By Anne-France White - 21st September 2006
Russia’s energy policy is set to dominate the agenda at a meeting between Vladimir Putin, Jacques Chirac and Angela Merkel this weekend.
The French president and German chancellor are expected to raise European worries in the wake of Russia’s controversial review of foreign energy contracts.
The three leaders will also discuss Lebanon and try to hammer out a common approach towards Iran’s nuclear programme, in talks that will be mostly focussed on economic issues.
Russia’s state-controlled Bneshtorgbank has become the largest investor in Airbus outside of a core group of Franco-German EADS shareholders.
Russian moves to become a blocking minority shareholders in EADS have rung alarm bells in Paris and Berlin at a time Moscow is blocking the activities of European companies.
On Monday, Russia's natural resources ministry decided to cancel Shell's permit for the €16bn Sakhalin-2 development – prompting stern rebukes from the EU and Japan.
Chirac is also expected to raise worries over a Russian move to review a contract with French company Total to develop the Kharyaga oil field in the Arctic.
Concern is growing that the Russian government is seeking to renegotiate production sharing agreements in favour of Moscow.
“In order to ensure that companies are willing to invest in multi-billion euro energy projects, a secure and predictable investment climate is necessary in Russia as in the EU or indeed any country,” EU energy commissioner Andris Piebalgs said on Tuesday.
Another potentially thorny issue at the summit is Russia’s cooperation agreement with the EU, which is up for renewal next year when the current ten-year accord expires.
Media reports say Putin is keen for the new agreement to confirm on paper Russia’s more assertive relations with Europe – in particular, Moscow wants the EU to recognize its role as the continent’s biggest energy supplier.
Germany, which takes over the EU presidency in January, will be in charge of renegotiating the agreement; this is thought to be beneficial for Moscow, as Berlin is seen as one of Russia’s closest allies in the EU.
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