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EUROPOLITICS / EnergyPrint this article | Print this article

EU-Russia summit

No guarantees on gas supply and WTO

By Dafydd ab Iago | Wednesday 18 November 2009

In Stockholm, Russian President Dmitry Medvedev gave no guarantees to the EU as to guaranteeing gas supply or Russia’s entry into the World Trade Organisation. Despite the lack of progress, both Medvedev and Swedish Prime Minister Fredrik Reinfeldt claimed the 18 November talks were constructive. Top issues further included the financial and economic crisis as well as a range of international foreign policy questions, such as Afghanistan, Pakistan, Iran and conflicts in the Southern Caucasus.

Speaking to journalists following the meeting, Medvedev confirmed Moscow’s fresh commitment to reduce Russia’s CO 2 emissions by 25% from the level in 1990, by 2020. “We have the same concerns,” said Medvedev, talking of a common objective with the EU to convince other states of these climate goals. Commission President José Manuel Barroso, also in attendance with EU High Representative Javier Solana, welcomed this new commitment as “very encouraging”. Barroso urged both the EU and Russia to remain committed to the target of avoiding a rise in average global temperatures of more than 2°C.

As for energy issues, Barroso underlined the interdependence of both partners, pointing to the ‘early warning mechanism’ (see Europolitics3861). This mechanism, formally endorsed in Stockholm by EU and Russian leaders, foresees a range of enhanced measures to prevent, or rapidly respond to, a repeat of energy crises, such as the supply cut-off in January 2009. Nonetheless, the EU did not see its - unrealistic - wish fulfilled. There were no guarantees by Medvedev that flows of Russian gas to the EU would not be cut off if transit country Ukraine defaulted on its monthly payments.

The Russian president, for his part, used the opportunity to note various means, aside from the newly enhanced ‘early warning mechanism’, for safeguarding security of energy supply. He pointed to Russia’s initiative for an international energy treaty to replace the Energy Charter. He also mentioned “good” progress on the pipelines North and South Stream.

Barroso further reiterated his commitment to “rapid” accession of Russia to the WTO. The EU, though, failed to get the further clarification it had been looking for from the Russian side as to the next steps in the accession process. Barroso expressed concern at “detrimental” tariffs that could arise for EU products entering Russia, from 1 January 2010, under the new Common External Tariff system of the Customs Union between Russia, Belarus and Kazakhstan. Medvedev, though, saw no grounds for such concerns. “Tariffs would be lower than those used by the Russian federation now,” he stated. The Russian president was unclear on the key issue of whether Russia insists on entering the WTO together with Belarus and Kazakhstan: “Both might happen,” said Medvedev. “The main thing is the speed of our accession.”



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