Russia sets out conditions by which it is prepared to conclude a long-term agreement with the EU over energy supplies

Brussels, 06/10/2000 (Agence Europe) - The recent suggestion by President Romano Prodi aimed at an energy partnership with Russia guaranteeing Russian gas and oil deliveries to the European market fr at least the next 20 years, will be one of the main topics of the agenda for important meetings between the EU and Russia scheduled for the coming weeks. The "Prodi Plan" has already been the subject of discussions and consultations between the Commission's services and the Russian Ministry of Energy; the meeting of the EU/Russia Cooperation Committee (body that manages the Partnership and Cooperation Agreement that meets at senior official level), in Moscow on 12 October will enable this issue to be looked at in more depth and for details to be sketched out. Then, the EU/Russia Summit of 30 October in Paris (in which Russian President Vladimir Putin will take part), should be crucial as to whether this project has the political backing of both parties at the highest level.

At a meeting in Brussels late September with Russian Deputy Prime Minister, Viktor Khristenko, Prodi had explained his project which, then, was presented to President Putin by German Chancellor Gerhard Schroeder on a visit to Moscow. The aim is clear: in view of reducing the EU's dependency on the Gulf States and other OPEC producers for oil, the EU would place more weight on gas, notably an increase in gas imports from Russia. Russia has large reserves, but it needs foreign investments to exploit these resources and put in place the necessary transit infrastructures to channel the gas to consumption markets in Europe. Whence Prodi's suggestion: the EU would use its political clout and technical assistance to direct the necessary investment towards Russian production and transit plans.; in return, Russia would guarantee Europe increased energy supplies (especially gas), as well as long-term provision stability (20 years at least).

This week, in an interview with Uniting Europe (weekly Agence Europe bulletin on enlargement, see No. 116 of 9 October), Russian Deputy Foreign Minister Ivan Ivanov formally stated that Russia was deeply interested in such an agreement with the EU, on condition that:

• The agreement is not limited to gas and oil, but also covers electricity, other types of fuels, as well as trade in oil products;
• The European investment Bank (EIB) undertakes to underwrite the necessary investments in Russia for the creation or development of new production, transport, distribution and refining infrastructures for energy resources (so far, the EIB has refused to commit itself in the Republics of the former USSR, including Russia);
• The EU takes measures to abolish certain "existing obstacles" to Russian energy exports to the European market;
• The EU undertakes to politically promote the development, extension and construction of new alternatives for the transit of gas and ol from the Caspian Sea and Russia to Europe, passing through the North (avoiding Ukraine), rather than continuing to back the Baku project (Azerbaijan-Ceylan - Turkey) as is currently the case in the framework of the Community INOGATE programme (Insterstate Oil and Gas Transport to Europe);
• The EU put pressure on Ukraine (an as yet unavoidable transit country for a major share of Russian gas and oil exports to Europe) which, according to Deputy Minister Ivanov, is "stealing Russian gas" in transit);
• The EU tries to convince Poland to allow the construction of new gas pipelines through its territory to Germany (from Russia, crossing Belarus), and this so as to create an alternative to the current single path that passes through Ukraine.