EU draws the line for Gazprom
European Commission President Jose Manuel Barroso announced in Brussels on September 19 long-awaited legislation aimed at liberalizing the EU's internal energy market by breaking up, or "unbundling," utilities that control both the production and distribution of energy, RFE/RL reported. The moves met with stiff opposition from Germany, France, and some other member states, and the German government described the measures as "unacceptable," Deutsche Welle reported. The legislation also would bar foreign companies, such as Gazprom or Algeria's Sonatrach, from controlling energy networks unless their home states agree with the EU to open up their domestic markets in "reciprocal" fashion (see "RFE/RL Newsline," April 2, August 30, and September 5 and 18, 2007). Barroso said that "individuals and countries should not be able to acquire control over a [EU energy] transmission network unless there is an agreement between the community and the company's country of origin. This is simply to ensure that the unbundling rules will be respected. Once again, the aim is not to prevent these companies from playing a greater role on European Union markets.... It is to make sure that all follow the same rules.... We must not be naive." The EU has long sought to persuade Moscow to ratify the EU's Energy Charter Treaty, which Russia signed in 1994 but never ratified, and whose Transit Protocol would require Russia to open up access to its pipelines. Since at least 2006, Russia has classified much of its energy sector as "strategic" and off limits to much foreign investment. It has also sought to cancel or renegotiate existing contracts in which foreign firms have a large or majority stake. On September 20, the "International Herald Tribune" wrote that "after years of Russia's using energy as a political weapon, the EU sought to turn the tables...with a proposal to prevent...Gazprom from taking over power networks in Europe." The BBC noted on September 19 that Gazprom has allocated more money to buy assets in Europe than it has to develop the new Russian fields it needs to meet its commitments. Some experts pointed out that Gazprom has used joint ventures in which it is not a majority shareholder and could do so again. Poland's Jacek Saryusz-Wolski, who heads the European Parliament's Foreign Affairs Committee, called on the EU to be as firm with Gazprom as it is with Microsoft in enforcing anti-monopoly rules. PM // Copyright (c) 2005. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. RFE/RL
- Moldova might import natural gas from Ukraine
- Moldova gets 13 million euro from EU for the Transnistrian region
- No More Work Restrictions for Romanians in Italy and Island
- Moldova to resume gas talks with Gazprom after decision on EU Energy Package III
- Global Prosperity Index: U.S. behind China in economic rankings
- European Crisis: Precise Solutions in an Imprecise Reality
- Moldova to start talks on new gas supply contract
- Greece has formally requested a new loan from the EU and the IMF
- Greece: Athens faces moment of truth, EU's Barroso says
- Chisinau discusses reorganization of Moldovagaz with Gazprom
- Asia, US helps Mercedes Benz sales hit record high in 2006
- Cricova: The Largest Underground Wine Cellar in the World
- What does Remortgage mean?
- Dutch bear profit rises 26 percent
- Foreign direct investment in India doubles during 2006
- Greece: Socialist government's budget deficit of 12.5% caused debt crisis
- Toyota in talks to build new China plant
- Walt Disney profit up 39 percent
- DaimlerChrysler is not planning to manufacture trucks in India