Russia-EU: restoring energy trust

The EU-Russia summit on November 18 is expected to take place in a positive spirit.

The European Union (EU) and Russia, which have endured energy discord for some time, have finally found a point of contact, notably, the Memorandum on the Early Warning Mechanism. On November 16 in Moscow, both sides signed a document which is designed to guarantee a failsafe supply of Russian gas to the EU countries.

At the Russia-EU summit in Khabarovsk six months ago, the energy dialogue between the partners seemed to have deadlocked. After the January gas conflict between Ukraine and Russia left many European countries without Russian gas, Moscow believed that the EU actually sided with Ukraine. European Commission authorities criticized Russia for unreliable gas supplies and Ukraine for questionable transit.

Both the EU and Russia drafted their own proposals for the May summit in Khabarovsk. Russia proposed a conceptual approach to the new legal foundation of international energy cooperation, which was designed to seal a provision on the predictability of energy sales. The European Commission presented a document, which mentioned the early warning mechanism for dealing with transit risk for the first time.

The sides failed to coordinate their proposals in Khabarovsk. In his concluding speech at the May summit, President Dmitry Medvedev emphasized the need to draft new agreements on energy security.

The EU and Russia continued their energy dialogue. Now, having cooled off from last year's gas conflict and in an effort to prevent a recurrence, they drafted the afore-mentioned memo.

They signed it only two days before the regular EU-Russia summit scheduled to take place in Stockholm on November 18. Russian Energy Minister Sergei Shmatko and EU Energy Commissioner Andris Piebalgs signed it in Moscow on November 16.

The early warning mechanism is a package of measures aimed at providing advanced estimates of the possible risks in the supply of and demand for energy products. It provides for prompt response to emergencies, and is designed to prevent an interruption in gas, oil, coal and electricity supplies.

Piebalgs explained that the new document lays out a warning system, procedures for experts, measures to prevent potential supply interruption and a vehicle for implementation.

Shmatko praised the document: "It envisions bilateral measures by Russia and the EU to warn each other about possible risks and apprehensions, and launches a mechanism for coordinated action."

"This is our bilateral document but the transit countries are well aware of it. It is not directed against them, but indicates our consolidated position on preventing interruptions in energy supplies," he said.

Shmatko explained that the document does not stipulate any sanctions against third countries but provides for a coordinated joint action to prevent interrupted supplies. Piebalgs believes that timely payments for Russian gas by Ukraine are the only outstanding problem but that this can be resolved.

Indicatively, Ukraine responded to the memo on November 17. Ukrainian Foreign Minister Pyotr Poroshenko said Ukraine is planning to follow suit and sign an agreement on preventing energy crises with the EU.

Despite references to numerous technical measures, the memo is sooner a diplomatic document, and points to an improvement in the relationship between the two biggest energy partners, none of whom needs a new gas conflict this winter. By and large, Ukraine does not need it, either.

SOURCE: RIA Novosti

DATE: November 18, 2009

Topics: Russia, Europe


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