Friday

20th Apr 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."

Merkel: Nord Stream 2 is 'political'

Germany has for the first time acknowledged concerns on the "political" and "strategic" aspects of Russia's Nord Stream 2 gas pipeline.

Magazine

Bioeconomy is a win-win strategy for Finland

"The big problem in the world today is a lack of resources and a lack of bio-diversity," says Finnish environment minister Kimmo Tiilikainen. His country plans to produce what the world needs the most.

Merkel: Nord Stream 2 is 'political'

Germany has for the first time acknowledged concerns on the "political" and "strategic" aspects of Russia's Nord Stream 2 gas pipeline.

News in Brief

  1. MEPs urge better protection for journalists
  2. Dieselgate: MEPs back greater role for EU in car approvals
  3. European parliament adopts new organic farming rules
  4. EU granted protection to half million people in 2017
  5. Report: Facebook to carve 1.5bn users out of EU privacy law
  6. Greek court ruling permits migrants to travel to mainland
  7. Commonwealth summit hopes for trade boost after Brexit
  8. Merkel and Macron meet to finetune eurozone reform plans

Stakeholders' Highlights

  1. ILGA EuropeParabéNs! Portugal Votes to Respect the Rights of Trans and Intersex People
  2. Mission of China to the EUJobs, Energy, Steel: Government Work Report Sets China's Targets
  3. Martens CentreJoin Us at NET@WORK2018 Featuring Debates on Migration, Foreign Policy, Populism & Disinformation
  4. European Jewish CongressKantor Center Annual Report on Antisemitism Worldwide - The Year the Mask Came Off
  5. UNICEFCalls for the Protection of Children in the Gaza Strip
  6. Mission of China to the EUForeign Minister Wang Yi Highlights Importance of China-EU Relations
  7. Nordic Council of MinistersImmigration and Integration in the Nordic Region - Getting the Facts Straight
  8. Macedonian Human Rights MovementMacedonians in Bulgaria Demand to End the Anti-Macedonian Name Negotiations
  9. Counter BalanceThe EIB Needs to Lead by Example on Tax Justice
  10. ILGA EuropeTrans People in Sweden to be Paid Compensation for Forced Sterilisation
  11. International Partnership for Human RightsThe Danger of Standing Up for Justice and Rights in Central Asia
  12. Mission of China to the EUChina and EU Must Work Together to Promote Global Steel Sector

Latest News

  1. Obscurity surrounds EU military fund's expert groups
  2. New EU party finance rules short circuit accountability
  3. Draghi to stay in secretive 'lobby' group
  4. Bulgaria offers lesson in tackling radical-right populists
  5. Getting secret EU trilogue documents: a case study
  6. Selmayr case scars Parliament and Commission
  7. Beyond macho: Turkish-EU ties
  8. 'Flobert' guns - Europe's latest terror loophole