Business | Oil & Gas
EU to sue Russia, Ukraine if energy crisis is not solved
Top European Union (EU) officials warned Russia's and Ukraine's state-run gas companies yesterday that they would advise European energy companies to take legal action against them unless they move quickly to restore gas supplies.
- AP
- Published: 23:33 January 14, 2009
Strasbourg: Top European Union (EU) officials warned Russia's and Ukraine's state-run gas companies yesterday that they would advise European energy companies to take legal action against them unless they move quickly to restore gas supplies.
European Commission President Jose Manuel Barroso issued a terse and direct message to Moscow's Gazprom and Kiev's Naftogaz to stop holding European consumers hostage to their contract dispute over natural gas prices.
"If the agreement is not honoured, it means that Russia and Ukraine can no longer be considered reliable partners for the EU in matters of energy supply," Barroso told the European Parliament.
He said if a solution to the energy crisis that has cut off all gas supplies to Europe for a week was not implemented "as a matter of urgency," he would advise European energy companies to sue Gazprom and Naftogaz.
"The current situation is in short most unacceptable and incredible," Barroso added. "The fact is that Gazprom and Naftogaz are being unable to fulfil their obligations toward European consumers."
The tough language came a day after EU efforts to end the energy crisis faltered when a deal for having EU monitors check gas flows through Ukraine failed to restore supplies. Russia and Ukraine have blamed one another for the failure of that gas to reach Europe.
Russia supplies about one-quarter of the EU's natural gas, 80 per cent of it shipped through Ukraine's vast pipeline network.
Amid a pricing dispute with Ukraine, Russia cut off gas supplies to Europe on January 7 just as the continent was gripped by freezing temperatures.
Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, urged the 27-nation bloc to set up a 120-day "mandatory" strategic reserve of oil and natural gas.
Topolanek proposed that the bloc make its "highest priority" plans to support the construction of the Nabucco natural gas pipeline, which would carry Caspian gas through Turkey to Europe, bypassing both Russia and Ukraine.
The Czech leader also called for diversification of energy sources, including developing more nuclear power.
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