Andreas Heinrich

Under the Kremlin's Thumb: Does Increased State Control in the Russian Gas Sector Endanger European Energy Security?

Abstract This article examines the effect of increased state control over the Russian gas sector and its ultimate impact on energy security in Europe. The various mechanisms by which the state has acquired ownership (or quasi-ownership) over several independent gas producers as well as the potential dangers this poses for European energy supplies are scrutinised. Due to the demonstrated inefficiency of Russian state-controlled companies, negative consequences, such as slowed production growth, are likely to result. The few remaining independent gas producers are still hampered in their development due to the governments reluctance to implement structural reforms in the Russian gas sector.

Russian Companies in Old EU Member States

SUMMARY In Germany small businesses seem to dominate Russian investment activities in number. Larger, export-oriented Russian companies, mostly from the raw materials sector, use Germany as an entry to Europe-primarily to the old EU member statesutilizing its technological and intellectual infrastructure. However, the majority of investment activities are unspecific and insignificant. Driven by market seeking motives, the Russian companies have established primarily representative offices and marketing subsidiaries. The only remarkable exception is Gazprom, which is involved in more specific and significant investments in Germany.

Foreign Investment and National Interests in the Russian Oil and Gas Industry

This article examines the political economy of foreign direct investment in the Russian oil and gas industry in order to explain the limited role of foreign capital in this sector. There are three forms of foreign direct investment in the Russian oil and gas industry: (1) joint ventures, (2) investment within the framework of a production sharing agreement (PSA) and (3) foreign equity investment. The development of these three forms of foreign direct investment is analysed with special reference to the interests of the parties involved, before a conclusion on the political factors determining the conditions for foreign investment is made.

Why corporate governance in the Russian oil and gas industry is improving

Purpose – This research paper aims to examine global factors influencing business behaviour in the Russian oil and natural gas sector. The aspect of corporate governance will serve as an indicator for the business behaviour processes under review. It will be investigated whether global factors in the form of internationalization result in the adoption of international norms, standards and business practices, thereby bringing about a change in a companys corporate governance.Design/methodology/approach – Two indices were developed to measure the degree of internationalization and the quality of corporate governance in the individual companies. The correlation between these two factors was tested statistically.Findings – The study indicates that in 1997 there was no statistical correlation between the degree of internationalization and the quality of corporate governance. In 1999 and 2001, however, there was a statistical correlation of 0.75 and 0.90 respectively between both variables, corroborating the h...

The Formal Political System in Azerbaijan and Kazakhstan: A Background Study

The paper presented here is the background study on the political system in Azerbaijan and Kazakhstan. It deals with the development of the formal political system as well as its practical application. For each country under review, the paper analyses the constitutional development followed by a detailed examination of the main formal political institutions, such as the presidency, the executive branch (consisting of government and administration), the parliament, the political party system, the electoral system, civil society, mass media, political culture and political participation, the juridical system and constitutional court, as well as regional and local policy. Statistical data on office holders, as well as presidential and parliamentary election results, will also be provided for each country. The study concludes with an appendix with the country rankings related to the political system.

Factors Influencing Corporate Governance in post-Socialist Companies: an Analytical Framework

In explaining the corporate governance performance of post-socialist companies, this article identifies four factors of influence: (1) pressure from majority shareholders, (2) pressure from outside minority shareholders, (3) pressure resulting from internationalization/ globalization and (4) pressure exerted by the state in the form of legal regulation. If all four factors have an impact on corporate governance performance, their interaction has to be explained. On the basis of research conducted thus far, this article suggests an analytical framework for the examination of corporate governance performance of postsocialist companies. Case studies of oil and gas firms from Central and Eastern Europe illustrate how the above factors influence a company???s corporate governance performance.

Securitisation in the Gas Sector: Energy Security Debates Concerning the Example of the Nord Stream Pipeline

The chapter compares the securitisation of transnational energy infrastructures in Germany and Poland through the example of the Nord Stream gas pipeline. The pipeline allows for direct natural gas deliveries from Russia to Germany through the Baltic Sea—bypassing the traditional transit countries in Central and Eastern Europe, Poland among them. Thus, its construction is one of the most controversial energy issues in German-Polish relations. Scrutinising the national debates about the Nord Stream pipeline, Heinrich examines the kind of security debates that have occurred, what risk/threat perceptions exist, and the nature of the counter-measures that have been proposed in Poland and Germany.

Energy Securitisation: Applying the Copenhagen School’s Framework to Energy

Drawing on Buzan, Waever and Wilde—central to the so-called Copenhagen School in Security Studies—the chapter proposes a way of applying the classic formulation of the securitisation model to energy security. Signalling some important critique that the Copenhagen School model picked up over the last two decades, we propose some reformulations. This proves necessary, as ‘securitisation theory’ does not provide clear guidance for empirical research. Most importantly, extra-ordinary measures which should result from a securitising move—and so, the changes in political practice going beyond what is usually accepted—are specified in a way which enables empirical research of securitisation in the energy sector. Furthermore, we expand the idea of a security speech act, and shift the focus onto securitised discourses, rather than individual utterances. Finally, we delineate ‘securitisation proper’ from similar notions of riskification, security jargon and draw a (de-)securitisation ‘pendulum’, which can move from de-politicisation, through politicisation to securitisation.

Introduction: The political economy of the Caspian oil and gas states

The Caspian oil and gas states have considered the oil boom, which started in the late 1990s, as a great opportunity to achieve economic growth, political stability and geopolitical relevance. However, in the social sciences, the impact of resource booms is viewed rather negatively. In politics, resource booms are said to strengthen authoritarian regimes and to cause bad governance and corruption. This special section examines the major intersections between politics and the energy sector to analyse the political economy of the oil boom in Azerbaijan, Kazakhstan, and Turkmenistan. Thereby, the authors consider the interplay between considerable oil resources and politics, which has given rise to challenges and tensions in these countries. The first two contributions cover the international setting. Although the oil and gas reserves of the Caspian Sea Basin are relatively small globally, they are considered of major geopolitical importance by external powers because they are controlled neither by the Organization of Petroleum Exporting Countries (OPEC) nor by the Russian Federation. Therefore, they offer the United States (US) and the European Union (EU), as well as China, the opportunity to diversify their energy supplies. This opportunity resulted

Mixing geopolitics and business: How ruling elites in the Caspian states justify their choice of export pipelines ☆

As political elites in the Caspian countries see themselves as actors who determine the fate of their countries and not as mere objects of international power struggles or as managers of pipeline projects, this contribution examines how domestic elites assess different pipeline projects. Based on close to 1,500 TV reports from national TV stations, which are seen as the mouthpiece of the ruling elites, we analyze the arguments surrounding oil and gas pipeline debate and construction in Azerbaijan, Kazakhstan and Turkmenistan.