Ukraine Crisis Dominates EU Energy Ministers’ Meeting in Athens

Europe is considering increasing the size of security stockpiles of natural gas that member-states are obliged to have in storage in between 50 and 60 days, instead of the 30 days envisaged by current directives, in case of a possible supply crisis due to developments in Ukraine, European Energy Commissioner Gunther Oettinger said in Athens on Friday. The Commissioner was speaking at a press conference that wrapped up an informal EU energy ministers’ council held in Athens, Greece. In a joint press conference with Greece ‘s Environment, Energy and Climate Change Minister Yiannis Maniatis, Oettinger stressed that Russia must continue to meet its contractual obligations to the EU and the countries of the Western Balkans, the Ukraine and Moldova, refraining from using natural gas supply as a “weapon.” Commenting on a letter sent to EU leaders on Thursday by Russian President Vladimir Putin, in which he said that Ukraine must pay in advance for any natural gas it imports from Russia, the Commissioner said that negotiations will be held over the next 15 days so that security of supply remains guaranteed. Oettinger also noted that the Russian side now only demanded pre-payment of imports, while in previous communications had also called for a settlement of Ukraine’s debts and the activation of the ‘take or pay’ clause. He also said that a uniform price for natural gas in the EU should arise from the operation of the market and not through a political decision. Maniatis noted that events in Ukraine and the short-term and long-term measures for coping with an EU supply crisis had been among the issues discussed at the council meeting. These had included increasing security stockpiles (to be examined with respect to cost), emergency plans, installing reverse flow mechanisms in interstate pipelines, measures to reduce demand, as well as turning to internal energy sources and diversifying supply routes and sources. Oettinger stressed the last point, pointing out that if there were more than one provider, then no one could be blackmailed. Energy security will also be discussed at the ministers’ council in June, at which point the EU will make an announcement. Other issues covered at the Athens meeting included energy infrastructure, energy efficiency and conservation and climate change targets until 2030. Replying to questions about the privatization of the Hellenic Gas Transmission System Operator (DESFA), Maniatis said that EU approval was still pending, while Oettinger clarified that the process will be completed within 2014. (source: ana-mpa)

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