For explanation of my proposal, go below to bold text on my August Tagesspiegel Op-Ed.
RAJA ME |
EU leaders will discuss the idea of creating a strategic EU gas reserve and decoupling electricity prices from gas prices, said the head of the European Commission, Ursula von der Leyen.
– When it comes to gas, we are dependent on imports – 90 percent. gas is imported. The economies in the world are growing, so is the demand. But the supply is not correspondingly greater. We are very grateful that Norway is increasing production, but it seems that this is not the case in Russia, noted the head of the European Commission, visiting Estonia. In her opinion, the solution to the problem are investments in renewable energy sources, which should make the Community independent of imports and stabilize prices.
– In the short term, we will talk at the European Council, not only this evening (Tuesday), but in two weeks’ time at the formal Council of Europe, how to deal with storage, the strategic reserve and we will look at the overall price structure on the electricity market. Electricity prices are high due to high gas prices and we have to consider the possibility of (them) decoupling because we have much cheaper energy from renewable sources, said von der Leyen
On Tuesday evening, an informal meeting of European leaders will take place in Slovenia ahead of the EU-Western Balkans summit scheduled for Wednesday.
According to unofficial diplomatic sources in Brussels, Poland wants the European Commission to conduct investigations into the manipulation of the natural gas market by the Russian company Gazprom, which are causing the increase in gas prices in the EU. This issue is expected to appear at the EU summit on October 21-22.
Back in April, American energy market analyst Thomas O’Donnell predicted that Russia would use gas supplies to build strategic domination. The EU’s response should be to create a kind of gas ‘central bank’ in Ukrainian warehouses and use this country as a buffer, he proposed.
Ukraine is a key element of the strategic gas reserve
– Shortly after the beginning of the Maidan revolution and the Russian aggression, Ukraine, with the support of the EU, quickly made technical modifications to the export pipelines to Slovakia, Poland, Hungary and Romania in such a way as to enable a reverse. This quickly freed Kiev from having no alternative to buying Russian gas, said the expert.
– Moreover, the Kremlin cannot so easily promote favorable oligarchs – he envisaged adding that the implementation of this idea was only a matter of legislation.
– The EU could designate warehouses in Ukraine, Germany and France as the so-called strategic reserves that must always hold a certain minimum amount of gas. In the event of any aggression by Russia against Ukraine or other countries, these warehouses would be launched by a special EU-US committee or within the OECD, and Russian pipelines would be cut, the analyst suggested.
– Gas belonging to Gazprom, which stores huge amounts of gas in Germany and other EU countries, should in this case be nationalized – the expert believes.
Responding to the objection that such ideas sounded a bit fantastic, he explained that this is almost exactly how the international oil security system has operated for 50 years: in the event of a crisis, 90-day strategic oil reserves are deployed in each member state of the International Energy Agency.
The Global Barrel 