November 15th
Report Presentation “The intelligent energy system infrastructure for the future”
November 16th
Plenary Session:
Energy as a factor of prosperity and sovereignty
Panel discussions:
Impact of the financial crisis on the Energy Sector
Towards secure energy supplies - politics or business?
Skeletons in the cupboard: Lessons learned from the january 2009 gas crisis
Growth Through Innovation. Energy and New Technologies
The EU and the United States in the Run-up to the Copenhagen Conference
On The Way to European Energy Security: What to Expect from the European Union?
The role of foreign investments - how to attract energy in to the investments to the CEE Region
Russian Energy Strategy and New Economic Realities
Plenary Session: Energy as a factor of prosperity and sovereignty
November 16th, 9:00 – 10:30
Moderator: Pawel Lisicki, Editor-in-Chief, “Rzeczpospolita” daily, Poland
There is one question or issue we have to consider when we deal with a subject like energy: what is the correlation or contradiction between prosperity and sovereignty? Are they in contradiction? If yes, how can we see and deal with this contradiction?
Victor Orban, Member of Parliament, former Prime Minister of Hungary
Hungary is an emerging country with contradictions and problems. It will, like other emerging countries, consume more and more energy. Despite many developments, the demand for gas and energy is very difficult to satisfy.
On the other side, we have the EU, which will become more and more dependent on imports because it has not been able to create a competitive and complete energy market and to make a real list of its priorities.
In the EU there is a strong mutuality between the concepts of energy and the concept of politics. From the Russian point of view, it is not true and it is a false impression because the EU has not been able yet to create a policy.
Hungary depends on Russia in 80% as regards exports and that is why nuclear energy is a great opportunity for the Hungarian state. For Hungary, energy capability is the possibility to change, for Europe it is not the same because Europe is unable to decide and consequently to change. Hungary needs an energy strategy to eliminate within 20 years the dependency in terms of energy like in the past Hungary managed, alongside with Poland, the Czech Republic and Slovakia, to eliminate the political dependence on Russia. The Visegrad partnership is necessary to create a central European energy policy and that is why it’s really the time to make an important decision: step out or step in.
Richard L. Morningstar, Ambassador and Special Envoy for Eurasian Energy, USA
Central Europe and the EU need to be partners in the field of energy. That is why the signing of the Nabucco partnership by the Hungarian state is a very important step toward this partnership.
And what about the role of the USA and the EU in energy security? Russia is a reality we must deal with, but in doing this we cannot forget our principles, among them cooperation and diversification. We cannot also forget sovereignty, a concept which is critically important for every country of the central European area
Finally Europe and gas crisis: Europe must avoid another gas crisis and cooperate with Ukraine, whose authorities must reform the energy sector. Hungary and other central European countries must play a leading role.
Mirek Topolanek, former Prime Minister of the Czech Republic
There is one important relation to be analyzed: the one between energy and freedom.
As Sakharov once said, without nuclear energy our freedom is weak. Energy and freedom are the keywords for a real cooperation among the EU and Central Europe.
And what about Russia? We have to diversify resources, production and consumption of energy and this steps are not to be considered as directed against Russia. It’s about sovereignty
The Czech presidency was accompanied by many events and problems but our emphasis on the energy issue is going to be the strongest heritage of the presidency.
Hungary must solve the energy problem and the only way to satisfy our dependency is to invest in the nuclear energy, which is the only instrument to have clean, cheap and always available sources of energy.
Aleksandr Babakov, Deputy Chairman of the State Duma, Russia
And what about alternative energy sources in the context of improved efficiency and the analysis of political relations with energy? Russia should play a driving role in the field of alternative energy sources, when we look at the fact that almost 3 million of jobs have been created in this sector and 140 renewable energy projects are supported by the state budget.
The USA, China, Brazil and India should learn from each other and Russia is ready to learn as well, but Russia cannot be blamed for using energy position to play a political game. Russia has always protected its interests.
Regardless where the energy comes from, it plays a determinant role for the world economy.
Energy experts are very important in deciding and finding solutions not only to energy problems but also to economic ones.
Impact of the financial crisis on the Energy Sector
November 16th, 10:45-12:15
Moderator: Kate Hardin, Senior Director, Head of Russian and Caspian Research, CERA, USA
Last year there have been a great change in the energy sector as a result of the energy crisis.
The price of gas collapsed. In Europe the prices are still a bit higher than in the USA.
Key speaker: Vladimir Peshevski, Deputy-president in Charge of Economic Affairs, Government of the Republic of Macedonia - Stable energy supply is the precondition for healthy energy market development.
Energy companies experience a number of difficulties. The results of the financial crisis are visible in all the countries not only the OECD countries. Now there are numerous openings for unconventional energy sources/ renewable energy. The projections are that in 10 years 25% of the energy is going to be produced using unconventional sources. What is also very important is energy diversification versus strategic partnership. The balance needs to be kept.
Michał Krupinski, Alternate Executive Director of the World Bank for Azerbaijan, Kyrgyz Republic, Poland, Serbia, Switzerland, Tajikistan, Turkmenistan, Uzbekistan
The CEE region has a lot to share when it comes to the lesson we have taken over the last 20 years including energy architecture. At present global economy has contracted for the first time on record. The emerging market spreads have narrowed since the beginning of the crisis. There have been a sharp downturn in private flows and syndicated bank lending dropped sharply in 2009. Large external financing gaps would require greater involvement on lenders on the IFIs. The matter of fact is that ECE region was stuck the most by the crisis. Infrastructure constrains must be addressed to stay competitive.
Mark O. Bettzuge, Director of the Institute of Energy Economics, University of Cologne, Germany
The economic crisis has helped gas crises and prevented Europe from even more severe gas crisis. It was one fortunate effect on the gas crisis. The price situation on gas market effected by the financial crisis. Oil price and gas price – there is a tremendous difference between theses prices as a result of the financial crisis. In Europe, regions look out for competiveness in the energy sector. For European gas, the industry is on the crossroad now.
Enno Harks, senior Fellow at Large, Global Public Policy institute, Germany
Financial crisis has had enormous effect on the energy sector. Any impact on investment? Yes, especially on oil investments. Anyway we do have more oil security than before – sort of strange effect of the financial crisis. There is now the issue of transparency in the oil market. There are only 28 countries that carry out transparent policy with energy issues, reporting all the required data to IEF. Energy independence is technologically possible but politically it is a disaster.
Towards secure energy supplies - politics or business?
November 16th, 10:45-12:15
Reinhard Mitschek, Managing Director, Nabucco Pipeline, Austria
Described the Nabucco pipeline project, which is planned to transport natural gas from Iran, Azerbaijan, Russia or the eastern part of Turkey to Austria via Bulgaria, Romania and Hungary. The pipeline is expected to have the length of 3300 km. Construction is scheduled to begin in 2009, while it should be brought to completion in 2012. The cost of construction will be approximately € 7.9 billion and it will be covered by five states, which will be crossed by the main parts of the pipeline. The project is led by an Austrian joint stock company OMV. The target capacity of the pipeline is expected to be reached roughly in 2020 and equal 30 billion cubic meters of gas a year. The project aimed to construct Nabucco pipeline was included in the Trans-European Energy Network program financed by the European Union. The feasibility study of the project was financed from a European Union grant, while the project itself was approved in 2006.
Mihaly Bayer, Ambassador-at-Large for Nabucco, Hungary
Repeated a quite obvious statement that energy issues become more and more frequently the object of political interest. The business sector is tightly connected with the policy line of the governing elite. Especially such countries as Russia, Iraq, Iran or China use energy resources as a pressure instrument in their foreign policies. The European Union, due to lack of the common energy policy, does not have any possibility to make a strong impact in this respect. For Caspian Sea countries, energy plays a key role in maintaining sovereignty, stable governments and economic prosperity. Vital interests of these countries depend on the energy policy.
Konrad Kreuze, Chairman of the Board of Directors E.ON Hungária
Remarked, corresponding to the speech of his predecessor, that the question 'business or politics'? should be replaced by a statement 'business and politics'. The gas crisis from January 2009 showed the influence of the energy sector's politicization on energy security. Energy issues are perceived in a different way in Russia or Central Asia. Politics has priority there over business, which must follow political priorities. In the European Union, energy policy is based on the principles of profitability, which is a prerequisite in finding investors, transparency and credibility.
Zsolt Nemeth, Member of Parliament, Chairman of the Foreign Affairs Committee, Hungary
Started from a statement that energy security acquired a political dimension. The level of political engagement varies from country to country. In his opinion one can distinguish 5 players:
- The international community.
- The European Union, which, despite lack of the common energy policy, supported and co-financed Nabucco project.
- 10 new member states interested in diversification of energy sources in order to become independent from Russian pressure.
- Ukraine, Central Asia and Caspian region, where energy policy is tightly connected with the issue of sovereignty.
- Russia.
Imre Martha, Chief Executive Officer, MVM - Hungarian Power Companies Ltd., Hungary
Focused on the issue of electricity and remarked that as opposed to gas and oil, it cannot be stored in large quantities. In connection with the above the sector of electrical energy distribution always experiences most painfully of the effects of political turmoil within the scope of energy.
Two years ago, the most popular topic was competition by reasoning that it guarantees security of supplies. Today, the need of diversification of supply is emphasized by increasing the share of nuclear and renewable energy.
Giorgi Vashakmadze, Director, Corporate Development, White Stream Consortium, Georgia
Tried to illustrate the thesis that the best solution to energy issues of the EU is to draw energy from the Caspian Sea resources. It will be possible thanks to the so-called southern corridor plan, which will include Nabucco and White Stream 1 and White Stream 2. The faster specific actions are taken, the better for the EU.
Dariusz Szymczycha, Senior Consultant, Pressdor, Poland
Stressed the importance of geopolitics for energy security. As an example, he mentioned Poland which was not invited to the Nord Stream project.
Skeletons in the cupboard: Lessons learned from the january 2009 gas crisis.
November 16th, 12:30-14:00
Keith Smith, Senior Associate, Energty and national Security Program, CSIS, USA
The situation in the gas market is not transparent, because too many intermediaries follow the rules, which are not clear enough. Gas transits through Ukraine still raise doubts. We must ask ourselves a question, why Ukraine should always be a topic for debates about gas transit. European countries always avoid a clear expression of this issue. The uncertain situation in gas supply can be tackled by extending the gas transit system. New gas pipelines are built, however they will not eliminate Ukraine as the main gas transit centre from Russia to Europe. South Stream can supply approx. 60 billion cubic meters of gas, providing that it is completed within a few years, North Stream - approx. 30 billion cubic meters. Nabucco can transport additionally 30-40 billion cubic meters. Approx. 120-130 billion m3 of gas is transported every year from Ukraine to Europe. Extension of the gas pipeline system is inseparably connected with huge investments. Many European projects have been and will continue to be financed by the European consumers. The consumers pay directly the price for politics and that is why it is a crucial issue. Security is costly.
Peter Poptchev, Ambassador for Energy Security and Climate Change, National Nabucco Coordinator, Ministry of Foreign Affairs, Bulgaria
After the crisis we have learned that we must build new connections. We need interconnections. It means that we should construct a system to reduce the risk of potential energy crises. The crisis occurred in the time when no interstate or regional market existed. To build interconnectors, Bulgaria needs financial resources, which should also include European funds. However, such funds have not been available so far. Russia and Ukraine should not stop gas transits during their mutual conflicts.
Oleksandr Chaly, Ambassador Extraordinary and Plenipotentiary, Ukraine
The points of view of Russia and Ukraine are different. The European law should be a starting point in solving conflicts between Ukraine and Russia. We must consider what should be done to avoid a crisis in the future.
There are 3 elements of crisis:
1. regulatory deficiencies,
2. deficiencies in international regulations concerning transit,
3. Russian policy.
It is necessary to increase the importance of treaties and the role of the law and to understand better technical mechanisms of transit. The European policy needs also to be reformed. The EU reacted too late, when the transit was stopped already. Currently we have separate contracts for gas transit and purchase. We should increase the influence of preventive diplomacy - which is very important both in Ukrainian-Russian relations and in relations between these two countries and Europe. Currently, contractual obligations and not politics should decide about gas transit via Ukraine and in disputable issues - binding should be decisions of the court of arbitration. Today Ukraine has sufficient quantities of gas in store to guarantee continuity of both supply and transit. The declaration that gas transit to Europe depends on the political situation in Ukraine is unacceptable, as well as declarations of the leading Russian politician that transit issues should be taken into account, because Ukraine cannot pay for gas (Putin in Stockholm) or that transit may be stopped in the case of finding out that Ukraine steals gas (Putin in Vienna). Problems with payments, if they occur, or with alleged gas stealing (and it is unreasonable to claim that Ukraine would steal gas since it cannot use the contracted quantities) should not anyhow influence the fact of transit via Ukraine. Transit and internal consumption of gas by Ukraine are two completely different issues. Yet, as we can see, someone may want to use them as excuses.
Jordi Pedret, Member of the Spanish Delegation to the Euro-Mediterranean Parliamentary Assembly (EMPA), Congress of Deputies, Spain
The point of view of Spain - it is important to respect international law also in relations between Russia and Ukraine. Disputable issues can be solved only by international control - which gives a possibility to discuss and recognize the situation objectively. The need to build interconnectors, which would allow us to avoid crises. Such interconnectors must be also related to energy systems.
Marko Mihkelson, Chairman of the EU Affairs Committee, Parliament of Estonia
We talked about energy issues that began in 2009, but they have already existed for a long time. We must be aware of geopolitics and international relations. Russia is active in Asia and in China. The EU also tries to be present there although in a different form. If we look at what happens in reality in terms of building interconnectors and extending systems, it is not too much. The issue of interconnections between countries has not appeared now. Already in 2006 we dealt with breaks in oil supply from Russia via Belarus.Currently in negotiations between the European Union and Russia we have to do with the issue of supply and transit guarantees.Not only political factors should be important in energy relations in Europe, but also transparency of intermediaries and mutual obligations between gas trading companies.
Giacomo Goldkorn, Editorial Director, "Equilibri", Italy
Italy does not participate in any common energy policy, because it negotiates directly with Russia, Kazakhstan, Turkey, Libya and Algeria and the energy policy took on the dimension of bilateral relations.
Potential crises can be avoided by:
1. Increasing the role of international treaties and the role of the law in solving disputes.
2. Increasing transparency of the European policy towards Russia.
3. More flexible adaptation of international treaties to the market conditions and needs.
4. It is necessary to build new gas transit systems, which can work in all directions so that the system could consist of interconnectors in the same time.
5. It is necessary to build systems of interconnection between countries. It will make the European system less prone to unilateral pressures.
Growth Through Innovation. Energy and New Technologies
November 16th, 12:30 – 14:00
Moderator: Hans Kaiser, Head of the Office,Konrad Adenauer Foundation, Hungary
As recently Pope Benedict said, poverty and development must be linked and dealt together if we want to look at the future and to take our responsibilities. Development is possible only if growth is guaranteed and growth is possible only if investments in innovation are made.
Brian Binley, Member of Parliament, Chair of Clean Coal Group,House of Commons, Great Britain
There are 2 main questions that arise when we deal with growth e and innovation in Europe. Does the EU has a common approach? If yes,which dominating strategy or thinking is dominating? One of the main EU issue to be analyzed should be the Clear fusion issue, a field where every EU country should invest. Clean coal policy must play an important real role in the energy policy developments. It is a perfect and sensible technology to be pursued. We must put more emphasis on it in the West and put real money now.
Margaret Kneller, Lecturer and Consultant, John Cabot University, Italy
Carbon emission is one of the main issues concerning the energy and growth discourse. According to recent Financial Times studies, the OECD countries are among the major emissioners of CO2 after the US, Canda, Australia and New Zealand and Russia. The main keys mitigation technologies are the system of energy supply, the trasnport system, the supply system and industry.
Edit Herczog, Member of the European Parliament, Hungary
The main social and economic challenges for Europe in the 21st century are population growth,which has consequences on global warming, energy and row material issues, innovation, which is possible only with ReD investments and new technologies. In addition to this, other issues can enrich the energy debate, like the matter of using carbon low energy, international security and the connection between investment and finance. The Lisbon Treaty will allow the development of Community policies and HighCommissioner will represent and act in the name of the EU also in energy issues. ICT is a key sector in the fight against climate change because ICT sector's own emissions are expected to increase and some ICT opportunities can lead to emission reductions. To achieve this objective, European politicians, using politics and the EU traties provisions, can cooperate with the industry and science sector trhough investments, especially in ReD.
Gyorgy Szabo, Chairman of the Board, Falcon, Hungary
Regional cooperation is very important for Growth and nnovation, especially in the Central-European region. As an example of this type of dialogue and cooperation, we can have alook at a hungarian-romanian-cyech initiative concerning the Cutting-edge laser sciences in the EU.
Maxime Bureau, Director, Public Policy & Investment, GE International Inc., Belgium
One of the basis for developing a growth-innovation connection is the creation of a large domestic/regional marketplace which can be achieved only if the followiong conditions are fullfilled: scalable, competitive supply chain, best technologies, strong intellectual property protection and free trade and competition. The policy tools for Innovation & Jobs remain are basically a global cooperation which leads to have open markets, a political offensive against protectionism and trade barriers, the promotion of innovation, the maintaining or increasing of financing, especially for climate change and pure carbon utilization,
Igor Dekanic, Prof., Head of Petroleum Engineering Department, University of Zagreb
The current challenges for the enrgy sector are mainly the climate changes, energy security, supply and efficiency and the recent global financial crisis. There is a common sense of "energy dilemma". On one side there global targets and requirements which must be respected and fullfilled, concerning renewable energy and technology. On the other there are some business needs like making profits, pursue and promote Community affairs and the environmental protection.
The EU and the United States in the Run-up to the Copenhagen Conference
November 16th, 15:00-16:30
Moderator: Maximilian Teleki, Chairman of the Hungarian American Coalition
Enumerated a number of issues that need to be discussed post Kioto and pre Copenhagen, among others shortages in water and a need for greater efficiency.
James Atkins, Chairman of Verits Environmental Finance, UK
Asked a question what is reasonable to do in order to have a positive influence on climate change. The truth is that we have a choice: either to take an effective action or do not.
Daniel Freifeld, Director of International Programs, Center on Law and Security, USA
Presented a descriptive overview of what can be discussed in Copenhagen. The major shit is visible in the US policy. The Bush administration largely was recessive to multilateral cooperation, including Kioto protocol at the same time avoiding bringing climate change issues to the Senate. Before Obama got elected, Kioto became a symbol of American rejection. At the same time more tan 30 cities passed environmentally friendly legislation. Now the Congress introduced a good bill to reduce the CO2 emission and the administration very much look forward to Copenhagen to prove that the US is serious about the climate change issues. The administration understood that showing empty handed in Copenhagen would not be reasonable.
Jan Szyszko, Member of Parliament, Poland
Copenhagen is targeted at compromise. At first it was difficult to define things like sustainable development as it was necessary to discuss elements like the age structure, deforestation and biodiversity. We need world scale long-term studies of sustainable development, which are connected to culture and biodiversity for creation of places of work in the rural landscape.
Konstantin Simonov, General Director, National Energy Security Fund, Russia
Russian political elites are anxious about Copenhagen but at the same time there is a number of questions to be answered. First of all, why CO2 is the main enemy of humanity and why the reduction of the emission seems to be a key solution? Why Europe is so anxious about fossil fuels and gas emissions? Why don't we first fulfill the Kioto protocol and only than start thinking about a new agreement?"
Vittorio Cogliati Dezza, Chairman, Italian League for the Protection of Environment, Italy
Two years ago the EU approved the new strategy of fighting climate change. Today we are aware that climate change is a global challenge that needs to be discussed by the whole international community. At the same time, some time ago the Italian government (an example of the national level politics) has made some steps back when it comes to climate change. Copenhagen is an important chance to alter the bad trends and drastically reduce the global gas emission.
Hans Larsen, Director of System Analysis, Riso - National Laboratory for Sustainable Energy, Denmark
At this point all the things combined with Copenhagen doesn't look too optimistic, although everybody would like a miracle to happen. The problem is that the political problems combined with climate change are not fully understood. At the same time waiting and further delay would be much more expensive for the international community. The sad story is that the poor people all over the world would suffer the worst if we don' act immediately.
The role of foreign investments - how to attract energy in to the investments to the CEE Region
November 16th, 16:45-18:15
Nuno Ribeiro da Silva, President, ENDESA Portugal, 
FDI (foreign direct investment) needs a clear background of where to invest, transparent law and stability. Predictable busiess environment is a must for the energy sector to develop. Politicians have to close the gap between what is said and done. Now, to be an energy sector investor is like playing in a casino. Volatily of prices, imprecise longterm requirements concerning CO2 emissions make it difficult to make rational business decisions.
Although its hard, legislators need to prioritise the energy sector because it has to compete. Populistic promotion of renewables has to go with real promises, not a contrary action like tax promotion for fossil fuel.
Janos Koka, Chairman of the Nabucco Committee, Parliament of Hungary 
Gap between production and supply is opening up, that is why Nabucco is so important
In fact Nabucco is just one of the ca. 7 similar projects needed till 2030. We have started building Nabucco. After 20 years of postberlin wall Europe, it is time to get rid of iron curtain. However, politnteical and business interests behind Nabucco are still fragmented. Forming new EU commission is a good moment of chaos and a window of opportunity for Russians.
Josef Auer, Senior Economist, Deutsche Bank Research, Germany
There are numerous negative examples of investment is the CEE countries - lack of stability, unfavorable economic conditions in CEE and, most importantly, no PRPTECTION given to the foreign investments (no fair trial, no clear rules, oligarchic system). It's important not only to attract but also to PROTECT the investments.Trust, shared objectives, strong and transparent governance as well as long term strategy (not only populistic hit and run approach).
We must learn how to save money for the import of energy. And we can do it by investing in renewables - especially in biogas.
Steve Mann, Head of Government Relations, Exxon, USA
I admire the government of HUngary, there has been so much of positive changes. Energy sector is governed by one simple rule: reliable supply at economically attractive cost. Russia is and will be a major supplier. We need to accept this fact. It's important to remember about HUMAN CAPITAL. Producers , distributors and innovators need talents and skilled people to develop their business. UPstream oil and gas investment is / will be prevailing in Europe. Investors are looking for a rule of law! It's a critical requirement. Resource holders are under tensions, they have, just as the producers and distributors, social responsibility. Acces to capital at favourable rates is yet another prerequisite for investements to happen. Multinational companies need to have a stronger dialogue with national resource holders.
Helmut Schmitt von Sydow, Professor for European Law, University of Lausanne, Germany
The most important energy is the one we dont consume. Lisbon treaty has the first ENERGY CHAPTER in histrory - new attention paid to that issues. Money loses are great because of the crisis but the fear is bigger - people who have money are affraid to invest - and this is the most important obstacle. Price of an oil barrel is a fact, lack of oil supply is a forcast. Trading in gas - oil price bubble. Money is there, what we need is to build CONFIDENCE for its owners to spend it.
Download Nuno Ribeiro da Silva Speech in pdf
On The Way to European Energy Security: What to Expect from the European Union?
November 16th, 15:00 – 16:30
Serge Poignant, Deputy Chairman of the Committee on Economic Affairs, National Assembly, France
I would like to talk about 3 topics: energy security, energy independence and energy supply. -interconection with electrical networks consum, production. Each country is independent of its neighours. Europe is facing such difficulties as in Germany and Italy in 2006. Than we had the gas crisis in January 2009 between Russia and Ukraine showd us for the frist time in the history of a contract of gas supply between Russia and EU that the cut of the gas supply is possible. France and Germany diversifie their sources and were not such affected of this crises, but other countries, as f.e. Bulgaria or Hungary were very affected. The construction of the EU has to put together the resources and common interests. We are looking to build a strong energy policy. Europe has to create a legal background for the common energy policy. France did adopted the energy climate package ( 3 x 20) which was a priority of the french presidency in 2008. -protection from the fluctuation of the energy prices, more rational use of the resources, diminise of the green glass gases. Isolated initiatives are not good, we need to act jointly. The Eu program Marco Polo is about interability of systems in Europe. We have to increase the production of energy in Europe. We do use more than we produce. Franc eis trying to incrise the production of nuclear energy production, because renewable energy is not enough. We must invest in nuclear energy, such as AREVA. We have to secure european networks. The necessary of energy supplies which becomes from outside Europe solidarity between the 27 european states, which is less in time of crises.
Vasily Likchachev, Deputy Chairman of the Committee on International Relations, Council of Federation, Russia
Putin and Chirac 10 years ago opened a dialogue on energy. The problems of cooperation in this field are: the presence of russian investors on the EU market and the fact that liberaliyation of the gas and oil market should not wear features of discrimination. Russia is willing to diversify its energy production. Brussles signing the agreements with Turkmenistan and Azerbajdzan shows that the EU wants to force the implementation of its legal standards.
Kjell Aleklett, Professor, Uppsala University, Sweden
What is Europe? The eastern border of Europe, in my highscholl atlas shows that the Ural mountains. In this case Russia belongs to Europe. Europe gas imports must increase dramatically. In Western Siberia we can find 90% of the Russian production. The critical thing for the future of Europe is the Yamal Peninsula and its development . But the Yamal development delayed five years. Politicians in Europe do not understand this problem. We want to say that Russia is not our enemy, Europe should understand that and say " Russia wlcome to make a future with the EU".
Jose Eduardo Martins, Member of Parliament, Portugal
I am not sure that the Lisbon strategy has the instruments ti have a secure energy policy. Why do we neeed a common energy policy? We should have free acces in energy policy on three levels: competitiveness, sustainability and security. The future neads a clear definition of sustainability. In european security we have a long term discussion and long term trends.
Viaceslav Kniaznytskyi, Ambassador-at-Large for Energy Security, Ministry of Foreign Affairs, Ukraine
EU has done a lot for Ukraine, especially in the energy filed. On the 1st of december 2005 we have signed the cooperantion between EU and Ukraine. We had very productive relations with the EU in the last years in the energy and transit field. The common paper of J. Solana and B. Ferrero Waldner about the external
dimmension of the foreign policy of the EU. Lessons we have to lear: it should be solidarity actions- we try to establish a framework to how to cooperate. In solidarity actions Ukraine
always was open and this is the most important value to take into consideration in crises situations. The cooperation with the Eu means a lot for us: direct contacts, absolutly transparency of the operators. By the end of 2011 we have to implement two important EU directives 54 and 55 regarding gas and acces to the market. Ukraine has to reform its energy system. Regarding the liberalised market: european legislation is implemented in Ukraine and
Russia should not be angry because of that. Companies should come on the Ukrainian market, not countries. Anyone able to compete on this market is invited to come, in order to modernize our system. We need to start talking about consumer power, not supplier power.
Russian Energy Strategy and New Economic Realities
November 16, 16:45 – 18:15
Mark Pritchard, House of Commons, UK
Underlined that the EU needs a constructive engagement with Russia, especially in the energy field.
Alexandros Petersen, Atlantic Council of the United States
Disputed that Gazprom and Russian energy policy suffered with the global financial crisis. Gazprom, as an arm of Russian state, will not be allowed to suffer as much as other companies during any economic downturn. Major pipeline projects –North Stream and South Stream should suffer but actually they haven’t. The decision makers in Moscow think in geopolitical terms in order to control as much of European and Eurasian energy market as much as possible. Russian energy policy is not defined primarily by profits but it is motivated by national security priorities. It is increasingly clear that we talk not only about a “pipeline game.”
Mihkail Kroutikhin, Editor in chief of Russian Energy Weekly
Companies do not talk about liberalization. There is a group of European companies that are in conspiracy with Gazprom (German or Italian). When we talk about Ukraine and transit routes, in couple years it may happen that Ukraine, as a non transit county, will have to buy gas from Germany. Russian government seems to be an arm of Gazprom, not the other way round, as it was suggested by Alexandros Petersen.
Emmanuel Gaillard, Shearman & Sterling LLP, France
Energy Charter Treaty as a legally biding instrument set objectives to promote investments and to strengthen the rule of law in energy issues. The other instrument is the one announced at G8 Helsinki meeting in 2009 by Miedviediev. The EU rejects Russian proposal to replace the Energy Charter.
Frank Umbach, Center for European Security Strategy, Germany
Part of problems between the EU and Russia is the lack of mutual trust. This communication problem has nothing to do with the economic realities. The Gazprom profits have dropped already before the financial crisis and the investment plans has been revised couple times in 2009.
Alexey Gromov, State Institute of Energy Strategy, Russia
The fact is that we discuss two totally different things- energy strategy of Russian and energy strategy of Gazprom. The interdependency between Russian and the EU member states is mutual. Russia is willing to modernize its energy infrastructure in order to pace the development of Russian energy companies. The EU should be as much interested in this trend as Russia.
Global Gas Report
November 16th, 18: 25 – 18: 55
Presented by Thierry Bros, Senior Gas Equity Analyst, Societe General Group, France
The main way to assure the security of supply is storage. For this moment it is absolutely insufficient (EU in total - 77%, there are few countries where storage capacity has the medium size: Germany, Italy and France). For preventing any next gas crisis, as the one, which happened last year between Russia and Ukraine, the only efficient solution is to maintain high level of storage. Many countries repeat constantly that it is too expensive, but when we study the cost, it is no true, as it costs only 2% of the final tariff.
What's more, the main company which stores gas in Europe is Gazprom, while we need to have many different important storage companies. For the moment, there is only the one company in Europe which recognizes this to be the best way to prevent any future gas crisis: Snam Rete Gas - an Italian company, which since begging of 2009 has stored 97% of gas.
The gas storage can help as well in the situation when the renewable sources, such as wind or solar energy - even highly developed could not assure enough energy. Gas storage could be the answer to this potential trouble.
The other important point, which could be crucial for security of demand as well for gas supply, is transparency. The European countries are far away from this politics as the governments believe that it would be very bad for competition in the market. However, it is no true, as for example the data in the Unites States is a public good and it works very well. Moreover transparency doesn't cost!
Concerning the new project, Mr. Bros is personally against the Nabucco project as we are not sure of the gas, which could come in this pipe, especially he is against financing this unsure, in his opinion, pipe by public money, but off course it could be a private investment.
Commentator, Ole Gunnar Austvik, Head of Research from Norwegian Lillehammer University College believes that the only way to prevent future crises is to replace step by step fossil fuels by renewable, alternative energy sources, as well as by improving energy efficiency, which is still at the begging of developing. One day the most important gas suppliers can run out of their good, and we have to think already today how to prevent this situation.
