Russia and EU fail to agree common energy policy

RUSSIA: Gas supply squabbles between Russia and Europe are set to continue after the failure yesterday to agree a common energy…

RUSSIA: Gas supply squabbles between Russia and Europe are set to continue after the failure yesterday to agree a common energy policy among the G8 group of industrialized nations.

Despite making energy security its top priority for the summit, host nation Russia failed to hammer out a deal with its EU customers after marathon talks.

Instead splits that opened up when Moscow cut gas supplies to Ukraine over a price dispute remained in evidence among summiteers in St Petersburg.

Meanwhile, the US, which has refused to sign the Kyoto protocol on climate change, failed to agree with the other seven nations on ways to fight emissions. The result was a watered-down statement agreeing to disagree: "We recognise that G8 members pursue different ways to achieve energy security and the goals of climate protection," it said.

READ MORE

For months Europeans and Russians have been deadlocked over the question of gas supply. The Kremlin wants its state monopoly Gazprom to be allowed to buy Europe's pipeline networks, so it can force consumers to buy Russian gas.

But the European Commission has called for a quid pro quo, under which European companies can buy chunks of Gazprom.

Summit partners agreed that nuclear power can provide a safe option both to rising fuel prices and global warming.

The G8 announced: "Those of us who have or are considering plans relating to the use and/or development of safe and secure nuclear energy, believe that its development will contribute to global energy security."

But anti-nuclear groups condemned the move. "Spreading nuclear reactors around the planet will pave the way for new terrorist threats and new potential nuclear armed states," said environmentalist group Grace Policy Institute. "This is how India, Pakistan and now North Korea got the bomb."

Russia also won acceptance for a plan to designate a number of power stations as international centres for fuel reprocessing, a plan that will allow all nations to use enriched uranium bought from the plants, while preventing them from converting this fuel into weapons. The proposal is aimed in particular at Iran.

French president Jacques Chirac said he had not given up hope that the United States, responsible for about one-third of the world's greenhouse emissions, would sign the protocol.

"We cannot talk about energy security while there is no progress on climate change," he said. "Mankind is dancing on the edge of a volcano."