Poland and Estonia threaten break with Ignalina

Via CV Harquail of Authentic Organizations, the keen blog Corporate Foreign Policy features a post on Poland and Estonia’s impatience with the Ignalina nuclear power plant program, an impatience that is moving Poland toward launching its own nuclear power program:

Poland and Estonia both take a fair political risk in making an announcement like this. It publicly shows how the group is not satisfied with its internal efforts, and invites further lobbying and political meddling from potential suppliers to try and mend the situation, but in their favor. More importantly, it also shows Russia that there is a good chance their new proposed plant in the area will end up doing exactly what they want (and exactly what the Baltic states are trying to avoid) – create energy dependance simply by having the needed supply at the first possible opportunity. This will make it easier for Rosatom to finance their Russian project in the same area.

Energy supply and demand in Europe are following some trends that could potentially culminate in a (mild) Cold War-type scenario of energy chess.  Russia has already shown some strategic moves in energy dependence even as European countries work to diversify their own portfolios.  Interesting times in the Baltics.

3 Responses to Poland and Estonia threaten break with Ignalina

  1. Many thanks for the link – I feel that the autonomous energy initiatives taken by both Poland and Estonia will be met with great Russian opposition and will indeed have repercussions for both impatient governments. It’s still believed that the cheapest source of energy for Poland is still Russia. With regard to their oil supply, for example, “any other source is currently more expensive, although this may change in the future. The problem is that any non-Russian initiative they utilize will just be putting money in other people’s pocket – they aren’t hurting Russia, which can sell its energy elsewhere.” -Tamas Pletser, an analyst with Erste Bank

  2. My pleasure, Sam. I wish I had found your blog earlier–it is a valuable contribution in a niche that can use some solid thinking and debate.

  3. Pingback: Week in Public Organizations, 27Apr2009 « PublicOrgTheory

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