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Posted on Sustainabilitank.info on May 3rd, 2014
by Pincas Jawetz (pj@sustainabilitank.info)

 

PLEASE VOTE NEVERTHELESS !
WE ALL KNOW THAT THE FOLLOWING IS TRUE BUT BY NOT VOTING AT ALL YOU DO NOT ACHIEVE A THING BEYOND ASSURING THAT DECISIONS WILL BE TAKEN WITHOUT ANY CONSIDERATION TO  WHAT YOU HAVE IN MIND. IF YOU VOTE YOU MIGHT OPEN THE DOOR FOR WHAT YOU NEED.

 

This is the eighth elections to the European Parliament – and perhaps the forst really important election as it will lead to the establishment of the FIRST PRESIDENT of the EU.
There are many subjects of first line importance that will have to be decided by the new Parliament but some of the most important topics are not mentioned in the election campaigns – this because they might be too controversial  for the constituencies.
We will deal here just with one such topic – the need for an European energy policy that is not based on imports of gas.The insecurity of Russian supplies ought to teach Brussels that best energy policy is one of efficiency in the use of energy and supplies that are local and from Renewable Energy sources. If this lesson is not forthcoming in days of constraints applied who is full enough to believe in promisses that such policies will be made posible in a calmer future – if this ever comes?
Just see:

Russian gas supplies ‘not guaranteed’, EU commissioner warns.

The EUobserver May 2, 2014.

By Valentina Pop

 

BRUSSELS – A first mediation attempt by the EU between Russia and Ukraine on their gas price dispute on Friday (2 May) in Warsaw ended with no results other than the willingness to meet again.

  • Guenther Oettinger at a press conference after meeting the Russian and Ukrainian energy ministers (Photo: European Commission)

“It is with concern that we see the security of supply for end consumers in EU and non-EU states like Ukraine is not guaranteed,” EU energy commissioner Guenther Oettinger told press after the meeting.

The energy ministers of Ukraine and Russia, for the first time at a table since the annexation of Crimea and the Russia-backed separatist movements in eastern Ukraine, decided to hold separate press points rather than join Oettinger in a common press conference.

Still, when asked about the atmosphere in the meeting, Oettinger responded that “we are all adults” and emphasised the willingness of both sides to meet again mid-May.

“The European Commission will stabilize Naftogaz [Ukraine’s state-owned gas company] and Ukraine and will be a fair mediator for justified and fair gas prices,” Oettinger said.

At the core of the current dispute is how much Ukraine owes and has to pay for current and future gas deliveries from Russia: 485 US dollars per cubic meter of gas as Gazprom demands or roughly half of it, the price Kiev used to pay before the political turmoil that started late last year.

For the Russian side, the price is “clear, set in the contract signed until 2019” and any negotiations are “odd”.

Russian energy minister Alexander Novak told press after the meeting that Ukraine has not paid for any gas it imported in the last quarter of 2013 and the first three months of this year.

“There is a 16 May deadline when an invoice will be issued to pay for the gas by 31 May and to prepay for the consumption in June. If by June these payments are not made, Gazprom will have the possibility to restrict supplies to Ukraine,” Novak said.

He added that European supplies should not be affected as they are paid for until September 2014. Any disruptions in gas flows to the EU during this time should only be blamed on Ukraine, if it “illegally” taps these supplies or diverts them to storage.

Novak also questioned plans by the EU to reverse the flow of gas and supply Ukraine with Russian gas via Slovakia.

“If such contracts are executed, we’ll look at them very attentively and reserve our right to address courts and institutions of arbitration,” he said.

As for Ukraine, its energy minister Yuriy Prodan said the doubling of the gas price by Russia was “discriminatory” and “abusive” and that Kiev will take the matter to the international court of arbitration in Stockholm.

“It is possible that in arbitration we can change the volume of our debt to Gazprom, possibly no debt at all,” Prodan said.

He insisted that “Ukraine is a reliable partner, a transit country and it will fulfil all its obligations to its European partners.”

Ukraine is the main transit country for Russian gas supplies to EU countries, with previous price disputes having translated into gas cuts at the height of cold winters, leaving citizens in Bulgaria and Slovakia in the cold.

The situation has since improved, with increased reserves and the capacity to reverse the gas flow from less-dependent EU countries to the ones totally relying on Russian imports.

But with pro-Russian separatists shooting down two Ukrainian helicopters and with Russian President Vladimir Putin declaring a Geneva peace deal “no longer valid”, the chances of a solution to the gas dispute are low.

Related   —  Ukraine signs gas deal with Slovakia.

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Above is a fine description of the situation when all what Brussels is ready to talk about is the supply of new gas to old pipelines – “in reverse.”  we find this ridiculous because we did not hear of any of the parties running in the elections for the European Parliament saying in full light that Energy Policy is not a synonim for Gas Policy. Where is the call for investment in a long term solution that makes the gas unneeded? YES, THEY CAN – AND IT IS POSSIBLE TO DO IT!

In Austria we follow this topic closely by monitoring the position of the top people in the various parties – and even having picked up in private this topic with them – we found something that until today I used to call a Chicken’s attitude.

I said that “until today” and this because my eyes opened up when the papers today  wrote about –
“A PIPELINE SPLITS EUROPE” – it is the Austrian Oil Company OEMV that has a contract with the Russian GAZPROM to build the SOUTH STREAM PIPELINE to bring Russian Gas under the Black Sea to Bulgaria – and from there via Serbia, Hungary to a branch to Austria –  that will link to Central Europe,  and another branch to Slovenia – that will supply Italy and West Europe.

The First leg is to follow the route: Bergowaja near Sochi in Russia – all the length of the Black Sea to Varna in Bulgaria -Pleven in Bulgaria – Subotica on the Serbian/Hungarian border – to Baumgarten in Lower Austria.

The idea is to bypass the Ukraine, Moldova, and Romania. This is an answer the Russians think to apply to their relations with their pesky Ukrainian neighbors,  and Austria is playing the European partner in this scheme.  With OEMV having strong connections to the Austrian political system – voila – the reason the Austrian parties are not keen to do more then just speak with low voice about true ENERGY INDEPENDENCE. I find this very disturbing, and though I do not want to be the first to point fingers – suffice to say that this might undermine many good positions Austria has in its attempt to help solve in a logic way the Ukraine/Russian controversy – something that becomes impossible if the government ends up speaking for the National Oil Company.

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