Russia Fails to Defeat Fracking

Gazprom, Russia’s government owned natural gas company, has for decades supplied many Eastern European countries with most or all of their natural gas. It has also had a habit of using its dominant market position to bully its customers into paying more, often by cutting off natural gas supplies needed for heating in midwinter. Gazprom reduced or completely stopped flows of gas to Ukraine in 2006 and 2008, to 18 European countries in 2009, to Ukraine and Poland in 2014, and to Ukraine, Bulgaria, Romania, Slovenia and Bosnia in 2015.

Several years ago Russia and Gazprom identified U.S. hydraulic fracturing technology (fracking) as a threat to Gazprom’s market share, especially its near monopoly over supplying gas to Eastern Europe. The Russians realized that fracking technology had the potential to undermine their position by increasing the development of natural gas that would compete on the open market with Russian gas. In an attempt to address this threat, Russia turned to RT (formerly Russia Today), Russia’s government controlled television network aimed at influencing audiences outside of Russia.

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