The EU and European transnational companies in Central Asia: relocating agency in the energy sector

Abstract

This article argues that in the contentious energy market of Central Asia transnational corporations (TNCs) and local governments are the real forces at play. While the European Union (EU) has repeatedly shown interest in the region, scarce profitability of the economic ventures and lack of control over the actual investors have resulted in a loss of interest. Deconstructing the EU energy security strategy towards Central Asia, this article reflects how TNCs formally based in Europe have used the ‘Shield of Nationality’ as protection from the blows of resource-rich governments, while remaining driven by capital accumulation. A case study of the Italian oil and gas company ENI in Kazakhstan highlights how the mediation of home governments between corporations and local administrations depends on its relationship with the TNC. The article suggests that future research of the energy sector should consider the role of TNCs and their ambiguous relationship with their ‘home countries’.