This report focuses on potential approaches that Europe might employ to diversify its sources of natural gas supply, Russia's role in Europe's natural gas policies, and key factors that could hinder efforts to develop alternative suppliers of natural gas. The report assesses the potential suppliers of natural gas to Europe and the short- to medium-term hurdles needed to be overcome for those suppliers to be credible, long-term providers of natural gas to Europe. The report looks at North Africa, potentially the most realistic supply alternative in the near term, but notes that the region will have to resolve its current political, economic, and security instability as well as the internal structural changes to the natural gas industry.

This report discusses the current political and economic conditions in Russia, focusing on the impact of Vladimir Putin's leadership and the leadership of his successor/protégé, Dmitriy Medvedev, both of which have steered Russia away from progress toward democratization. The report also discusses the state of the economy since the Soviet collapse in 1999, how the recent global economic downturn has affected Russia, the state of Russia's military, and the current relationship between Russia and the United States.