Current State and Prospects of Interaction Between Russia and Baltic Sea Region in LNG Market

摘要

The LNG market is characterized by growth and volatility, change of operating conditions. The Baltic states create a gas infrastructure of LNG which is independent of the Russian Federation. Russia has not created the complex strategy of LNG production and export. The research objective is to study the role of the Russian LNG export in the Baltic Sea region, assessment of the Russian possible prospects in the LNG market. The main results of the research include the following: defining competitive advantage of Russia in the Baltic Sea region; determining prospects of creating essential infrastructure of LNG production in the Northwest region of Russia. The Russian Federation has competitive advantages due to short delivery distances, good relationships with the majority of the Baltic states; price advantages; considerable export potential due to the possibility of developing the system of the LNG mini-plants destroying monopoly of the Russian gas exporters. Thus it will allow one to improve the Russian-European relationship in accordance with the possibility of implementing the Third Energy Package of the EU (2009). The theoretical and practical importance of the research is defined by the described tendencies and prospects of the LNG Baltic market development with the Russian Federation cooperation. They can be used for forming strategic programs including implementation of the LNG projects by the Russian companies and incentivized investors. Participation of the Russian Federation in the LNG market of the Baltic Sea region is possible, mutually beneficial and commercially reasonable.