- Title: FINLAND: EU vows united front to press Russian President Vladimir Putin on energy
- Date: 21st October 2006
- Summary: (BN14) LAHTI, FINLAND (OCTOBER 20, 2006) (REUTERS) GERMAN CHANCELLOR ANGELA MERKEL ARRIVING FOR NEWS CONFERENCE (SOUNDBITE) (German) GERMAN CHANCELLOR ANGELA MERKEL SAYING: "Of course the best option would be for Russia to ratify the energy charter however the next possibility for us, as the EU, to enter the area of the principles (addressed in the energy charter) is new
- Embargoed: 5th November 2006 12:00
- Keywords:
- Location: Finland
- Country: Finland
- Topics: International Relations
- Reuters ID: LVA3WI96TT364EHRG5882F5LBRDO
- Story Text: European leaders agreed on Friday (October 20) to deliver President Vladimir Putin a blunt message that Russia must give European firms a fair chance to exploit its huge energy resources or risk an investor exodus.
Putin turned up as guest at a potentially fraught European Union (EU) dinner in Finland where the bloc's 25 leaders will also raise the killing of journalist Anna Politkovskaya and the Kremlin's supposedly heavy-handed treatment of former Soviet Georgia.
The Europeans are dismayed by Russian moves questioning contracts signed in the 1990s by firms including Royal Dutch Shell and Total, and by a decision to shut foreign capital out of development of the Shtokman gas field.
"We had unity today. On energy source with Russia we aim to build a close and binding partnership based on mutual balanced long term benefits. its in the Union's interest to persuade Russia to commit more strongly to the principles which have already been defined in the energy charter treaty and G8 declaration. There is a complete understanding between the member states of the principles to be applied. Covering especially market based rules, market opening, non discriminatory access to transit networks and mutuality in two-way investments," said Finnish Prime Minister Matti Vanhanen shortly before Putin's arrival.
British Prime Minister Tony Blair said the 25-member bloc, which takes a quarter of its gas from Russia, would tell Putin ties had to be based on "clear rules and clear principles".
Vanhanen also said investments should be linked to guarantees of energy security.
EU countries were anxious to mask their differences on whether the bloc should treat Moscow more as a strategic partner and supplier of a quarter of its gas, or as a bully in its ex-Soviet backyard and using energy as a political weapon.
Former Soviet satellites in the Baltic states and central Europe want a tougher EU line, while others such as France and Germany have typically stressed the common ground with Moscow.
EU Foreign Policy Chief Javier Solana said he had received guarantees that Russia and the Ukraine would settle their differences and that there would not be a repeat of last year's crisis in which gas supplies going through the Ukraine were blocked, hence depriving European countries of crucial supplies in harsh winter months.
"This coming week, an agreement will be signed between Ukraine and Russia and I was there discussing with the leaders of Ukraine yesterday and they will have the guarantee that the supply of gas will be for all of the countries of Europe that have links to the pipeline which as I said is the most important pipeline which supplies gas to Europe," Solana said.
EU countries are above all irked by Russia's refusal to ratify an energy charter which would open its pipelines to third parties and by its hostility towards foreign investors.
But with Putin buoyed by high energy prices and popularity at home, observers doubt whether the EU has the leverage to influence Kremlin policy on energy or elsewhere.
The EU this week issued unusually stern criticism of Moscow over its blockade of Georgia and harassment of Georgians in Russia.
But Russia appears unfazed by such rebukes, insisting Georgian President Mikhail Saakashvili is exacerbating tensions with inflammatory rhetoric and a military build-up around Russian-backed breakaway regions of Georgia.
Asked if the EU would raise its concerns over Russia's human rights record European Commission president Jose Manuel Barroso insisted Russia was a valuable partner.
"It is in the interests of our citizens to have constructive relation with Russia we also include very open very frank dialogue including on most sensitive issues for instance human rights and I am sure that this evening we are going to express our concerns on all the issues of that kind that we have that we know are a matter of concern for our European citizens," Barroso said.
German Chancellor Angela Merkel, whose country is the biggest customer for Russian gas, said the EU's strategic ties with Moscow were strong but demanded a fair trade-off on energy.
She said the EU would offer security in contracts but expect Russia to provide legal security in contracts and access to Russia's energy market
Merkel said she had not abandoned efforts to get Moscow to ratify an energy charter that would open Russian pipelines to others, but she indicated the EU would shift focus to putting the principles of that treaty into a partnership agreement it plans to start negotiating with Russia next month.
"Of course the best option would be for Russia to ratify the energy charter however the next possibility for us, as the EU, to enter the area of the principles (addressed in the energy charter) is new negotiations over the partnership and cooperation agreement. Here both the EU and Russia are on a level playing field - with the ratification of the energy charter only Russia is a player. Here we are going to put special pressure to ensure that Russia recognise the principles of the energy charter, but that does not mean I have given up the other goal (of ratifying)," Merkel said.
Several dozen protesters, some waving Georgian or rebel Chechen flags demonstrated peacefully against Putin about 100 metres (yards) from the summit centre, within sight of his limousine. Reporters were kept at a distance by Finnish security guards. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2016. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None