Summary
In this paper we criticize the departure of the European Union from its traditional Soft Power vein in foreign energy policy, implying a strategy of corridors diversification in an intense political competition with Russia. We analyze intrinsic limitations of the EU initiative on Nabucco pipeline submitted to the competition of the South Stream project along three different economic perspectives. The Transaction Cost Economics perspective which shows why long-term commitments between producers and buyers are necessary to jointly develop infrastructures and new remote gas fields. The Competition theory perspective which shows the possibility for the SouthStream coalition led by Russia to foreclose the Nabucco coalition entry. And the Coalition theory perspective which sheds light on the weakness of the Nabucco coalition in the competition with the South Stream coalition. We conclude on recommendations concerning the EU gas policy actions which are only relevant when focusing on development of internal insurances and diplomatic action turned towards diffusing legal market regime propitious to energy and gas markets integration.
