This report begins with a brief discussion of the Russian oil and gas industries, including their efforts to purchase energy infrastructure in central and eastern Europe and reduce energy subsidies to neighboring countries. A second section deals with the impact of Russian energy policy on neighboring countries, all of them formerly part of the Soviet Union, de facto or de jure, and all heavily dependent on Russian energy imports. Many of these countries are concerned about what they see as Russian efforts to manipulate that dependency to achieve political goals. A final section deals with U.S. efforts to promote the energy security of these countries and on Congress's response to the issue.

This report discusses the issues surrounding whether or not the U.S. should grant Russia permanent normal trade relations (PNTR) following its accession into the World Trade Organization (WTO). The change in Russia's trade status will require legislation to lift the restrictions of Title IV of the Trade Act of 1974 as they apply to Russia, which includes the "freedom-of-emigration" requirements of the Jackson-Vanik amendment.