Policy Sections
Mini Sections
EPIA Business Development Unit Intern – Paid Internship
Interim Public Affairs Manager
Network and CrossLingual Projects Director
Account Executive in Public Affairs - Financial Services Practice
Writer/Web Editor - Native English
Consultant (Scientist) to work on the NERC-funded project "VALOR"
Post an EU jobThe Kremlin yesterday (21 April) published Russia's proposal for new rules on international energy cooperation, following a dispute with Ukraine over transit in January which left millions of Europeans without heating in the heart of winter.
EU efforts to formalise energy relations with Russia in bilateral trade agreements have fallen short so far. Russia signed, but later refused to ratify, the 1991 Energy Charter Treaty, an international agreement designed to integrate the energy sectors of the former Soviet Union and Eastern Europe into the wider European market.
The need for a more coherent EU energy policy and formalised relations with Russia - in particular with state-controlled Gazprom - was given a renewed sense of urgency following apparently politically-motivated supply cuts by Gazprom to its former Soviet satellite states in January 2006, and again in an even worse crisis in January 2009.
Unfair treatment of European energy firms operating in Russia, such as BP, and growing concerns within the EU about energy supply security, have put further political pressure on EU leaders to come up with safeguards against potential abuses by Moscow (EurActiv 04/09/07).
Some EU experts saw inconsistency in the fact that the Union is insisting that Russia must open its internal energy transport market to European companies, while within the bloc, there is a practice of denying third-country companies such access.
The draft, published on the Kremlin's website yesterday (21 April), is described by President Dmitry Medvedev as a "basic document which defines issues of cooperation in the sphere of energy, including proposals on a transit agreement".
The proposal for a new international energy treaty follows a similar initiative to overhaul the global security architecture, unveiled on the eve of the US Presidential election last year (EurActiv 09/10/08).
Arkady Dvorkovich, Medvedev's top economic aide, said Moscow was proposing a document that would "essentially replace the Energy Charter," but was flexible on its legal format.
"We are offering a new fully-fledged legal base for future energy cooperation," Dvorkovich said in a briefing with Russian reporters, quoted by AFP, adding that the new document should also cover nuclear energy in addition to conventional energy.
"We are talking not only about gas or oil, but also about all energy products, including nuclear fuel, electricity, coal and the rest of the goods in which we trade, in which countries in the energy sphere trade," he said. He added that "despite the many discussions and even promises, the current international legislation did not cover nuclear energy".
Transit a focal point
The draft treaty refers heavily to the January gas dispute with Ukraine, apparently seeking to build on the crisis to promote the idea that a new legal basis is needed to govern international energy relations.
"The existing bilateral arrangements and multilateral, legally-binding norms governing international energy relations have failed to prevent and resolve conflict situations, which makes it necessary to efficiently improve the legal framework of the world trade in energy resources," reads the document, entitled 'Conceptual Approach to the New Legal Framework for Energy Cooperation (Goals and Principles)'.
Indeed, a substantial part of the four-page document is dedicated to transit. The blueprint seeks to introduce the principles of establishing transit tariffs and obliging all parties to ensure the proper fulfilment of transit requirements by their entities.
It introduces the principle of unacceptability of transit interruptions or reductions, promotes responsibility of the parties for losses incurred, and proposes establishing specific bodies to address emergency situations.
Energy sovereignty
Moscow is also pushing for a global system in which the sovereignty of energy-rich nations would be recognised as "unconditional". At the same time, Russia would be free to access international energy markets, and no restrictions should exist for investments in energy-chain links.
In a spirit familiar from recent speeches by Russian leaders (EurActiv 22/10/08), Moscow said it was seeking to promote mutual exchange of energy businesses' assets, and promote non-discriminatory access to Western technologies.
Significantly, the blueprint proposes the "promotion of infrastructure projects of great importance for global and regional energy security". It has become clear from recent statements (EurActiv 21/04/09) that Russia wants EU support for its own projects, such as the South Stream gas pipeline, seen by many as an alternative to Nabucco, a project designed to reduce Europe's dependence on Russian gas.
Nuclear energy added to the package?
Unlike the Energy Charter, the Russian proposal appears to include nuclear energy. Nevertheless, the term 'nuclear' does not appear in the text of the draft legal text, but only in the annex. A list of energy materials and products starts with radioactive material, such as uranium, and ends with fuel wood and charcoal.