Russia Abandons the ‘Energy Super-Power’ Idea but Lacks Energy for ‘Modernisation’

The energy sector since the mid-2000s has acquired top priority in Russian state affairs, but since late 2008 it has also become the epicentre of the economic disaster that still continues to affect Russia. President Medvedev has effectively discarded the notion of Russia as an 'energy super-power' and is now focusing on 'modernisation' for Russia's development. But coherence of this course is problematic because the bulk of new investments must go into the energy sector in order to sustain the high revenues. The main flow of these revenues comes from Europe, but Gazprom's position in this market is now seriously undermined.