as a transit route for Russia and Turkey towards the EU. Second, it is the high dependence on Russian import, and third, the obligation to follow EU rules for diversification of supply. In this context, it is concluded that Bulgaria could undertake stable political decisions regarding its energy market only if agreed with both Russia and the EU. The opportunities for EU-Russia compromise agreement on the energy security contradiction are examined on the example of Turkish Stream gas pipeline project. Recommendations for further analysis on Russian energy projects towards Bulgaria suggest research on the stability of political affiliation of its governments.