Putin seeks EU energy demand security

Oct. 24, 2006
Russian President Vladimir Putin has hardened doubts that he'll ratify the Energy Charter on cooperation with Europe, which his country entered 10 years ago.

Doris Leblond
OGJ Correspondent

PARIS, Oct. 24 -- Russian President Vladimir Putin has hardened doubts that he'll ratify the Energy Charter on cooperation with Europe, which his country entered 10 years ago.

At a press conference after an informal dinner with the heads of the 25 European Union states in Lahti, Finland, Putin called for changes to parts of the charter involving access to gas and oil pipelines. He voiced concern about spot deliveries.

Putin said he wants Russia to become integral to the European gas market and advocated interdependence between his country and the EU as the only way to secure "demand security."

Russia raised alarms in Europe about supply security last winter when it curtailed deliveries to Ukraine, a transit country for pipeline supplies to Europe, in a price dispute.

"Russia is more dependent on the EU today than the other way around," Putin said.

On Russia's decision to develop Shtokman gas-condensate field in the Barents Sea alone, Putin said, "Gazprom had analyzed the proposals of foreign companies and decided it was not happy with them. But it does not mean Russia rejects cooperation with foreign partners (OGJ, Oct. 16, 2006, p. 20)." He said foreign companies could be involved as "coexecutives, to solve management issues as well as technical implementation."