Gazprom Needs Its European Customers More Than Ever

In 2016, Gazprom, the state-owned Russian natural gas producer, achieved what it calls a record share of the European Union's gas market -- 34 percent, compared with about 30 percent the year before. But wait a minute, wasn't Europe trying to reduce its Russian gas dependence?

On a political level, yes. Economically, though, the EU has pursued, and largely attained, a different goal -- to stop Gazprom from abusing its monopoly power in Eastern Europe. As soon as Gazprom mostly accepted the rules of the game, its prices became so attractive for European customers that they've seen no point in buying less Russian gas. As for Gazprom itself, increasing market share in Europe has cost it dearly, but it's taking this in stride because it's playing a complex, high-stakes political and economic game aimed at getting Europe to accept its plan for a major pipeline bypassing Ukraine.