Little the EU can do as members run short of Russian gas

Analysis: Despite EU dissatisfaction with Russia's gas price dispute with Ukraine, the supplier's record has been good for many…

Analysis: Despite EU dissatisfaction with Russia's gas price dispute with Ukraine, the supplier's record has been good for many years, writes Jeff Masom

European Union nations may look with increasing scepticism at Russia's reliability as an energy partner after the resource-rich country cut gas supplies to Ukraine, but the bloc's room for manoeuvre is limited.

"For the time being, they can do nothing but wring their hands," said Daniel Gros, director at the Centre for European Policy Studies in Brussels, of the EU's choices.

"In the longer run, they have to build as many pipelines as possible from as many directions as possible. That's all they can do. And, of course, increase dramatically their strategic stockpiles."

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Several European countries reported sharp falls in deliveries of Russian gas yesterday after Moscow turned off the taps when Ukraine rejected demands for a fourfold price rise. State-controlled Gazprom piped an extra 95 million cubic metres of gas to fill the gap.

The EU executive commission has expressed concern about the dispute and called a meeting of member states' energy experts for tomorrow. Germany, the EU's largest economy, warned Russia its decision could harm Moscow's economic relations with the West, while Ukraine accused its neighbour of blackmail.

"Russia has shown it's not above the temptation of using some bargaining power or blackmail," said Mr Gros. "It shows that if there is a way to get some political-economic advantages from a temporary weakness of your partner, the Russians will use it."

The dispute is likely to add fire to voices - including British prime minister Tony Blair - calling for a common EU energy policy.

Energy commissioner Andris Piebalgs' push for energy efficiency could also get a boost.Analysts said the EU could do little to reduce dependence on Russian energy.

"In terms of transport fuels, nothing really," said Jonathan Stern, director of gas research at the Oxford Institute for Energy Studies. "In terms of stationary fuels . . . obviously there is talk about renewables, coal and nuclear." Boosting output of those fuels carries environmental problems, cost concerns and security risks, however.

Mr Stern said the EU should offer to mediate in the Ukraine-Russia dispute and said, despite EU concerns, Russia has been a good partner.

"I would argue that. . . the Russia track record has been pretty good over the last 40 years and it remains good."

Italy called on the EU to "undertake a diplomatic initiative" and Mr Piebalgs said he did not rule out being mediator.

Policy on Russia differs throughout the 25-nation EU. While the main west European powers - Britain, France, Germany and Italy - have sought privileged relations and courted President Vladimir Putin, the new east European member states and the Nordic countries have pressed Moscow for a tougher line on human rights, democracy and trade.

During the crisis over Ukraine's Orange Revolution last year, Poland and Lithuania took the lead in driving the EU to press for a re-run of the rigged presidential election and to mediate in the standoff, resisting Russian pressure.

Additional reporting by Paul Taylor and Silvia Aloisi in Rome