Gazprom and Europe, with Baltics in the Middle

Oct 10

AleksUncategorized Comments Off

VILNIUS – Gas pipelines throughout Europe mostly come from one place, Gazprom.

The Russian energy giant dislikes competition on its own turf because it deals with Russia’s strategic reserves. So the party line goes anyhow. However, it doesn’t mind getting dibs on pieces of energy enterprises throughout Europe.

That’s the company from the country that wants to join the World Trade Organization.

The European Union considers “unbundling” the energy sector in the 27-nation bloc. It is basically the opposite of bundling that Microsoft was involved in in the EU before it received a slap on the wrist and a big fat fine from the Europeans.

Here at the conference some experts — and we know they’re experts because they’re boring and wearing glasses — suggest that “unbundling” doesn’t go far enough.

As one British expert put in a polite British manner, Gazprom has “a certain reputation of having shadowy daughter-companies,” adding “I’m terribly sorry for suggesting it.” Meaning Russians know how to get around the system.

No one probably knows it better than any post-Soviet countries, including the Baltics. Examples are many —

The recent Days of Our Lives saga between PACE and Estonia, Russia’s demand Ukraine pay its bills and the rich history of mutual understanding and cooperation between the Baltics and Russia show that when it comes to energy Russia is a reliable partner.

And again, the wibly-wobbly European bloc is urged to act to protect the Baltics in case Russian supplies supplies dwindle or its political attitude toward the Baltics shifts.

“Among the first countries they’re going to cut [are] the Baltic States, and Georgia. We know this is coming and we know this has already happened. It’s likely to get worse. You cannot leave the Baltic States in such a vulnerable position,” said Alan Riley, a professor at the City Law School in London.

And when all pipelines spear Gazprom, it would make it a long winter ahead for the Baltics.

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