CEE FOCUS
Quarterly Publication of Constellation Energy Institute

-- Summary --

Russia-Ukraine Conflict: Aftermath and Lessons Learned.

The underlying factors that caused the gas conflict of January 2009 continue to develop, as indicated both by continued gas supply problems and by lack of progress towards a long-term sustainable solution. Moreover, when confronted with the cold reality of political and economic constraints, many of the optimistic initiatives floated during the crisis have begun to wither. Most prominent of these is the Nabucco pipeline project, but both the revival of nuclear power and regional interconnection to increase the robustness of the energy system have also had setbacks. The dispute appears to have pushed the European Union to prepare better for future short-term crisis management but the question remains whether Europe understands that not only short-term crisis management but long-term solutions are needed, as well, among them meaningful diversification of energy sources, suppliers and routes. See details on page 4.

Nabucco and South Stream: Are They for Real?

Despite the continued problems between Russia and Ukraine, the EU appears to be becoming ever more hesitant about Nabucco. Meanwhile, Russia is signaling increasing commitment to South Stream despite rising financial problems. This current period of Russian economic weakness may be the best possible time for Europe to push forward with Nabucco. Some speculate that South Stream is only a bluff to divert attention from the aforementioned pipeline. Yet, regardless of whether South Stream is plausible, if Europe remains unwilling to support Nabucco strongly, it needs to be clear about this and begin to discuss the shape of Europe's energy security system without it. See details on page 9.

EDITORIAL: EUR 5 billion Stimulus Plan: Is It Really a Stimulus?

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SHORT NEWS

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WHAT TO WATCH?

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