Russia: Fifth round of sanctions to come predicts expert
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EU ambassadors will continue working on proposals to curb soaring energy prices ahead of a summit on Thursday. A leaked draft reportedly shows that the Commission is ready to call on EU countries to ill up their gas stores at least 90% before the next winter. The move, according to Politico, is to reduce Europe’s “dependency on Russian gas, oil and coal imports:.
But, the draft calls on these members to start refilling gas storage “as soon as possible” and preferably by working “together on the joint purchase of gas, LNG and hydrogen.
Diplomats have already reportedly raised concerns that this could lead to record imports of gas from the Kremlin, who is currently offering energy at “discount” rates.
It is no secret that the EU is already heavily dependent on Russia for much of its oil and gas imports.
Germany, for example, imports around 40 percent of its gas from Moscow.
Russian state-owned monopoly Gazprom operates gas storage facilities in Germany, the Netherlands, and other EU countries.
It is already accused of having deliberately kept its storage at a low level during the summer that preceded the Ukraine invasion.
The proposal will be tabled before a two-day EU summit this week where leaders will debate energy security amid gas supply tensions caused by Russia’s war in Ukraine.
It reportedly states: “The current geopolitical situation requires additional short term measures to deal with the market imbalances for energy and for securing supplies in the years ahead.
“The proposed 90% filling rate is a necessary and appropriate level in order to ensure the security of supply over the winter in case of serious supply disruptions.”
Storage supplies are used as a buffer in case of supply issues and are usually kept at around 25 percent.
This winter, however, they are said to have fallen 10 percent lower than usual, as the Kremlin tightened its grip on the EU.
The draft adds: “As supply disruptions of pipeline gas may occur anytime, measures introducing an insurance policy regarding the filling level of EU storage facilities are introduced. Well-filled gas storage contributes to more secure gas supplies for winter 2022/2023.”
It also calls for EU countries which don’t have gas storage available to make arrangements.
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The Commission is also calling for a new certification scheme for gas storage operators, which excludes any person or entity that may put the EU’s energy security at risk.
According to this proposed new rule, national regulators “shall refuse the certification if it is demonstrated that a person which directly or indirectly controls or exercises any right over the storage system operator may put at risk the security of energy supply or the essential security interests of any member state, or the Union”.
On March 15, the EU launched a new barrage of sanctions against Russia for its invasion of Ukraine.
The European Commission said the sanctions included “a far-reaching ban on new investment across the Russian energy sector”.
The measures hit Russia’s Rosneft (ROSN.MM), Transneft (TRNF_p.MM) and Gazprom Neft , who will be subjected to a transactions ban, but EU members are still able to buy oil and gas from them.
Investment in new energy projects within Russia run by other Russian companies, including gas giant Gazprom , will also be banned.
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