Russia Will Restart Gas Exports To EU

Russia agreed to restart gas exports to the European Union via Ukraine on Tuesday morning, potentially ending supply cuts that have stoked concerns over the Continent's energy security and left tens of thousands of Europeans without central heat in freezing temperatures.
Τρι, 13 Ιανουαρίου 2009 - 20:39

Russia agreed to restart gas exports to the European Union via Ukraine on Tuesday morning, potentially ending supply cuts that have stoked concerns over the Continent's energy security and left tens of thousands of Europeans without central heat in freezing temperatures.

Further stoppages are possible, EU and Russian officials said, because disputes remain over which side -- Moscow or Kiev -- should provide the gas volumes needed to pump Russia's exports to the EU, as well as over what price Ukraine should pay for its own gas imports from Russia.

"If there are not obstacles, supplies will be restarted tomorrow" at 8 a.m. Brussels time, Alexander Medvedev, deputy chief executive of Russian gas monopoly OAO Gazprom, told reporters in Brussels. It would take a further 24 hours to 30 hours for the gas to reach the EU, said EU energy commissioner Andris Piebalgs.

Monday's apparent breakthrough came when all three parties signed, for the second time, an agreement setting the terms of reference for teams of experts who will monitor Ukraine's gas-transit network. Moscow had balked at the deal on Sunday, when Kiev attached a separate, unilateral declaration that set out Ukraine's own position.

European Commission President Jose Manuel Barroso said on Monday that there was "no excuse" for further delays in resuming gas supplies.

The second winter gas stoppage to the EU in three years triggered renewed demands for the 27-nation bloc to reduce its dependence on Russian gas. Despite a similar disruption in 2006, the EU has taken few steps to become less reliant on Russia. The EU gets about a quarter of its natural gas from Russia, though in some countries that figure rises to 100%.

An emergency meeting of EU energy ministers in Brussels on Monday called for action to diversify supply routes and to build more interconnections between national gas systems and more liquefied natural-gas terminals. A follow-up meeting is set for Feb. 19.

Bulgaria, the EU nation worst hit by the weeklong gas cut-off, said it had asked the bloc to consider providing 900 million euros ($1.2 billion) to fund four gas-infrastructure projects -- interconnector pipes to Romania and to Greece, more underground gas storage and an LNG terminal. Bulgaria gets almost all of its gas from Russia, via Ukraine.

At the meeting, Romania's energy minister called for accelerating the Nabucco pipeline project, according to an EU official. The pipeline would bring gas from the Caspian Sea region, and perhaps from Iran and Iraq, to the EU via Turkey, skirting Russia. Nabucco, however, has been slowed by uncertainty over whether there will be sufficient gas to fill it.

Russia, which blames Ukraine for the gas cut-off, has said the EU should respond by supporting two pipelines to bring Russian gas to Europe, via the Baltic Sea and the Black Sea. These would circumvent Ukraine, ending its lock on Russian gas exports to the EU. Currently, 80% of Russian gas exports to the EU pass through Ukraine.

The gas cut-off has cost Gazprom more than $800 million in lost revenue so far and damaged its image, according to Russian Prime Minister Vladimir Putin.

Mr. Piebalgs said the new monitoring mission would enable the EU for the first time to determine whether Moscow or Kiev is responsible should supplies not flow. He also said that if supplies are disrupted again, the EU was ready to abandon its neutrality in the dispute and assign blame.

Russian accusations that Ukraine was stealing gas destined for the EU triggered a total cut-off in export flows last week. Ukraine denied theft and said it was merely taking the "technical" gas needed to pump Russia's gas exports to the EU.

It wasn't clear Monday evening whether, as Kiev said in its declaration on Sunday, Ukraine would go on taking technical gas once exports resume. Russia promised Monday to take an uncompromising line if that happens.

"Tomorrow, we must guarantee that the amount of gas entering the Ukraine is equal to the amount leaving Ukraine. There must be no disparity," said Russian Deputy Foreign Minister Alexander Grushko.

In Moscow, Sergey Markov, a lawmaker for Mr. Putin's United Russia party, said that by insisting that Ukraine sign up to Russia's terms of reference for international monitors, Moscow had shown the world that it couldn't be blackmailed. "It's the Putin principle," he said in a phone interview. "You'll never achieve anything by pressuring us."