Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2nd International Conference on Business and Policy Studies

Series Vol. 14 , 13 September 2023


Open Access | Article

Trade Relations in the European Gas Market Before and after the Russo-Ukrainian War: From a Game Theory Perspective

Han Wang * 1
1 University of Manchester

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 14, 1-6
Published 13 September 2023. © 13 September 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Han Wang. Trade Relations in the European Gas Market Before and after the Russo-Ukrainian War: From a Game Theory Perspective. AEMPS (2023) Vol. 14: 1-6. DOI: 10.54254/2754-1169/14/20230767.

Abstract

Europe is increasingly dependent on Russian natural gas imports. As Ukraine is the main transit country for gas trade between the two sides, the military conflict between Russia and Ukraine, which started in 2014 and has not stopped yet, has led to Europe's gas trade with Russia receiving an impact. Due to the importance of natural gas and the fact that this war was the largest in Europe since World War II, the trade relations between the European and Russian natural gas markets before and after the Russo-Ukrainian war and the diversification of natural gas in Europe have been studied by many scholars. This paper uses a review to summarize and sort out the relevant literature based on game theory to study the gas market trade relations in Europe before and after the Russo-Ukrainian War. According to these scholars, the trade relations between Russia and Europe in the gas market will continue to cooperate despite the impact of the Russo-Ukrainian war. The interruption of gas exports to Ukraine and the construction of pipelines bypassing Ukraine are acceptable to Russia and Europe. Iran, Azerbaijan, Turkmenistan, and Iraq, along with the United States, should actively invest in expanding their gas export capacity to have the opportunity to serve as an alternative to Russian gas and make Europe less dependent on Russian gas imports. This paper provides an understanding of the implications of the Russian-Ukrainian conflict for the world in terms of gas trade. This paper provides a reference for related studies, and to understand the impact of the Russian-Ukrainian conflict on the world from the perspective of the gas trade.

Keywords

europe gas market, Russian-Ukrainian war, game theory, Russia, gas trade

References

1. Roman, M. D., Stanculescu, D. M.: An Analysis of Countries’ Bargaining Power Derived from the Natural Gas Transportation System Using a Cooperative Game Theory Model. Energies, 14(12), 3595 (2021).

2. Cobanli, O.: An application of cooperative game theory (2015).

3. Stern, J., Pirani, S., Yafimava, K.: The Russo-Ukrainian gas dispute of January 2009: a comprehensive assessment. Oxford Institute for Energy Studies (2009).

4. Jafarzadeh, A., Shakeri, A., Ghasemi, A., Javan, A.: Possibility of potential coalitions in gas exports from the Southern Corridor to Europe: a cooperative game theory framework. OPEC Energy Review, 45(2), 217-239 (2021).

5. Richman, J., Ayyılmaz, N.: Can the US and Europe contain Russian power in the European energy market? A game theoretic approach. Energy Strategy Reviews, 26, 100393 (2019).

6. Guo, Y., Hawkes, A.: Simulating the game-theoretic market equilibrium and contract-driven investment in global gas trade using an agent-based method. Energy, 160, 820-834 (2018).

7. Baev, P. K.: Energy Intrigues on the EU’s Southern Flank. Problems of Post-Communism, 57(3), 11–22 (2010).

8. Chollet, A., Meinhart, B., von Hirschhausen, C. R., Opitz, P.: Options for transporting Russian gas to Western Europe: A game-theoretic simulation analysis (No. 2001/10). Diskussionspapier (2001).

9. Meifang Xue. Energy and economic trade relations between Russia and Europe under the new situation: An analysis based on game theory. Chinese Market, (38), 95-96 (2014).

10. Bruegel Blog, https://www.bruegel.org/2022/07/european-union-demand-reduction-needs-to-cope-with-russian-gas-cuts, last accessed 2022/01/27.

11. Bruegel Blog, https://www.bruegel.org/blog-post/can-europe-survive-painlessly-without-russian-gas, last accessed 2022/07/07.

12. Ma, Z., Pei, X., Yi, Y., Liu, Y., Zhang, X.: The impact of the ukraine crisis on the planning of russian-european natural gas pipeline projects. Journal of Coastal Research, 98(SI), 392-401 (2019).

13. Zweifel, P., Krey, B., Schirillo, S.: Russian gas to western Europe: a game-theoretic analysis. Journal of Energy Markets, 2(4), 3-28 (2009).

14. Ehrhart, K. M., Schlecht, I.: Introducing a price cap on Russian gas: A game theoretic analysis (2022).

15. Wenlan Yang. The game of interests in Russia-EU energy trade. Heilongjiang Foreign Trade and Economic Cooperation, (9), 62-64 (2007).

16. Sziklai, B. R., Kóczy, L. Á., Csercsik, D.: The impact of Nord Stream 2 on the European gas market bargaining positions. Energy Policy, 144, 111692 (2020).

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2nd International Conference on Business and Policy Studies
ISBN (Print)
978-1-915371-71-3
ISBN (Online)
978-1-915371-72-0
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/14/20230767
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated