EU moves to reduce dependency on Russia

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BRUSSELS: European Union leaders agreed on Friday to step up moves to cut energy dependency, notably on Russia, after events in Ukraine.

EU Council president Herman Van Rompuy said the bloc’s 28 leaders had agreed at a two-day summit to outline an energy security framework at their next top-level meeting in June.

“Reducing our energy dependency, especially in relation to Russia, was a key topic” at the summit talks, Van Rompuy said at a news conference.

“If we don’t take action now, by 2035 we will be dependent for 80 per cent of oil and gas,” he said. Among measures to be taken will be the diversification of energy sources by promoting indigenous sources including renewables and nuclear energy and improving interconnections both across the bloc and with third countries.

British Prime Minister David Cameron, a key promoter of the measures, welcomed the move as a step to the EU making itself more “resilient and independent”.

“We should be looking at long-term energy diversification, security and resilience right across Europe and that is something which we will enthusiastically pursue,” said Cameron, whose country imports virtually no Russian gas.

But in all, over a quarter of the gas used by the European Union comes from Russia, accounting for 53pc of Russia’s annual gas exports, with $24 billion (17bn euros) a year.

“Russia needs Europe more than EU needs Russia,” Cameron said.

But for a number of eastern EU countries — Finland, Poland, Hungary, Slovakia, Bulgaria and the Baltic states — Russia’s state-controlled gas company Gazprom is virtually the sole provider.

Many of these countries fear a tit-for-tat escalation of sanctions between Russia and the EU over the crisis in Crimea could lead to their gas supplies being affected.

Cameron said EU members needed to do more to develop their own reserves as well as their ability to use gas from overseas producers, including the United States.

“We need to make sure that shale gas can be imported by the EU and the inclusion of it in TTIP would make a difference,” Cameron said, referring to the Transatlantic Trade and Investment Partnership, a planned trade deal between the EU and the United States.

French President Francois Hollande said that it was “very important” that Europe guarantee its gas security and promised “a complete plan by June” outlining ways in which the EU can become less dependent on Russia. The EU currently produces about a third of the natural gas it consumes, but this is forecast to drop as North Sea fields become depleted.

With North African supplies having been hit by outages due to violence and Middle East suppliers turning towards lucrative Asian markets, Europe actually became more dependent on Russian gas last year.

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