News & Current Affairs

January 6, 2009

Europe’s reliance on Russian gas

Europe’s reliance on Russian gas

A gas storage and transit point on the main gas pipeline from Russia in the village of Boyarka near the capital Kiev, Ukraine

Turned-off taps have caused gas shortages in Europe

The latest developments in the dispute over the price Ukraine pays Russia for its gas has yet again affected deliveries to other countries.

Several countries in Europe have reported a sharp decline or even complete cessation of gas supplies from Russia via pipelines through Ukraine.

This has reinforced unease in Europe about the important role that Russia has a supplier of gas.

A quarter of the gas used in the European Union (EU) comes from Russia.

And that share will rise.

Increasingly dominant

Europe’s need for gas is likely to increase.

Europe’s gas pipeline network

Economic growth, when it resumes after the current recession, will mean more demand for electricity.

Gas accounts for about a fifth of the EU’s electricity and the share is likely to grow, partly because gas produces less by way of greenhouse gas emissions than coal or oil.

The EU does have other suppliers, including Norway and Algeria by pipeline, and Qatar and Algeria, again, by ship.

But Russia, with the world’s largest gas reserves and an extensive network of pipelines to Europe, is likely to be increasingly dominant.

Soviet legacy

The EU, unless it drastically changes its energy strategy, will need Russia.

EU GAS IMPORTS FROM RUSSIA
100% dependent on Russia: Latvia, Slovakia, Finland, Estonia
More than 80% dependent: Bulgaria, Lithuania, Czech Republic
More than 60% dependent: Greece, Austria, Hungary
Source: European Council on Foreign Relations, 2006 figures

But Russia in turn needs Europe to buy its gas, and also its oil.

So it is not in Russia’s interest for Europe to become more wary of using gas as an energy source.

So far the disturbances to EU supplies have been a side effect of the recurrent dispute between Russia and Ukraine, with both sides blaming the other for the reduced supplies to the west.

The quarrels are a legacy of the end of the Soviet Union.

Ukraine has been receiving relatively cheap gas.

Russia’s Gazprom wants to charge more, and the negotiations are complicated further by questions about what fees Ukraine should receive for gas crossing its territory.

Some European countries are protected with substantial stocks to cover any supply disruptions for many weeks, although some, such as Bulgaria have very little cover.

The disruptions also reinforce the attractions of developing new pipelines that avoid potential problem areas.


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August 28, 2008

August 6, 2008

Arctic Map shows dispute hotspots

Arctic Map shows dispute hotspots

VIEW THE MAP
Durham University)
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British scientists say they have drawn up the first detailed map to show areas in the Arctic that could become embroiled in future border disputes.

A team from Durham University compiled the outline of potential hotspots by basing the design on historical and ongoing arguments over ownership.

Russian scientists caused outrage last year when they planted their national flag on the seabed at the North Pole.

The UK researchers hope the map will inform politicians and policy makers.

“Its primary purpose is to inform discussions and debates because, frankly, there has been a lot of rubbish about who can claim (sovereignty) over what,” explained Martin Pratt, director of the university’s International Boundaries Research Unit (IBRU).

“To be honest, most of the other maps that I have seen in the media have been very simple,” he added.

“We have attempted to show all known claims; agreed boundaries and one thing that has not appeared on any other maps, which is the number of areas that could be claimed by Canada, Denmark and the US.”

Energy security is driving interest, as is the fact that Arctic ice is melting more and more during the summer
Martin Pratt,
Durham University

The team used specialist software to construct the nations’ boundaries, and identify what areas could be the source of future disputes.

“All coastal states have rights over the resources up to 200 nautical miles from their coastline,” Mr Pratt said. “So, we used specialist geographical software to ‘buffer’ the claims out accurately.”

The researchers also took into account the fact that some nations were able to extend their claims to 350 nautical miles as a result of their landmasses extending into the sea.

Back on the agenda

The issue of defining national boundaries in the Arctic was brought into sharp relief last summer when a team of Russian explorers used their submarine to plant their country’s flag on the seabed at the North Pole.

A number of politicians from the nations with borders within the Arctic, including Canada’s foreign minister, saw it as Moscow furthering its claim to territory within the region.

Mr Pratt said a number of factors were driving territorial claims back on to the political agenda.

“Energy security is driving interest, as is the fact that Arctic ice is melting more and more during the summer,” he told BBC News. “This is allowing greater exploration of the Arctic seabed.”

Data released by the US Geological Survey last month showed that the frozen region contained an estimated 90 billion barrels of untapped oil.

Mr Pratt added that the nations surrounding the Arctic also only had a limited amount of time to outline their claims.

“If they don’t define it within the timeframe set out by the UN Convention on the Law of the Sea, then it becomes part of what is known as ‘The Area’, which is administered by the International Seabed Authority on behalf of humanity as a whole.”

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