The EU -Russia Gaz Pipeline Crisis: Taking Sides with Pipelines
Review of country-level impacts


Global Research, January 18, 2009
Russia Today - 2009-01-17



The aggressive political rhetoric stating that Russia uses gas as a ‘geopolitical weapon’ is very popular in the West. Though the facts tell the contrary.

32 European countries are clients of Russia’s Gazprom. Many of them have neutral relations with Russia, while some have a history of political tensions and even a complete breach of diplomatic ties with Moscow, but it’s only Ukraine that always blames Russia for gas cuts to put political pressure on the country’s authorities.

For instance, in August 2008, Georgia attacked South Ossetia and killed many Russian citizens in the republic, both civil population and peacekeepers. It evolved into a full-scale military operation in which the Russian army entered the territory of South Ossetia to impose peace in the region. During the conflict and after it not a single disruption of gas supplies was registered, not a single complaint heard from Georgia. It’s simply explained by the fact that business is not mixed with politics: the customer (Georgia) fully and in due time pays for the gas, the supplier (Russia) meets its obligations on deliveries.

Another European state that has extremely tough relationship with Moscow is Estonia. The exhumation of remnants of Soviet soldiers in Tallinn led to condemnation from Russia and then to mass protests in both countries. The former Soviet republic also took to court an elderly man, accusing him of deporting Estonians in Stalin times – a charge the man denies, saying he only followed the order to make sure people are safe. Along with this multiple cases of glorifying Nazism in the country have received a strong reaction from Moscow, leading to open diplomatic fights. Estonia is completely reliant on Russian gas – 100 per cent of the blue fuel is delivered by Gazprom - without disruption.

The same picture is with Great Britain and Poland that saw a number of political problems with Russia. They pay – they receive gas. The only example of a gas conflict other than that with Ukraine is the problem with Belarus in 2006. The country simply had not enough money to pay the market price Gazprom named, but very soon a compromise solution was reached: some of Belarusian gas facilities and half of its transit pipeline network were sold to Gazprom. The same scheme was offered to Ukraine, but Kiev refused it along with many others found by Russia.

It’s obvious the problem exists only with Ukraine, and in this conflict Moscow is the only side trying to find a compromise, while Kiev politicians are busy fighting for power. The Ukrainian population does not receive enough fuel to warm their homes, the prices for consumers inside the country are set much higher than the costs the state pays for Gazprom gas, the fuel transited to European consumers is siphoned off. And the latest event shows there’s no will on the Ukrainian side to make things better.

Here is the list of countries purchasing gas from Russian energy giant Gazprom and notes on their history of relations with Russia.

Country: Germany

Russian gas consumption (in billion cubic metres a year): 35.1 (as of 200

Relations with Russia: Very good.

Russo-German relations are at their peak ever since the end of WWII. Germany held a very measured stance towards the Georgian-South Ossetian conflict, declaring support of Georgia's territorial integrity and objections of its acceptance into NATO along with Ukraine.

Gas supply history: one of the most accurate and collaborating clients of Gazprom, a fellow Nord Stream enthusiast and shareholder, Germany holds many of Gazprom's underground gas storages that are instrumental for Europe's energy security, which was underlined once again during the current crisis.

Reaction to the latest crisis:

8.01. German counselor Angela Merkel has encouraged Russia to resume gas supplies as soon as possible.
7.01. Merkel had a phone conversation with Ukrainian Prime Minister Yulia Tymoshenko and received promises of an unhindered gas transit.
6.01. Merkel came with the idea to involve observers in the situation with Russian gas, which was hailed as an excellent one from all the parties involved and quickly agreed upon.

Country: Italy

Russian gas consumption: 22.1 (as of 2006)

Relations with Russia: Couldn't be better.

Italy's new Prime-Minister Silvio Berlusconi is a personal friend of his Russian counterpart Vladimir Putin and has frequently lobbied on Russia's behalf in the EU.

Gas supply history: having no debts to Gazprom, Italy is still short some 27% of its overall gas needs because of the Ukrainian crisis.

Reaction to the latest crisis:

13.01. Berlusconi has declared that he 'understands the reasons' behind Gazprom's actions. "I do not think that we must be worried, but I must say that, if you analyse the situation well, I can understands Gazprom's reasons," he told reporters.
8.01. Economic Development Minister Claudio Scajola stated that Italy has enough gas reserves to last two months and see it through the winter.

Country: United Kingdom

Russian gas consumption: 15.2 (as of 2007)

Relations with Russia: A light at the end of the tunnel.

Ever since the murder of Aleksander Litvinenko in 2006, the two countries were involved in a bitter diplomatic row, which originates of course not from the murder itself, but in the UK's sheltering of some of Russia's accused criminals. This conflict would hardly be hailed by Ivan 'The Terrible' IV, who started correspondence with Elizabeth 'The Virgin Queen' I as early as in 1581. However, the resolving of oil giant TNK-BP's long-running shareholder dispute and dropping of charges against the British Council are definitely good signs.

Gas supply history: despite having to comprehend complicated barter schemes to have their gas reach the UK, Gazprom has never even considered dropping its not-at-all friendly to Russia client.

Reaction to the latest crisis:

8.01. British opposition accuses Gordon Brown's government of 'complacency' over its declaration that Britain will be unaffected by the gas crisis.

Country: France
Russian gas consumption: 10.1 (as of 2007)

Relations with Russia: Fairly good.

A considerable number of joined and trans-national enterprises (like Société Générale – the biggest foreign bank in Russia) and the scheduled launch of Soyuz from French Kourou spaceport indicate a healthy economic relationship between two countries. It was none other than French President Nicolas Sarkozy, who mediated the peace plan that brought ceasefire in the South Ossetian conflict. Also Sarkozy has repeatedly spoken against conflicting with Russia.

Gas supply history: Russia is France’s second-biggest supplier of crude oil and natural gas and France never had any reasons to complain.

Reaction on the latest crisis:
8.01. The office of Prime Minister Francois Fillon released a statement, describing supply cut as Moscow's ‘failure to respect contract’, while Sarkozy joined the voices calling for Russia to resume the gas supplies.

Country: Finland

Russian gas consumption: 4.9 (as of 2006)

Relations with Russia: Building to positive.

A part of Russian Empire for 108 years Finland ended its Russian period becoming a beacon of Western security in the region. However that is now also history, as Finland never attempted to join NATO or take part in suspicious missile defence projects. With the latest surge of attention toward Russia’s Finno-Ugric nations and an ever-increasing bilateral trade Finno-Russian relations looks bound improve.

Gas supply history: The little gas Finland needs (Finland is the third least dependent on natural gas in EU) comes mostly from Russia and up until now Finland looked perfectly content with deliveries and even opted to participate in the Nord Stream project that would bring gas directly to Finland.

Reaction on the latest crisis:

8.01. Sebastian Sass, permitting manager at Nord Stream, stressed its importance for ‘securing a reliable gas supply in Europe’. Meanwhile, according to Finnish law, power plants and industrial establishments have alternative fuel (oil) stocks for three months consumption, so Fins might grab their popcorn and watch the gas drama unfolding.

Country: Netherlands

Russian gas consumption: 4.7 (as of 2006)

Relations with Russia: Fairly neutral.

Ever since Peter ‘The Great’ I, the Dutch were a source of r&d and a major trade partner for Russia, but little more than that.

Gas supply history: A clash between Gazprom and the Royal Dutch Shell over the controlling stake in the massive Sakhalin-2 project had a risk of jeopardising gas supply to Netherlands, but Russian side held its contract obligations and now things look way brighter. Though a major gas exporter itself, Netherlands now look forward to increase the amount of gas they receive from Russia, as its own gas supply will be depleted in 12-17 years. So the Dutch are major Nord Stream enthusiasts and since November 2007 a shareholder of the project as well. Moreover Netherlands agreed with Gazprom on developing a key underground gas storage that will work specifically with NS.

Reaction on the latest crisis:

1.01. Dutch energy ministry said it expects no impact from the gas crisis.

Country: Austria

Russian gas consumption: 4.0 (as of 200

Relations with Russia: Fairly neutral.

Gas supply history: Austria was the first country in Western Europe to start buying Russian gas in the 1980s and didn’t come to regret it. “Our experience is that Gazprom has supplied Austria and Europe for the last 20 years in a very reliable way,â€