ABSTRACT
The European Union (EU) has sought to establish a 'rule-based market approach' to energy trade and it is possible to conclude that the attempts by the EU to secure its energy supplies have been twofold. Firstly, the EU has taken internal steps and reformed both its institutional framework and competences of its agents in the realm of international energy trade and security. Secondly, the EU has endeavoured to engage with Russia at bilateral and multilateral legal platforms so as to place its energy trade with Russia on a legal footing. Russia owns and the EU needs an invaluable commodity – energy – for their economic development and security. Russia has always sought bilateral energy trade agreements and instead of open competition and fluid price formation subject to market conditions, it prefers fixed long-term contracts based on 'take-or-pay' clauses and restrictive resale options. The EU has sufficient legal scope to create a common energy policy both internally and externally.
