http://www.economist.com/news/europe/21639577-european-union-heads-battle-national-governments-energy-only-connect
The EU has made it clear once again that the free flow of energy between member nations is a top priority, but the energy commissioner, Maros Sefcovic, has run into several hurdles from national governments and Russia. The flow of gas has currently been reduced in Eastern Europe due to the continuing conflict between Russia and Ukraine. Flow from Ukraine to Slovakia has been reversed to meet demand in Ukraine. Several smaller EU-members have also been hurt as supply lessens across Europe because of their limited access to pipelines. Last year Russia proposed a pipeline (South Stream), but it was ruled illegal because the same Russian company would both run the pipeline and own the gas going through it. Now the EU is scrambling to build legal ones with connecting electricity cables in the same area, but it is running into resistance because of internal corruption (including Russian influence that often halts infrastructure) and obstinate behavior from national governments. Many provide energy through state-owned companies and do not want possibly cheaper energy coming in from their neighbors. In the mean time the commission is also battling Gazprom (Russian gas company) over abusing single market rules in vulnerable states.
I believe that the situation will work out in favor of the EU as far as Russia goes because of their currently weakened state from falling gas prices. Now is the time to prosecute the companies that have obviously been manipulating the market in Eastern Europe. As far as making EU members play nice on inter-connectors, those who are currently obstinate will stay obstinate because they know its risky for nationalized industries. There would have to be a EU set price index for the inter-connectors to work like they should.
2 comments:
The export of natural gas and petroleum to Europe was one of the few pieces of leverage Russia had to limit EU sanctions. If Russia continues to slow its export of energy to the EU and Ukraine, the EU will find other exporters. Russia needs to stop its aggression in Ukraine soon before it eliminates one of its last advantages.
I think that's a lesson Putin needs to learn. Someone should check him soon.
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