Energy cooperation and security

Cooperation in the field of energy is one of the top priorities in Russia - EU relations which are characterized by deepening interdependence.

Russia is the world's largest exporter of natural gas and competes with Saudi Arabia for the position of the largest producer and exporter of oil. Russia possesses more than 20 per cent of the world's natural gas reserves and 5 per cent of proven oil reserves. The energy and metal industries generate around 20 per cent of Russia's GDP.

The EU is the largest consumer of Russian energy products with 63 per cent of Russia's oil exports and 65 per cent of its gas exports heading to the EU. Russia is the largest single external supplier of oil to the EU, accounting for 20 per cent of total imports or some 27 per cent of total EU oil consumption. Russia also accounts for some 44 per cent of EU gas imports, or around 24 per cent of total gas consumption. Despite a certain decline in overall EU energy consumption due to global economic and financial crisis, there are prospects for development of Russia-EU cooperation in energy field: according to estimates of some leading experts in gas field, including IEA and Eurogas, the significant increase in consumption of gas is anticipated in the European Union between now and 2030. Demand for gas in the EU would increase from about 490 bcm today to 695 bcm by 2030. At the same time the internal EU gas production and that of Norway are expected to drop to 33% of total supplies to EU gas markets by 2020 and to 25% by 2030.

There is strong mutual interest in developing more substantial and mutually beneficial energy partnership between Russia and the EU - one that would contribute to strengthening energy security of both sides, promote elaboration of fair rules for energy markets and reinforce their predictability.

The vital part of our activities in this field is to eliminate the potential threat of disruptions in supply of energy resources to the European markets. It is for that purpose that the Memorandum on the Early Warning Mechanism in the field of energy was signed by the Minister of Energy of Russia S.Shmatko and Commissioner A.Piebalgs shortly before the Russia-EU summit in Stockholm on 18 November 2009. The memorandum envisages the modalities of joint work on prevention and resolution of emergency situations in the field of energy with participation of transit countries to ensure sustainable and unhindered energy supply.

It is quite obvious that in order to guarantee reliable and demand-meeting supplies of energy the due transport infrastructure should exist. In this regard and in pursuance of the concept of diversification of energy transportation routes both Russia and the European Union plan to construct a number of new pipelines, including gas pipelines, which are to meet demand on markets in medium- and long-term prospects. The Nord Stream, South Stream and Nabucco gas pipeline projects are among them.

The maximum designed capacity of Nord Stream is 55 bcm per year, South Stream is 63 bcm per year and that of Nabucco is 31 bcm per year. The Russian side urges not to politicize issues of implementation of these projects and proceeds from the necessity to put emphasis primarily on technical and economic aspects, including ensuring the resource base.