Russia has not reduced gas supplies to Europe, a European Commission spokesperson told New Europe on January 15. “To our information gas supplies are normal,” she said, brushing off Russian gas monopoly Gazprom’s warnings that there is a risk that Europe could see a drop in supplies piped via Ukraine this winter. She stressed that the “Commission expects that obligations arising from existing gas contracts are met”.
Russia surprised European Union officials again on January 14 with Gazpromsaying it wants its natural gas exports to Europe to bypass Ukraineentirely and go via a proposed new pipeline to Turkey. Last month, Russian President Vladimir Putin, citingEuropean Unionopposition, abruptly cancelled the South Stream pipeline and instead named Turkey as a preferred partner.
Gazprom CEO Alexei Miller said on January 14 that European countries that want Russian gas will have to find a way to build pipelines to connect with Turkey. Russian Energy Minister Alexander Novak stated unilaterally, “The decision has been made”.
The European Commission spokesperson said on January 15 that the Commission takes note of Gazprom’s announcement. “Security of energy supply and gas co-operation in South East Europe and Ukraine are of paramount priority for the European Commission. Commission’s services will analyse Gazprom’s plan with the regard toits economic viabilityas well asregulatory and legal feasibility/consequencesbefore taking a final position," the spokesperson said.
The Commissionwarned Gazprom not to jeopardise its reputation as a reliable gas supplier and respect existing contracts. It called on the Russian company to stay engaged with the EU at early stage and explore all supply options in the southeast region.
European Commission Vice President in charge of the Energy Union Maros Sefcovic, who met with Miller and Novak in Moscow on January 14, expressed reservations about Gazprom’s latest plan, saying “maybe we can find some better solution”. Sefcovic told reporters after talks with Russian officials that the decision makes no economic sense.
Miller said Gazprom plans to send 63 billion cubic metres – the same volume as the cancelled South Stream - through a proposed link under theBlack Seato Turkey, fully replacing shipments via Ukraine. About 40% of Russia’s gas exports to Europe and Turkey travel through Ukraine’s Soviet-era network.
Miller made it clear that Turkey, and not Bulgaria, will become the main gas hub between Russia and Europe. “South Stream is dead. For Europe there will be no other gas transit options to risky Ukraine other than the new Turkish Stream pipeline,”RIA Novosti quoted Miller as saying.
Russia’s relations with the EU have reached a post-Cold War low over Putin’s support for separatists in Ukraine.
Sefcovic said he was “very surprised” by Miller’s comment, adding that relying on a Turkish route, without Ukraine, won’t fit with the EU’s gas system. He said that Gazprom plans to deliver gas to Turkey’s border withGreeceand “it’s up to the EU to decide what to do” with it further. “We don’t work like this,” he said. “The trading system and trading habits -- how we do it today -- are different.”
Echoing similar sentiments expressed by Sefcovic, Naftogaz CEO Andriy Kobolyev said on January 15 that indications that Gazprom plans to abruptly cease its decades-long gas relationship with the EU if it does not link up with Russia’s planned energy pipeline to Turkey are surprising, and make no economic sense.
“Forcing European countries to buy Russian gas at the Turkey-Greece border instead of using Ukraine’s existing infrastructure would abandon a perfectly well-functioning and reliable system in favour of investing billions of euros into a new one – a cost that wouldultimately be paid by European households and businesses and would risk significant technical disruptions without offering any benefits. The same gas would be transferred, just through different channels. As such, this threat is a political bluff,” the Kobolyev said in a statement. He added that the company has taken numerous actions to clearly demonstrate Ukraine’s and Naftogaz’s commitment to EU energy security.
The EU is planning build an Energy Union, one of the political priorities of the Juncker Commission. There is generally broad consensus in Southeast Europe to increase integration of the region as to well as to provide real diversification of gas suppliers to the region, the Commission said.
http://www.neurope.eu/article/russia-pressures-eu-over-turkish-gas-corridor