Russia’s ambassador to the EU, Vladimir Chizhov, said the European Union would be in a better position to correct rising gas prices if it were more friendly towards its largest gas-exporting neighbor.
Photo: Evgenia Novozhenina / REUTERS / SCANPIX
Valdis Bērziņš, “Latvijas Avīze”, JSC “Latvijas Mediji”
A high-ranking Russian official has said that better diplomatic treatment of Russia by the European Union would address the energy shortages that EU countries are currently experiencing, suggesting that Russia, which already supplies about a third of EU gas imports, is looking forward to further European benefits.
Kremlin urges EU to be ‘friendlier’
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Russia’s ambassador to the EU, Vladimir Chizhov, said the European Union, which saw gas prices rise almost tenfold in October since the beginning of the year, would be in a better position to correct the price increase if it were more friendly to its largest gas exporter’s neighbor. “The point is only in phraseology,” Chizhov said in an interview with The Financial Times.
“Change the term ‘opponent’ to ‘partner’ and it will be easier to sort things out,” said a veteran of Russian diplomacy.
“Once the EU has the political will to do so, they will know where to find us,” he said, acknowledging that the huge jump in gas prices was caused by the Kremlin’s political situation.
However, Chizhov tried to argue that Russia would be interested in reducing gas supplies to the EU and raising prices, according to several Kremlin critics, in order to achieve certification of the Nord Stream 2 pipeline.
“Such a position would not promote stability,” he said, “and people would return from gas to coal, as some are already doing.”
In an interview with France Télécom, Chizhov said the attitude of the Russian state energy company Gazprom could become “more flexible” in applying gas exports to Europe.
The EU is feverishly looking for a way out
The approach of winter and the lack of gas in Europe have led EU Member States to feverishly seek a way out of the situation. Spain, France, the Czech Republic, Romania and Greece have called for an investigation into the reasons for high gas prices and low supply, proposing common guidelines for gas stocks and reforming the electricity market.
“Gas and electricity prices have risen dramatically in recent months, placing an increasing burden on households and businesses, with a particularly severe impact on the most vulnerable and small and medium-sized enterprises,” the joint statement said.
“We will need Russian gas and probably more than the previous contracts. That is why Spain is proposing joint gas purchases with France, the Czech Republic, Romania and Greece, but this plan has not yet been drawn up in detail, ”notes the El Pais newspaper.
Some EU Member States are opposed to joint gas purchases from Russia. The European Commission intends to publish a plan on how national governments can limit the impact of rising gas prices.
It contains a set of measures that EU Member States can use to address the immediate effects of real price increases and strengthen their resilience to new price shocks. Short-term government measures include emergency income support for households, state support for enterprises and targeted tax cuts.
The EC will also support investment in renewable energy and energy efficiency and consider measures for the storage and purchase of gas stocks.
The plan recommends abolishing value added tax on electricity bills, introducing benefits for the poorest families and regulating long-term tariffs for vulnerable people. France, Finland, the Czech Republic and several other countries have proposed equating nuclear energy with investing in green energy.
Gazprom is considering a more “flexible” approach
Russian President Vladimir Putin has said a “possible increase” in gas supplies to Europe is being considered.
He called for stabilization in the natural gas market at a time when critics in Europe are blaming Moscow for soaring gas prices. Speaking at the Moscow Energy Forum yesterday, Putin said that “it is very important to propose a long-term mechanism to stabilize the energy market in this difficult situation.”
Rising gas prices in Europe have led to accusations that Moscow is cutting supplies to put pressure on the West and speed up the start of the Nord Stream 2 pipeline. However, Putin blamed the systemic problems in the European energy market for this situation and said that “some people are trying to blame others”.
Putin said Russia was ready to increase gas exports and supplies would be increased “to the extent required by our partners.”
Critics of the Kremlin note that Nord Stream 2 increases Europe’s dependence on Russian gas imports and deprives Ukraine of gas transit revenues.
Britain’s finance minister, Theodor Egnue, said the sharp rise in energy prices was not due to supply problems, but was a “geopolitical move” by Russia to put pressure on Europe, The Telegraph said.
According to energy experts, the current European gas crisis dramatically confirms the huge geopolitical price caused by over-dependence on Russian gas.
“This situation gives Russia the opportunity to dictate rules in the European market,” said Jason Bordoff, director of the Center for Global Energy Policy at Columbia University. Some experts advise Russia not to overdo the pressure of gas prices on Europe, as this could encourage faster development of alternative and environmentally friendly energy sources.
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