Brussels, 22/04/2014 (Agence Europe) - Any economic sanctions between the EU and Russia in the framework of the Ukrainian crisis will not jeopardise supplies of Russian gas to Europe, said European Energy Commissioner Guenther Oettinger on Monday 21 April. The Russian President, Vladimir Putin, has given Kiev one month to resolve its gas dispute with Moscow, before moving to a system of prepaid supply.
Oettinger stated in an interview with the German newspaper Welt am Sonntag of 21 April that any economic sanctions the EU may adopt against Russia or vice versa, due to the current stand-off over Ukraine, would not affect supplies of Russian gas destined for the European market. “My feeling, based on my many discussions with the Russian company Gazprom, is that our partner will fulfil its contractual obligations and wishes to supply gas [to the countries of the EU]. We agreed that in the event of economic sanctions, put in place either by Europe or by Russia, the gas sector would not be affected as a priority”, Oettinger explained (our translation). “I am opposed to the idea of reducing or cutting off our gas links with Russia over the next two years”, as this is the source of nearly 25% of all gas consumed within the EU, he added, but stressed the need for the EU to “continue [its] strategy of diversification”. Algeria, Norway, but also Azerbaijan, which will supply the EU with gas from the Caspian sea through the South gas corridor (the EU will receive 10 billion cubic metres of gas after 2019, or around 20% of its needs), could play an increasingly important role in the European gas market in the future, Oettinger pointed out. The Commissioner also emphasised the importance of production within the EU, in the United Kingdom and the Netherlands (30% of all gas consumed in the EU), and the possibilities of importing liquid natural gas from Qatar or Nigeria.
Oettinger also stressed the need for Europe to help Ukraine, which has accumulated $2.2 billion in unpaid invoices for Russian gas and is refusing the 80% increase in the tariff decided upon in early April by Moscow, to find ways of settling its debt with Russia, in order to avoid a gas war similar to that of 2009. “It is vital that we overcome any gas crisis and ensure energy security for the winter. If we do not help Ukraine to pay $2 billion, Russia will not supply it with any gas”, he stated.
The same day, the President of the Commission, José Manuel Barroso, said that the EU agreed to talks with Moscow on the security of gas supply for the EU and for Ukraine, whilst the Russian President Vladimir Putin turned up the pressure on Europe and Ukraine a little more on 17 April, giving Kiev one month to settle its dispute with Moscow, on pain of having to move to a prepayment system at the end of that period. Moscow previously made this threat in a letter to 18 member states of the EU dated 10 April. (EH)