Energy cooperation is economic priority: EU-Russia summit

Energy cooperation is economic priority: EU-Russia summit

London (Platts)--11May2005


The EU and Russia pledged to continue cooperation in the framework of the EU-
Russia Energy Dialogue during the 15th EU-Russia summit in Moscow Tuesday.
Russian president Vladimir Putin and his ministers including the minister for
energy and industry Viktor Khristenko and the EU delegation led by Luxembourg
prime minister, and current president of the EU Jean-Claude Juncker adopted a
package of roadmaps for the creation of four so-called "common spaces" for:
economics; freedom, security and justice; external security; and research and
education. 

Energy issues will be addressed within the framework of developing a common
economic space, the European Commission said late Tuesday, and will emphasize
addressing issues related to sustainability and continued reliability of
energy production, distribution, transportation and use. "These Road Maps set
out shared objectives for EU/Russia relations and determine the agenda for
co-operation between the EU and Russia for the medium-term," the European
Commission said.

EU-Russian joint energy priorities include energy efficiency, energy saving
and the use of renewable energy, according to the roadmap to develop an "EU-
Russia economic space." "It is important to promote and protect investments in
the energy sector, to facilitate the improvement of the investment climate,
promote regulatory convergence and a high standard of environmental
protection," the summit delegation agreed. The roadmap foresees convergence of
EU and Russian energy strategies, policies and regulatory measures and the
conclusion of negotiations on an agreement on trade in nuclear materials.

Cooperation on energy infrastructure projects of common interest is also
envisaged, as well as an evaluation of mechanisms to cover non-commercial risk
of energy projects. The roadmap also calls for agreement on cooperation in the
field of safety of transport of energy products, including by pipeline, rail
and sea. And cooperation in the field of nuclear energy - especially nuclear
safety and nuclear security - is also covered.

Scientific cooperation on energy issues between the EU and Russia will be
carried out within the framework of the "common space on research and
education." The EU and Russia will also cooperate on studies of the
feasibility of integrating their electricity markets, "including ensuring a
level playing field in terms of equivalent basic rules with respect to market
access, infrastructure and opening, as well as compatible environmental
protection and safety standards, for electricity production." And the EU
pledged to assist Russia in its gas market reforms in line with Russia's 2020
energy strategy. The EU and Russia now plan to launch a full-scale business
dialogue of energy companies in Russia and the EU, according to the summit
conclusions.

The EU-Russia summit delegation also agreed to intensify cooperation in the
field of the mining and metallurgical industry. Cooperation should focus on
exchange of information and support for preparation of joint programs in
areas related to the sustainability of industrial activities, industrial
restructuring and regulatory convergence, the roadmap says. There was also
scope to work together on analyzing what technical assistance programs are
needed for modernisation, technical renovation and training in the mining
sector, it added.

This story was originally published in Platts European Power Alert
http://www.europeanpoweralert.platts.com

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