Russia expects WTO membership to rule out Energy issues
17 Nov, 2011 14:56
Russia is already calling 'foul' over Europe's energy policy even before it joins the WTO.The EU's Third Energy Package as it's called separates energy companies from owning the supply system. PM Vladimir Putin describes the EU policy as "robbery".
The EU's Third Energy Package separates energy companies from owning the supply system, something what Russia's Gazprom is keen on. The EU is seeking to reduce its dependence on Russian gas by pushing Gazprom to ditch the link to oil prices from gas price calculations. Gazprom currently provides a quarter of Europe's gas and likes the stability of long term contracts. But the customers want more flexibility in gas prices at the cheapest price and search for alternatives. Gazprom's export chief, Alexander Medvedev said earlier that infrastructural expenses must be included when calculating prices and third energy package will not work here.“We are ready to give a standing ovation for the third energy package, but after our delivery points.”According to the Russian Prime Minister the Third Energy package appears as "robbery" on the back of EU's intentions to set their own rules and calculation methods.Vyacheslav Mischenko, the head for business development in CIS at Argus Media believes Gazprom being the core party on pricing decisions and export contract conditions will take its opportunity to contest the new rules since WTO membership which Russia expects to obtain in the middle of 2012, will not lead to trade offs on commodities as prices on them are determined by the markets.