Brussels, 22/02/2011 (Agence Europe) - Ahead of the introduction in the EU on 3 March 2011 of the third package of EU rules on liberalisation of the energy markets, based on the unbundling of energy operators by separating supply and generation/production businesses to ensure non-discriminatory access to energy grids, Russia is concerned about the negative impact the new EU laws will have on its own energy industry and the dangers to investment and price volatility.
A video-conference was held in Moscow and Brussels on Monday 21 February 2011 on the third package of EU energy rules and how to reconcile the irreconcilable. It was organised by Ria Novosti, and was attended by the head of the Russian Gas Association and deputy speaker of the lower chamber of the Russian parliament, Valery Yazev. The Russian press agency explained that the 4 February 2011 EU summit on energy “adopted ambitious plans to reduce the EU's dependency on oil and gas and build a new generation of energy infrastructure. The EU has confirmed its commitment to establishing a reliable, transparent and rule-based energy partnership with Russia. Yet despite this, Russian and EU authorities have so far failed to come to terms on settling discrepancies in the gas sector. On 3 March 2011, EU countries will begin applying the Third Energy Package. What risks will Russia face after March 3? What will happen to Russian utility companies on the EU market after the Third Energy Package goes into effect? Could property rights be lost and pricing policy be changed? What obstacles might EU investors come across on the Russian energy market?” The questions reflect the uncertainty faced by Russia, whose energy industry is dominated by juggernauts like gas company Gazprom.
The day before a meeting in Brussels on Tuesday between the European Commission and Russian prime minister Vladimir Putin to discuss energy and other issues, Yazev pointed out Russia's fears, being critical of the dangers that the liberalisation of the energy markets is generating in terms of investment in Russian infrastructure connected with the German-Russian gas pipeline under the Baltic Sea, known as North Stream. He said there would be two pipelines to link North Stream up to Germany, namely Opal and Nel, but only one is currently being built, the other not because it is being hampered by adoption of the EU's third package of energy legislation, which has made it less attractive to investors, according to a Russian official. The Russia Gas Society has submitted proposals to the Russian committee responsible for energy dialogue with the European Commission, he said. One of the main ideas is for investment already made by Russian companies to be made secure, explained Yazev in a report by Reuters. He also blamed Poland and Lithuania for sticking to the letter rather than the spirit of the EU internal energy market laws. Yazev warned of the risk of high prices for gas supplied by Gazprom, saying that “Poland and Lithuania opt for a very straightforward way - they believe Gazprom should get out of the shareholder structure of the projects”. Yazev said that “there are certain risks … The price for Lithuania would be increased because of more risks”. (E.H./transl.fl)