Cold War Energy: A Transnational History of Soviet Oil and Gas PDF
Preview Cold War Energy: A Transnational History of Soviet Oil and Gas
Edited by J e r o n i m P e r o v i c Cold War Energy JeronimPerovic´ Editor Cold War Energy A Transnational History of Soviet Oil and Gas Editor JeronimPerovic´ DepartmentofHistory UniversityofZurich Zurich,Switzerland ISBN978-3-319-49531-6 ISBN978-3-319-49532-3 (eBook) DOI10.1007/978-3-319-49532-3 LibraryofCongressControlNumber:2017930572 ©TheEditor(s)(ifapplicable)andTheAuthor(s)2017 Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher, whetherthewholeorpartofthematerialisconcerned,specificallytherightsoftranslation, reprinting,reuseofillustrations,recitation,broadcasting,reproductiononmicrofilmsorinany otherphysicalway,andtransmissionorinformationstorageandretrieval,electronicadaptation, computersoftware,orbysimilarordissimilarmethodologynowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthis publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesare exemptfromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationin thisbookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublisher northeauthorsortheeditorsgiveawarranty,expressorimplied,withrespecttothematerial contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Coverillustration:©JeronimPerovic´2016 Printedonacid-freepaper ThisPalgraveMacmillanimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland P E REFACE BY THE DITOR The history of the Cold War remains incomplete without taking into consideration the role of Soviet energy, in particular in relation to oil and natural gas. The various Soviet campaigns to extract natural resources in ever-larger quantities were means to support the needs of the country’s military as well as its energy-intensive economy. However, Soviet energy exports also served as an important tool in Moscow’s project to integrate the socialist states of Eastern Europe into a single economic space. With regardtothestatesofthecapitalistWest,Sovietenergyexportlargelyserved the purpose of gaining access to technology and hard currency. While the growing share of “red” oil and gas in European energy consumption was viewedwithsuspicionintheWest,Moscowtoohadreservationsaboutthe prospect of the Soviet Union becoming increasingly dependent on for- eigners for technology inputs and hard currency. During the period of détente in the 1970s, however, trade in energy was to become the main driverofSoviet–WestEuropeaneconomiccooperation,eventuallyevolving into the kind of East–West energy interdependence that determines rela- tionsbetweenRussiaandEuropetothisday. If anything, the Soviet Union was a rather reluctant energy power. Considering only official statistics, the story of Soviet energy is one of success, as oil and gas extraction and export figures rose year by year, making the Soviet Union one of the world’s leading international energy powers.Butinactualpolitics,theissueofenergywasmoreoftenaburden ratherthananasset.TheimageportrayedintheWestduringtheColdWar abouttheSovietUniontryingtouseenergyasapoliticalweapon,asaway v vi PREFACEBYTHEEDITOR to tighten its grip over its Eastern European allies and counter American influence in Western Europe, is at least partly misleading and in need of revision.Also,theviewthatSovietenergypolicywasgenerallydrivenbyan expansionist geopolitical agenda ignores the fact that the Soviet Union repeatedlyfaceddomesticenergyshortages,andMoscowsawcooperation withWesterncompaniesandstatesasawaytoovercomeinternaleconomic problems. In East–West relations, Soviet energy was at times a cause of tensionandconfrontation,butmuchmoreoftenapolitical“softener.”The IronCurtainwasadividinglinebetweenEastandWest,butnowherewas thiscurtainmoreporousthaninthedomainofenergyflows. This book takes a fresh look at international relations during the Cold War,challengingsomeofthelong-standingassumptionsofEast–Westbloc relations,aswellassheddingnewlightonrelationswithintheblocsregard- ing the issue of energy. By bringing together a range of junior and senior historiansandspecialistsfromEurope,RussiaandtheUS,thisbookrepre- sentsapioneeringendeavourtoapproachtheroleofSovietenergyduring the Cold War in a comprehensive manner, putting it into a transnational perspective. The research for this volume was originally undertaken for a conference titled“Oil,GasandPipelines:NewPerspectivesontheRoleofSovietEnergy During the Cold War.” This event, which took place at the University of ZurichonJanuary14–16,2015,wasorganizedbyJeronimPerovic´together withDunjaKrempinandFelixRehschuhfromtheDepartmentofHistoryof the University of Zurich, and was financed by the Swiss National Science Foundation(SNSF)andtheHochschulstiftungoftheUniversityofZurich. This book contains a selection of papers, which were first presented at this international conference. The authors revised their papers based on discus- sionsduringtheconference,theeditors’commentsandtheinputsprovided byananonymousreviewer. Theeditorwouldlike,inparticular,tothankallparticipantsoftheconfer- encewhoprovidedusefulcommentstotheauthorsinpreparingtheresultant chapters. They were Margarita Balmaceda, Alain Beltran, Elisabetta Bini, Nada Boškovska, Roberto Cantoni, Nataliia Egorova, Falk Flade, Rüdiger Graf,JussiHanhimäki,PerH€ogselius,NiklasJensen-Eriksen,SuviKansikas, GalinaKoleva,DunjaKrempin,GiacomoLuciani,LorenzLüthi,Viacheslav Nekrasov, David Painter, Tanja Penter, Felix Rehschuh, Oscar Sanchez- Sibony, Benjamin Schenk, Hans-Henning Schr€oder, Andreas Wenger, and Jean-PierreWilliot. PREFACEBYTHEEDITOR vii The editor would like to thank Dunja Krempin and Felix Rehschuh for their help in organizing this conference, and FelixFrey, Regina Klaus, Tom Koritschan,andMarkusMirschelfortheirlogisticalsupportduringtheevent. ChristopherFindlayandTomKoritschanprovidedvaluablehelpintheprep- aration of this book. The editor would also like to thank Molly Beck, Dhanalakshmi Jayavel,and Oliver DyeratPalgrave Macmillan for theirsup- portduringthepublicationprocess. September2016 JeronimPerovic´ C ONTENTS TheSovietUnion’sRiseasanInternationalEnergy Power:AShortHistory 1 JeronimPerovic´ TheBolsheviks’AttitudeTowardOil 4 OilinWartime 7 ThePoliticsofOilTrade 9 TheSoviet“OilOffensive” 11 TheOilShockof1973/74andMoscow’sCharmOffensive 14 ImplicationsoftheSoviet“EnergyCrisis”forEasternEurope 19 TheIranianRevolutionandtheBuildingofthe“World’sBiggest Pipeline” 22 “SiberianMight”andGasforEurope 24 StructureandOverviewofthePresentVolume 27 PartI FromWorldWartoColdWar:SovietOilandWestern Reactions 45 FromCrisistoPlenty:TheSoviet“OilCampaign”UnderStalin 47 FelixRehschuh OilPoliticsand“SecondBaku”intheInterwarPeriod 49 TheSovietOilComplexandItsEasternPartsDuring WorldWarII 54 ix x CONTENTS ThePostwarYears 59 Conclusion 66 Stalin’sOilPolicyandtheIranianCrisisof1945–1946 79 NataliiaEgorova Introduction 79 ShortHistoricalOverview 83 TheUSSR’sGrowingInterestinIranianOil 84 TheUSSREnterstheCompetitionforOilResources 86 Kavtaradze’sOilMissioninIran 88 ContinuingSovietStruggles 90 TheDevelopmentoftheIranianCrisisandtheOilQuestion 94 ConsequencesoftheIranianCrisis 97 “RedOil”andWesternReactions:TheCaseofBritain 105 NiklasJensen-Eriksen Introduction 105 SovietOilExports 107 “PatronsoftheUKOilCompanies” 109 TheFirstRound 110 TheSovietsandtheBoardofTradeAttack 115 DreamsofanOilCartel 117 OilforShips 119 Conclusion 122 DebatesatNATOandtheEECinResponsetotheSoviet“Oil Offensive”intheEarly1960s 131 RobertoCantoni Introduction 131 TheSoviet“OilOffensive”andWesternReactions 134 TheSovietOilThreatattheEEC 137 ADangerousFriendship 140 TroublesofaSpecialRelationship 144 Conclusion 149 CONTENTS xi PartII FromColdWartoDétente:SovietEnergyandthe ExpansionofEast–WestTrade 163 Decision-MakingintheSovietEnergySectorinPost-Stalinist Times:TheFailureofKhrushchev’sEconomicModernization Strategy 165 ViacheslavNekrasov Introduction 165 GenesisofandRationaleBehindKhrushchev’s“Petrochemical Project” 167 The“PetrochemicalProject:”HighAmbitionsandInitialSuccess 170 Gosplan,InterestGroups,andtheCrisisofthe“Petrochemical Project” 172 The“GasPause”intheSovietEconomy(1963–1964) 176 Khrushchev’sAttemptatReconstructingHis“PetrochemicalProject” (1962–1964) 178 TheExportofOilandGas:PotentialsandProblems 181 Khrushchev’sOppositiontoanAcceleratedConstructionofOil andGasPipelines(1963–1964) 188 Conclusion 190 AChallengetoColdWarEnergyPolitics?TheUSandItaly’s RelationswiththeSovietUnion,1958–1969 201 ElisabettaBini Italy’sChallengetothe“SevenSisters” 203 ENI’sContractswiththeSovietUnion 207 USReactionstoENI’sAgreements 210 BetweenBipolarismandDe´tente 217 Conclusion 222 GazdeFranceandSovietNaturalGas:BalancingTechnological ConstraintswithPoliticalConsiderations,1950sto1980s 231 AlainBeltranandJean-PierreWilliot FromTechnicalPartnershiptotheEmergenceofRealInterest inSovietGas(1956–1969) 233 TheFrenchGasSectorConsidersSovietContractsasaSource ofSupply(1969–1979) 236
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