Monday

22nd Jan 2018

Gazprom chief warns EU on higher gas prices

  • Russian gas giant says it will stop supplying Europe through Ukraine in 2019 and start routing its gas through Turkey. (Photo: Mitya Aleshkovsky)

Gazprom chief Alexi Miller warned on Monday (13 April) that the EU'S planned energy union will result in higher prices.

Miller, who was speaking at a conference in Berlin, also said Russia will stop supplying gas to Europe through Ukraine in 2019 and will divert the flow to the planned Turkish Stream pipeline.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

  • The Energy union plan is designed to reduce EU's dependency to Russian gas. (Photo: EUobserver)

"If the European Commission will insist on equal prices, then of course, as you understand, a base price is not the lowest price. It will be the highest price," said Miller.

On 19 March, EU leaders endorsed the energy union plan presented by the European commission.

The plan involves infrastructure projects to link European energy networks, a transition to renewable energies and more transparency in supply contracts.

These measures are aimed at reducing Europe’s dependency on Russian gas and weakening Gazprom’s monopoly in some EU countries but they do not introduce a single price in the EU gas market.

The EU imports about 30 percent of its gas from Russia, with 40 percent of it flowing through Ukraine.

Miller said that Gazprom will stop delivering gas through Ukraine at the end of the current transit contract in 2019 and instead use the pipeline it plans to run through Turkey and Greece into Europe with an annual capacity of 63 billion cubic meters.

He warned against efforts by the EU to prevent construction of the so-called Turkish Stream.

The pipeline project was announced last December by Russian president Vladimir Putin after the EU opposed a previous project to bypass Ukraine called South Stream.

"If someone thinks about blocking Turkish Stream... it is a very serious mistake," said Miller.

Turkish Stream was discussed by Putin and Greek prime minister Alexis Tsipras last week in Moscow.

"Greece is extremely interested in investment initiatives to build a Greek pipeline," said Tsipras after the meeting, adding that "Greece is in the position of being a European hub".

Earlier last week, Greece signed a declaration with Turkey, Hungary, Serbia, Macedonia supporting the Turkish Stream project.

But the EU, which is investigating whether Gazprom is abusing its dominant position, is not keen on seeing the Russian gas giant opening a new route.



Alexei Miller’s declarations in Berlin Monday are the latest sign that Russia, hit by US and EU sanctions and falling oil and gas prices, is trying to revive its influence on the energy market.

The Gazprom chief said that his company is ready to sell gas on other markets, like China, if Europe doesn't meet Gazprom’s conditions.

"First, all these volumes may go to other markets. Second, and I want to direct your attention our competitive advantage, we can sustain a pause," said Miller, adding that Gazprom has the capacities to double its production.

Miller suggested that despite efforts to diversify its supplies, Europe will have to deal with Gazprom.

"Gazprom is quite certain that nothing can happen to prevent Gazprom and the European Union to continue being important and necessary partners in the gas market," he said

"Trust has been damaged, but we hope it will be restored."

News in Brief

  1. Abbas in Brussels to discuss Palestinian state recognition
  2. Exiled Catalan leader leaves Belgium for first time
  3. CSU politicians set to oppose concessions to SPD
  4. Greek mass protests against use of 'Macedonia' in name dispute
  5. Oxfam report reveals inequality as Davos elite gather
  6. Macron: France would probably have voted to quit EU
  7. Germany confirms attendance at air quality summit
  8. Nearly half of 'fixed' Dieselgate cars show problems

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic Solutions for Sustainable Cities: New Grants Awarded for Branding Projects
  2. Mission of China to the EUTrade Between China, Belt and Road Countries up 15%
  3. Nordic Council of MinistersOresund Inspires Other EU Border Regions to Work Together to Generate Growth
  4. Mission of China to the EUTrade Between China, Belt and Road Countries up 15%
  5. AJC Transatlantic InstituteAJC Calls on EU to Sanction Iran’s Revolutionary Guards, Expel Ambassadors
  6. Dialogue PlatformRoundtable on "Political Islam, Civil Islam and The West" 31 January
  7. ILGA EuropeFreedom of Movement and Same-Sex Couples in Romania – Case Update!
  8. EU2017EEEstonia Completes First EU Presidency, Introduced New Topics to the Agenda
  9. Bio-Based IndustriesLeading the Transition Towards a Post-Petroleum Society
  10. ACCAWelcomes the Start of the New Bulgarian Presidency
  11. Mission of China to the EUPremier Li and President Tusk Stress Importance of Ties at ASEM Summit
  12. EU2017EEVAT on Electronic Commerce: New Rules Adopted

Latest News

  1. How Oettinger's CO2 permit sale could fill Brexit blackhole
  2. New Polish foreign minister tries to charm EU commission
  3. Middle East, Messi and missing MEPs on the agenda This WEEK
  4. Instagram and Google Plus join EU anti-hate speech drive
  5. EU wants 'entrepreneurship' in education systems
  6. UK loses EU satellite centre to Spain
  7. Pay into EU budget for market access, Macron tells May
  8. Ethiopian regime to get EU migrants' names