EU wants same price for Russian gas for all its members: Oettinger

[TBF]

Food for thought (or, alternatively: "wtf is really going on over there ..." I have been looking for clues the past few weeks and I believe this is a very big one). Thoughts?


02/05/2014 - 13:33

EU Energy Commissioner Günther Oettinger said today (2 May) that the EU wants a uniform price for Russian gas for all its member states, adding Europe's common gas infrastructure should include Ukraine, Georgia and the western Balkans.

Oettinger was speaking after a meeting with Polish Prime Minister Donald Tusk, who promotes an idea of an EU energy union and joint purchase of Russian gas, ahead of talks with Russia and Ukraine on the security of Russian gas deliveries to Europe.

"We want a uniform gas price in the European common market," Oettinger said at the joint news conference with Tusk.

"The game of 'divide et impera' (divide and rule), or a game of this type proposed by Moscow cannot be and will not be accepted by EU member states," Oettinger said.

Tusk has recently appealed on his fellow EU leaders to create an energy union to secure the Union’s its gas supply [read more].

Currently, EU member states buy Russian gas on the basis of bilateral contracts with Moscow, and pay different prices. Common purchases would improve EU's negotiating power and cut the price.

"We have very big differences in terms of gas prices. The higher the share of Russian gas in purchases and the bigger monopoly Russia has in supplies, the higher the prices are," Oettinger said.

Much more here: http://www.euractiv.com/sections/energy/eu-wants-same-price-russian-gas-all-its-members-oettinger-301890

[dipsydoodle]

1. That ignores the aspect of volume in agreements.

Some of the supply agreements are based on price in relation to guaranteed volume purchases.

If the EU is sufficiently confident to enter into a bulk price volume agreement with Gazprom on behalf of all member states and then act as a reseller its perfectly free to do so. All gas paid for in advance of delivery course as Ukraine will be as of June 1st.

The inclusion of non member states is a different matter it doesn't follow that all member states would agree to that. Some may not regard Ukraine being to safe to supply with a toffee apple without advance payment.