Russian gas dispute shows need for common EU energy policy: EC

Brussels (Platts)--3Jan2006

The price dispute between Russia and Ukraine which has affected gas
supplies to the European Union illustrates the need for a strengthened EU
approach to energy policy, a European Commission spokesman said Tuesday. 
     Last October EU leaders agreed at an informal summit in Hampton Court
near London that the EC should come up with possible measures toward a common
EU energy policy for debate. "[The Russian-Ukrainian gas dispute] is one 
illustration of the appropriateness and of the timeliness of that mandate and 
the EC will of course intensify its work in this respect," said the EC 
spokesman. The EC hopes to publish an energy policy green paper with its 
thoughts on this in time to be debated by EU leaders at the European Council 
in March. 
     The Hampton Court mandate "clearly attests to the political will, both of
the member states and the EC, to increase our common possibilities of response
to this and other situations," said the spokesman. "This is clearly not a
one-off situation." 
     The EC's more immediate response, however, has been to convene a meeting 
Wednesday in Brussels of the Gas Coordination Group. This is one of the 
measures in the EU's law on securing gas supplies law adopted last year and 
which member states have to transpose into national law by May 19, 2006.  The 
group is to bring together the EC, member states, EU gas companies and the 
Austrian presidency of the EU to look at the short and long term implications 
of any cut in supplies and what, if anything, needs to be done. 
     The meeting will also be an opportunity to take stock of the state of 
transposition of the law in each member state, and to exchange experiences, 
said the EC spokesman. The EC stressed that the Russian-Ukrainian dispute was 
between a gas supplier and its transit operator from two countries which were 
not EU members, and that it was up to the two parties to sort it out. 
     Last week the EC said it was confident that the EU could cope with a
short term, limited cut in gas supplies from Russia because of its gas storage
facilities and access to other supplies.

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