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EU energy chief says Russian gas shortages unlikely this winter



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EU Energy Commissioner Andris Piebalgs - Photo European Commission EU Energy Commissioner Andris Piebalgs - Photo European Commission

EU Energy Commissioner Andris Piebalgs said Monday that cuts in Russian gas supplies were unlikely during the coming winter months, but pressed for details on deliveries by the state monopoly Gazprom.

"There is an agreeement between Russia and Ukraine on the next year on gas supplies, including on prices," Piebalgs told a press conference in Moscow.

Enough gas was currently being stored in Ukraine to ensure supplies, "and I don't see any grounds why we should be worried" about shortages further downstream in the European Union, the energy commissioner added.

In January, a gas dispute between Russia and Ukraine led to export cuts and saw sharp pressure drops in European pipelines that carry 80 percent of Russian exports to the EU.

"I think this issue is completely resolved," Piebalgs said Monday.

Asked about the effects of an ongoing price dispute between Russia and Belarus, through which the remaining 20 percent of Russian gas exports pass, the commissioner said: "At the stage it seems that the negociations with Belarus are under control, but we can be sure only when they will be concluded.

"It doesn't mean necessarily that the supply is in danger."

The European Union depends on Russia for around a quarter of its natural gas imports, and that proportion is rapidly increasing.

Russia's budget, meanwhile, depends on revenues from European energy sales.

The Russian state gas monopoly Gazprom is moving aggressively to gain greater access to Europe's downstream energy retail market and has complained of unfair treatment from wary European regulators.

European officials say Russia must provide a better climate for foreign investors in its energy sector and liberalise its energy infrastructure.

Earlier on Monday, Piebalgs had called for mutual trust in energy relations with Russia at the start of an EU-Russia energy conference.

Russia and the European Union should work to "reinforce mutual trust in the energy sector," Piebalgs said.

"There is some work to be done on building up mutual confidence."

The EU commissioner said later that detailed figures were needed on gas supplies from Gazprom to help the EU define its energy strategies.

"What we are concerned with is the figures, if we know exactly how much gas comes from Gazprom," it would be clear whether investment needed to increase in other areas such as liquid natural gas (LNG) deliveries or the planned Nabucco pipeline that would go through Turkey, Bulgaria, Romania, Hungary and Austria and is due to be built in 2008.

"It is important that we have these figures and that we trust the figures," Piebalgs said.

18 December 2006, 07:06 CET
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