ABSTRACT
This chapter explores that most academic contribution that deal with energy security focus on energy markets. It outlines the concept of multilevel governance (MLG), which applies several components of neo-functionalist thinking. The chapter presents an overview of neo-functionalism as one of the main streams in European integration theory. Functionalism as a theory of international relations (IR) arose parallel to the development of regional and global interdependence. The concept of MLG resulted from the appearance of the European Union (EU) and was coined by Marks. Russian authorities have actively undermined the EU backed project of the Nabucco pipeline by closing deals with for instance Hungary and Serbia in order to make investment in this route financially unattractive and promote its own project South Stream. P. Hogselius concluded that economic considerations have always been more important than political considerations in Russian-European energy relations.
