Publication

This paper assess the state of the Russian natural gas industry, which Gazprom dominates. It examines Putin's ambitions to control Gazprom so he can wield it an instrument of foreign policy, Russia's rising domestic demand for natural gas, the lack of long-term investment in the industry, and Russia's export arrangements. The author argues that paradoxically energy-rich Russia faces a natural gas deficit: either sustain a high level of exports, or divert export gas for domestic consumption. The Kremlin must choose between sacrificing some of its international influence or domestic stability.