This paper will cover the hurdles in a relationship by the exports of oil and gas through different companies of Russia and Europe, bone of contention involves around the price mechanism involved, feasibility of pipelines and transit routes. In this paper, I will explain possibilities and prospects to Russia-EU energy relationship in detail. From EU point of view, diversification of energy supply has been a major challenge through searching internally as well as externally. I will discuss an importance of renewable sources of energy in European countries owing to inadequate oil resources.