The Gaz-System gas distribution station in Gustorzyn, central Poland, September 12, 2014.
Wojciech Kardas, Agencja Gazeta / Courtesy Reuters

In April, former Polish Prime Minster Donald Tusk published an article in the Financial Times, urging Europe to create an energy union to safeguard against possible energy blackmail by Russia. Reminding readers of disputes in 2006 and 2009 between Moscow and Kiev over gas prices that led to temporary shortages and sharp increases in prices in Europe, Tusk argued that “a dominant supplier has the power to raise prices and reduce supply.” He continued that “the way to correct this market distortion is simple. Europe should confront Russia’s monopolistic position with a single European body charged with buying its gas.”

Tusk, who is currently president of the European Council, puts forth a much-needed common energy policy, but his proposal would be difficult to implement for a number of reasons. For one, an energy union would initiate a diplomatic energy battle between Poland and Germany, whose energy policy, Energiewende, remains inextricably linked to a

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  • PETR POLAK is an associate professor of finance at the University of Brunei Darussalam.
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