Brussels, 23/11/2010 (Agence Europe) - Current and future energy inter-dependence between the EU and Russia demands that the two partners stabilise their relations and make them sustainable. Thus Energy Commissioner Günther Oettinger is arguing for a common vision to 2050 on both Russian supply and European demand and on rapprochement of the energy markets, and normalisation of bilateral relations on energy with a stronger legal basis.
Hosting a conference attended by Russian Energy Minister Sergie Shmatko and Belgian Energy Minister Paul Magnette in Brussels on Monday 22 November to celebrate the 10th anniversary of the energy dialogue between the EU and Russia, Oettinger delivered a speech setting out his desire to make the somewhat difficult relations of the past few years much calmer. “The EU and the Russian Federation have in to a large extent compatible interest which we need to jointly pursue, but also different interests which cannot always be brought on a common denominator. This should, however, not be seen as an obstacle to a close partnership and cooperation. … There is no alternative to further strengthen our relations and to start thinking about our joint priorities for the next decades,” he said, basing his argument on clear figures. Russia is the EU's most important energy partner: 31% of total EU gas imports, 27% of total EU crude oil imports, and 24% of total EU coal imports are supplied from the Russian Federation. A large part of the uranium used in the EU is imported from the Russian Federation. Imports are likely to increase substantially by 2030. The EU is by far the largest trade partner of Russia. 47% of all Russian imports originate from the EU, and about 75% of the foreign investments in Russia come from European investors.
For Oettinger, this current and future inter-dependence requires the EU and Russia to stabilise their energy relations. On Monday, the Commissioner and his Russian guest agreed to develop a “common understanding” of the roadmap 2050, based on EU and Russian strategies, scenarios and long-term forecasts. This is, according to Oettinger, “a useful instrument” for coordinating the energy objectives of the two partners and also in the interests of security of supply for the EU and security of demand for Russia.
Stabilising EU-Russian energy relations also requires a strong legal basis, which the partnership and cooperation agreement (PCA), that has been governing energy relations since 1994, can no longer provide given current needs in energy cooperation. Oetinger is calling, therefore, for the new PCA between the EU and Russia to contain a “comprehensive” energy chapter which goes beyond the provisions of the current agreement. A first important step towards a more solid legal basis would, he said, be the accession of the Russian Federation to the WTO.
With the European and Russian energy sectors both facing the challenge to modernise, the commissioner argues that the two partners' priorities should be more closely aligned, that is, the focus should be on energy efficiency and innovative technologies to pave the EU's and Russia's way to sustainable economies and to improve the investment climate and access to their respective markets.
In addition to promoting transparent and market-based relations between producers, transit countries and the consumers, Oettinger argues that the EU and Russian energy markets should be brought closer together, through approximating operating rules, the best way, he said, of simplifying relations in several areas. (E.H./transl.rt)