Título: Europe
"Isolates" Putin? Considers "Reframing" Energy Relations
With Russia
Texto: It appears
President Obama's "costs" imposed on Russia have boomerang'd just too
much for Europe to take. As Reuters reports, The EU is seeking to create a
single energy market, based on cross-border connections to improve security of
supply and reduce dependence on Russia, which supplies roughly one third of EU
energy. The headline pivot away from Putin, likely misses the fact that there
is very little a stagnating Europe can do, even in the medium term, to 'reduce'
dependence on Washington's nemesis.
As Reuters
reports,
The European
Union will consider "reframing" energy relations based on market
conditions with Russia when the time is right and for now is focusing on
building a strategic gas partnership with Ukraine, a draft document shows.
The European
Commission, the EU executive, is seeking to create a single energy market,
based on cross-border connections to improve security of supply and reduce
dependence on Russia, which supplies roughly one third of EU energy.
Next week, the
Commission is expected to publish formally its strategy on an energy union.
"When the
conditions are right, the EU will consider reframing the energy relationship
with Russia based on a level playing field in terms of market opening, fair
competition, environmental protection and safety, for the mutual benefit of
both sides," a draft of the Energy Union Package seen by Reuters says.
For now, it says
particular attention will be paid to upgrading "the strategic partnership
on energy" with Ukraine.
It says it will
address Ukraine's importance as a transit country, as well as improving
infrastructure and Ukraine's energy efficiency to reduce its dependence on
imports.
Russia's
long-standing gas relations with the EU and Ukraine, the main transit route for
Russian gas to the EU, have deteriorated since Russia's seizure of Ukraine's
Crimea region last year.
* * *
Título: Putin
tells Europe Ukraine gas debt 'critical', transit threatened
Texto: President
Putin has written to 18 European countries, warning that Ukraine’s debt crisis
has reached a “critical” level and could threaten transit to Europe. He also
called for urgent cooperation, blaming Russia’s partners for a lack of action.
Among the
countries who’ll receive the letter are major consumers of Russian gas such as
Germany, France, Italy, Greece, Turkey, Bulgaria, Moldova, Poland and Romania.
Given the
accumulated $2.2 billion gas debt owed by Ukraine’s Naftogas, Russia’s Gazprom
will be forced to ask Ukraine for advance payments, Putin said in his letter to
European partners, referring to the 2009 gas contract signed between Moscow and
Kiev.
“In other words,
we’ll be supplying exactly the volume of gas that Ukraine pays for a month in
advance,” as Itar -Tass quotes Putin's letter.
Putin added that
introducing advance payments would be an extreme measure.
“We understand
that this increases the risks of unsanctioned retrieval of gas flowing through
the territory of Ukraine to European consumers. And it could also hinder
accumulation of gas supplies in Ukraine necessary to provide for consumption
during the autumn-winter period.”
Stable transit of
Russian gas to Europe would require an additional 11.5 billion cubic meters of
gas for Ukraine’s underground storages, which would cost $5 billion, Putin
explained.
Aid from Moscow
Given all the
discounts Russia has provided in the last four years, Moscow has subsidized
Ukraine’s economy to the tune of $35.4 billion, coupled with a $3 billion loan
tranche in December last year.
“I would
underline – nobody except Russia has done this,” Putin wrote in the letter.
“And what about
[our] European partners? Instead of real support for Ukraine – declarations
about intentions. Promises without real action.”
The European
Union has traditionally used Ukraine as a source of foodstuffs, metals, mineral
resources and as an export market for its machinery, chemicals and other
highly-processed goods. This creates a trade deficit of above $10 billion,
which is almost two-thirds of Ukraine’s 2013 current account deficit, the
letter explained.
“Russia should
not and cannot any longer bear the brunt of supporting the Ukrainian economy
alone, giving it gas discounts and forgiving debts. In fact, with these
subsidies Russia pays for a deficit in trade between Ukraine and the EU member
states.”
Immediate
consultations with European countries receiving the letter are the only
possible way to resolve Ukraine’s crisis, Putin said.
We need “to start
coordinated action as soon as possible. And we urge our European partners to do
this,” he wrote.
Russian gas in
Europe
Russia’s biggest
gas client is Germany which imports over 25 billion cubic meters of gas from
Gazprom each year, about a third of its energy needs. Italy is another big
importer, also relying heavily on Russian imports as deliveries from North
Africa have proved unreliable.
Lithuania,
Estonia, Finland, Latvia, Bulgaria and the Czech Republic import 100 percent of
their natural gas from Russia.
Ukraine’s total
debt to Russia, including the $2.2 billion bill for gas, now stands at $16.6
billion, Prime Minister Dmitry Medvedev said on Wednesday.
Gazprom has
revoked all discounts and now charges $485 per 1,000 cubic meters of gas, a
price Ukraine says it will not be able to pay because it threatens Ukraine's
ability to continue normal gas transit operations to Europe.
Moscow cut off
gas transit through Ukraine to Europe in the winters of 2006 and 2009 over
similar unpaid bills to Gazprom, which left parts of Europe without heat.
Moscow claims Ukraine illegally siphoned off supplies intended for Europe
during this time, an accusation Kiev denies.
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