Brussels, 01/04/2014 (Agence Europe) - The European Union and the United States will work together to help diversify energy supplies for the EU and Ukraine.
In the wake of the Ukrainian crisis and tension with Russia following its annexation of Crimea, EU High Representative for Foreign Affairs Catherine Ashton and US Secretary of State John Kerry agreed on Wednesday 2 April to increase transatlantic energy cooperation to help the EU and Ukraine diversify the sources of their energy supplies, thus making them less dependent on Russia, which supplies most of their gas and some of their oil. This was the message sent out by the fifth EU-US energy council, attended by EU Energy Commissioner Günther Oettinger, Greek Energy Minister Ioannis Maniatis and US Deputy Energy Minister Daniel B. Poneman.
“Developments in Ukraine have brought energy security concerns to the fore and prove the need to improve energy security in Europe. The EU and United States recognise that our energy security concerns and those of our friends and partners pose common challenges, and are considering new collaborative efforts to address these challenges”, explains a joint final statement, adding: “Energy relations with Russia must be based on reciprocity, transparency, fairness, non-discrimination, openness to competition and a continued cooperation to ensure a level playing field for the safe and secure supply of energy”.
Russia is using gas prices to exert pressure on Ukraine, and the EU and US want to prevent energy being used as a “political weapon” and “instrument of aggression” said Kerry after the meeting. He said that no country should use energy to oppose the aspirations of peoples and it cannot be allowed for countries to use energy as a political weapon or instrument of aggression. Russian gas company Gazprom increased gas prices for Ukraine by more than a third on 1 April by ending the special low prices it had previously granted to the country.
On Wednesday, the EU and the US reiterated their “strong support” for Ukraine's efforts to diversify its supplies of natural gas, including through the rapid enhancement of reverse flow capacities in the gas pipeline network which links it to Europe. The Commission urges Slovakia, which is one of the main gateways for Russian gas coming into Europe via Ukraine, to sign an agreement with that country which would allow reverse flow supplies to Ukraine, in the event of a shortage due to an interruption to supplies of Russian gas. Transatlantic support also focused on Ukraine's efforts to increase its gas storage capacity, reform its gas market and restructure its national gas company, Naftogaz. “All near-term actions to improve Ukraine's energy security should be pursued in the context of the strategic vision of full integration into the European energy market”, reads the joint statement, stressing the commitment of the EU and the US to work with Ukraine on the necessary legislative and regulatory reforms.
Transatlantic support to Ukraine, but not just Ukraine: the United States will also lend a hand to the diversification efforts undertaken by the EU to reduce its energy dependency on Russia. On this, the transatlantic Council welcomed the decision made by the European Council of 20-21 March on the issue of its external energy dependency, particularly by means of increased diversification of its sources and routes of supply. In this context, both sides welcomed the prospect of possible exports to the European market of American LNG, production of which has been bolstered by the shale gas revolution. Lastly, the transatlantic partners on Wednesday reaffirmed the importance of the Southern gas corridor to bring gas to Europe from Central Asia and called for the construction of a scalable pipeline to keep the options open for supplies other than those from Azerbaijan.
The two sides will have the opportunity to hone their work on energy security at a forthcoming meeting of the energy ministers of the G7 on this issue. (EH)