Energy row could pose threat to EU oil supplies

An escalating wrangle over oil duties between Russia and Belarus has put a fresh question mark over energy supplies to the EU.

The closure on Monday of the Druzhba pipeline meant no Russian oil was being pumped along it to central Europe, including Germany, Poland and Ukraine.

Russia accused Belarus, the former Soviet satellite state, of illegally siphoning oil from the pipeline, one of Europe’s biggest.

Moscow abruptly halted millions of barrels of oil that was destined for German and Polish consumers.

The dispute is the culmination of a row between Moscow and its former client state over the price Minsk pays for its energy supplies from Russia.

The wrangle has once again raised fresh fears that Europe is over-reliant on Russian energy.

The EU, which has calculated it will depend on Russia for 70 per cent of its energy by 2030, is keen to bolster its ties with all its energy producing partners to avoid becoming too dependent on any one source.

Germany, which has put energy security at the top of the agenda of this year’s EU spring council in March, demanded an “immediate and full re-opening” of the pipeline. Poland, meanwhile, admitted it was “completely dependent” on Russia to meet its oil needs.

EU energy commissioner Andris Pielbalgs asked for an “urgent and detailed” explanation from Moscow over the pipeline closure although his spokesman moved to allay fears over an immediate threat to oil supplies to the EU.

He said there was “no reason for alarm now” and pointed out that Poland and Germany had strategic reserves.

German economics minister Michael Glos said:"We will do in all our powers to ensure that this bottleneck does not affect European companies and consumers."

UPDATED TUESDAY 9 Jan, 1pm.

Pielbalgs today said that though Russia had supplied oil to the EU for 30 years "without any problems", the row with Belerus did not enhance its reputation as a reliable energy supplier.

Speaking at a news conference, the commissioner's spokesman called on both sides to speedily resolve the dispute and to restore supplies to the countries affected.

Describing the current situation as "unacceptable", he also urged Russia and Belarus to take "all necessary steps" to avoid a repetition in the future.

The issue will be high on the agenda of  a meeting of the EU's oil supply group in Brussels this Thursday.

Piebalgs' spokesman said the EU relies on Russia for an estimated 30 per cent of its oil supply, half of which comes via the Druzhba pipeline.

Speaking in Berlin today, Commission president, Jose Manuel Barroso, echoed Piebalgs' comments and said the dispute "adds further urgency" to the need for the EU to develop a common energy policy.

 

 

 

 

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