Russia and EU agree on gas supply alert mechanism

Background

Last winter, millions of EU citizens were left in the cold because of a gas dispute between Russia and Ukraine (see EurActiv LinksDossier). 

Russian gas supplies to Europe via Ukraine - a route that supplies a fifth of Europe's gas - were halted for more than two weeks in January due to a quarrel between Moscow and Kiev.

During the last EU-Russia summit in Khabarovsk, the president of the European Commission, José Manuel Barroso, and the president of the Russian Federation, Dmitry Medvedev, agreed to strengthen provisions under the EU-Russia Energy Dialogue to prevent and manage potential energy crises, by enhancing the Early Warning Mechanism (EurActiv 14/05/09). 

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The agreement requires both sides to notify the other of any likely disruption to supplies of oil, natural gas or electricity and to work together to resolve the problem. Third parties would also be allowed to participate, the European Commission said.

"An energy crisis like the one the EU suffered in January is harmful for supply, transit and consuming countries alike," EU Energy Commissioner Andris Piebalgs said after signing the agreement with Russian Energy Minister Sergei Shmatko.

"We need to do everything necessary to make sure that such a situation never happens again," he said in a statement.

Concerns are growing that the dispute could be repeated this January, when Ukraine holds presidential elections. Ukrainian Prime Minister Yulia Tymoshenko said the country had struggled to pay its latest monthly gas bill to Russia.

Russian Prime Minister Vladimir Putin also warned last week that Moscow would cut off deliveries should Ukraine siphon off, for its own use, gas crossing its territory en route to Europe.

Russia's Energy Ministry said in a separate statement that the 'early warning' mechanism would maintain a clear line of communication between Moscow and Brussels, as well as the means by which to react to unexpected supply disruptions.

'Not just a red phone'

"It's not just a red phone connecting Moscow and Brussels," Vladimir Chizhov, Russia's ambassador to the European Union, told a press conference on Friday (13 November) ahead of the signing.

"It's a network of commitments which, of course, includes prompt information of any disruptions to our energy links, be it through technical failures, or natural disasters, or somebody turning off the supply or somebody diverting the energy flow," Chizhov said.

"It is also aimed at securing the Russian gas market, making it more efficient and more attractive to potential investors," he added. "Early prevention helps to have efficiency," he insisted.

Piebalgs, the EU energy commissioner, told reporters at the signing ceremony in Moscow that he hoped there would be no repeat of last year's gas supply disruptions. But he ruled out extending a loan to Ukraine to help Kiev pay for Russian gas.

"We hope transit systems won't be closed and there will be no interruption to gas [supplies]," Piebalgs said. "I hope that [Ukraine] will pay for gas," he said. "The possibility of giving Ukraine a loan is ruled out."

Other issues to be discussed

On Wednesday (18 November), EU and Russia will also discuss a range of global and bilateral issues at a summit in Stockholm. The replacement for the partnership and co-operation agreement negotiated in 1994, climate change and the Iranian nuclear issue are on the agenda of the bilateral summit.

(EurActiv with Reuters.) 

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