A Russian Alternative to the European Energy Charter

Excerpt from Russian Petroleum Investor by Inna Gaiduk and Elena Kirillova


The January gas dispute between Russia and Ukraine has shown that, without an increase in responsibility of transit countries, it is impossible to provide guaranteed deliveries of energy resources. It resulted in damage to the interests of both Russia and several consuming countries. In spite of the fact that Ukraine was the initiator of the gas dispute, Europe has taken an ambiguous position in deciding not to condemn the Ukrainian actions.

In addition, Brussels and Kiev have recently signed a declaration for the modernization of the Ukrainian gas transport system (GTS), removing Russia from the process. Such European behavior obliges Moscow to reflect once again on a diversification of energy deliveries. The visit by deputy prime minister Igor Sechin to China is also a serious signal to Brussels. Russian Prime Minister Vladimir Putin’s decision not to participate in an April conference in Sofia is an additional demonstration of Moscow discontent.Observers had considered the White Stream gas pipeline project proposed several years ago by Ukrainian Prime Minister Yulia Timoshenko at best an abstract possibility. The plan had called for laying a pipeline on the Black Sea floor to Europe. The idea was to move gas from Azerbaijan and Turkmenistan to Ukraine and then on to Europe. Now, Brussels is beginning to consider the pipeline idea as likely. In addition, under the guise of reconstructing the Ukrainian GTS, Western countries are again attempting to find ways of delivering gas to Europe bypassing Russia by utilizing White Stream.

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Shelf Crisis

Excerpt from Russian Petroleum Investor by

There should be a postponement of shelf projects until economic times are better, according to Russian deputy prime minister Igor Sechin. “In the near future, the shelf will not have major promise because it requres serious capital investments and will not pay off quickly given the current situation in the market.” he said. In today’s conditions of global financial crisis, nobody can any longer afford such volume of investments -- not the government, state companies or private traders.

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