The US, the European Union and the Russian gas

Russia cancelled its South Stream pipeline project meant to deliver Russian gas to central Europe. The pipeline would have bypassed Ukraine.

Valentin Țigău, 04.12.2014, 12:03

The US supports the efforts of the European Union to reduce its dependence on Russian gas by diversifying its sources and delivery routes, the US Secretary of State John Kerry told the EU-US Energy Council in Brussels on Wednesday. According to Radio Romania’s correspondent, Kerry said the European Union and the US need a reform plan for their energy sectors, given that domestic consumption has seen a major increase. He also said that steps should be taken to improve energy efficiency and develop non-polluting economies.

John Kerry congratulated the European Union for its agreement on the delivery of Russian gas to Europe via Ukraine. The meeting in Brussels came one day after Russia had announced its decision to drop the South Stream pipeline project. Evaluated at 40 billion euros, it was meant to bypass Ukraine as a transit country, following a gas price dispute between Moscow and Kiev that affected gas deliveries to Europe.

The European Union purchases 300 billion cubic metres of gas every year, of which 125 billion from the Russian company Gazprom. President Vladimir Putin’s decision to scrap South Stream came as a surprise, all the more so as he has been a strong supporter of the project, having invested in it a lot of political capital. After the meeting in Brussels, both the European Union and the United States said energy should not be used as a political tool, bearing in mind the example of Ukraine.

After the failure of the Nabucco and South Stream projects, creating a delivery route for natural gas to connect Greece, Bulgaria, Romania and Central and South-Eastern Europe continues to be an important issue. In the medium-run, Romania will not be affected by the gas crisis, owing to reserves of 100 billion cubic metres. On Thursday, Romania’s Chamber of Deputies postponed the gas price liberalisation for household consumers for June 2021. The measure is intended to protect the population, following signals from thermal energy producers about an increase in the cost of natural gas early next year.