CASE STUDY - Gazprom (TNCs In Energy Supply)

Question 1

How has reliance on Russian gas changed over time?

Answer 1

• Before sanctions were implemented, Bulgaria and other countries were 100% reliant on Russian imports
• From 2017 to 2022, Finland’s reliance on Russian oil reduced by 53% and many EU countries reduced their Russian gas consumption
  From 2021 to 2023, EU reliance on Russian gas declines by 30%

Question 2

What is Gazprom?

Answer 2

A TNC which controls the gas supply in Russia where processes are vertically integrated.

Question 3

Give 3 key facts about Gazprom.

Answer 3

• The Russian state owns 50.002% of the joint stock company
• Accounts for less than 10% of the EU’s gas imports
• The Gazprom headquarters is located in St Petersburg

Question 4

Give 3 examples of price disputes involving Gazprom and Ukraine.

Answer 4

1) In 2006, Gazprom stopped supplying gas to Ukraine to get them to increase their payments
2) In 2014, Gazprom almost doubled the gas price to Ukraine which Ukraine refused to pay, eventually they agreed to pay European prices
3) In 2025, Ukraine terminated all Russian gas transit through its territory.