ASSESSMENTS

The EU Stalls Natural Gas Deals with Russia

Mar 11, 2014 | 22:15 GMT

The EU Stalls Natural Gas Deals with Russia
Welded sections of the OPAL pipeline are laid near Lubmin, Germany, in 2010.

(Sean Gallup/Getty Images)

Summary

The European Union is responding to Russia's foray into Ukraine by using one of the primary linkages between Europe and Russia: natural gas. On March 10, the EU Commission said it would delay a decision determining whether Russian energy major Gazprom could supply more natural gas to Europe through the OPAL pipeline in Germany. Meanwhile, EU Energy Commissioner Gunther Oettinger announced that negotiations with Russia on the legal status of the South Stream natural gas pipeline would also be delayed.

The competition over Ukraine is at the heart of the issue. Both pipelines enable Moscow to circumvent Ukraine as it delivers natural gas to its European consumers. By stalling the agreements, the European Union is showing its support for Kiev and signaling trepidation over forging stronger energy ties with Russia. But ultimately, these measures are largely symbolic; if an outright natural gas dispute erupted, the European Union would quickly come under pressure from its members to acquire Russia's natural gas, Ukraine notwithstanding.

Ostensibly made in response to Ukraine, the moves are largely symbolic....

Keep Reading

Register to read three free articles

Proceed to sign up

Register Now

Already have an account?

Sign In