Expert: Russia Needs to Know New Rules of Energy Business

Nation: Russia

Theme: Methodology

Source: "Expert: Russia Needs to Know New Rules of Energy Business — RT." Expert: Russia Needs to Know New Rules of Energy Business — RT. 26 Feb. 2012. Web. 26 Feb. 2012.

<http://rt.com/business/news/eu-russia-energy-policy-317/>.

Summary: Russian Prime Minister Vladimir Putin had said that the new European Union energy policy that separates energy production from distribution increases energy security risks for the European Union. He also argues the third energy package is designed to restrict Russian energy companies, especially the gas producers, from the European market. It may first and foremost affect Russia’s Gazprom, which is involved both in transmission of energy and its production from using their privileged position on the market.

Analysis: The Prime Minister has called for deeper economic cooperation in energy in order to create a common European energy he said “The Nord Stream gas pipeline under the Baltic Sea and the South Stream pipeline under the Black Sea are important steps in that direction. These projects have the support of many governments and involve major European energy companies,” . Many experts agree with the Prime Minister point of view saying that the third energy package would bring uncertainty to the European energy market and would also bring investor confusion.  The European Union says it will be a new system which will me an excellent market for the nation but it is really important for each of the citizens to understand the rules of the business. For other part Mr. Simonov explained that the level of consumption of Russian gas in the Nation determines the amount of investment in the infrastructure of the European gas. He also explained that low consumption means Gazprom won’t be interested in investment. The European customers are likely to be first affected by the new regulations, experts warn. “Gazprom won’t be the first victim of this process; European customers would be the first victims. Europe will have to find this money and the investment [for gas infrastructure]”, Simonov said.