In response to a recent proposal from Russian President Vladimir Putin, the European Union has agreed to hold talks with Russia and Ukraine on the security of the supply and transit of Russian natural gas.
“The European Union agrees on your proposal for consultations with
the Russian Federation and Ukraine with regard to security of gas supply
and transit. We believe that this approach allows for the most useful
process with the Russian Federation and other third parties, as these
matters concern Member States’ matters as well as the operation of the
European Union’s single market and touch upon a shared competence of the
European Union,” European Commission President Jose Manuel Barroso said
in a letter to Putin on Thursday.
“As you point out, the European Union and the Russian Federation are
Ukraine’s main trading partners. Let me reiterate that the need to
ensure the long-term political and economic stability of Ukraine is
therefore a key interest of the European Union and of the Russian
Federation as you stated in your letter. Therefore it is our common
interest to quickly engage in talks which will include Ukraine,” Barroso
said.
“As regards energy, relations must be based on reciprocity,
transparency, fairness, non-discrimination, openness to competition and
continued cooperation to ensure a level playing field for the safe and
secure supply and transit of energy. In this context, we recognize that
in the case of natural gas supply and transit the need for a structured
and comprehensive dialogue is particularly urgent. In our view, issues
relating to Ukraine’s gas debts and import prices should be considered
alongside their external financing needs with the IMF [International
Monetary Fund] and all other relevant international partners.
Cooperation between the European Union and the Russian Federation in the
energy field is based on common interests,” the European Commission
president said.
He said he saw two key elements to this issue.
“First, the contractual reliability of the Russian Federation as a supplier of gas is at stake in this matter,” he said.
“In your letter, you refer to the outstanding gas debt of ‘Naftogaz
Ukrainy’ as a contractual cause for Gazprom to shift to a pre-payment
regime, which could – in the absence of payment – eventually lead
Gazprom to partially or completely cease the supply of gas into Ukraine.
Such a development is cause of a serious concern as it carries the
danger of an interruption of service into the European Union and other
partner countries and affecting the storage of gas in Ukraine for
supplies in the coming winter. As far as the gas supplies to Europe are
concerned, I would like to recall that supply contracts are between
European companies and Gazprom. It therefore continues to be Gazprom’s
responsibility to ensure the deliveries of the required volumes as
agreed in the supply contracts. The European Union has repeatedly stated
that we expect commercial operators on all sides to continue respecting
their contractual obligations and commitments. Remaining a reliable
supplier would appear to be clearly in the interest of the Russian
Federation, in the light of international gas market developments,”
Barroso said.
“As supplies to the European Union and supplies to Ukraine are
closely related, we are willing to discuss with all parties concerned
how these contractual obligations are to be met on the basis of market
prices, rules and international law, as it is the case in the European
Union, and how to ensure that transit through Ukraine, storage of gas in
Ukraine and supply to Ukraine are done in a transparent and reliable
manner,” he said.
“Second, with a view to the supply of natural gas into Ukraine, the
long-term solution toward a functioning European gas market can only be
the satisfactory rearrangement of transit relations through Ukraine, and
a market reform of the energy system of Ukraine both on the basis of a
legally and economically sound and transparent regime. In the context of
the current crisis, we consider that solutions to both the Russian
claims regarding short term arrears and the long-term mechanisms,
including on the gas price and conditions of gas supplies, are to be
solved in dedicated negotiations and through available legal mechanisms.
We reiterate that changes to contractual arrangements due to political
circumstances run counter to the spirit of support and cooperation
enshrined in your letter,” Barroso said.
He urged Russia to refrain from measures that “would create doubts
about your willingness to be seen as a reliable supplier of gas to
Europe.”
“We stand ready to host trilateral consultations with the Russian
Federation and, subject to the agreement of the Ukrainian government,
with Ukraine as we have proposed already in the past. The proposed
consultations should help to avoid an extreme scenario and safeguard
security of supply and transit while at the same time creating the
necessary conditions for a structured cooperation including notably the
modernization of Ukraine’s gas transit system,” he said.
“In this respect, we are deeply concerned by the unilateral decision
taken by the Russian Federation not to apply the 2010 Kharkov
agreement,” Barroso said.
“The Commissioner for Energy, Mr. Gunter Oettinger, stands ready to
address these issues with his Russian and Ukrainian counterparts
immediately, in close contact with the Member States, and will therefore
contact his counterparts to organize a first meeting,” Barroso said.
“I am convinced that, by discussing constructively common solutions
and actions, we can find the solution to the current crisis,” he said.
