ABSTRACT
Russian gas is the primary energy source for much of Central and Eastern European (CEE) states, comprising the former Council of Mutual Economic Assistance (CMEA) states, and for some of the former Soviet republics. A gas cut-off would be considered an attack by Russia on a NATO ally, and all NATO members would be obliged to consider exercising individual or collective self-defence, including the use of armed force. Stern argues that it is in the economic interests of Gazprom to cause a relatively small gas deficit in the European market, but not so big a deficit as to raise prices and limit cost-effectiveness of infrastructure building for alternative supplies, or to drive customers to diversify. The money laundering is also a legacy of the Soviet integrated system and the need to quickly create companies for gas trading after the break-up of the Soviet Union.
