The EU does not want to be blackmailed by Russia. But several of the member nations are still largely reliant on Russian supply.
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| [Ursula von der Leyen at a press conference on Wednesday] |
The suspension of Russian gas supply to Poland and Bulgaria has sparked a flurry of activity at the European Union's headquarters in Brussels. On Wednesday, the European Commission and specialists from the 27 member states of the European Union met to try to find a solution to the problem.
Ursula von der Leyen, the President of the European Commission, talked of blackmail. According to her, "Gazprom's declaration is yet another effort by Russia to threaten us with gas." EU officials say, however, that they are well prepared: "Our reaction will be quick, coherent, and coordinated." She said that she would work to ensure that Gazprom's actions have the least amount of effect on customers. In addition, the Commission aims to guarantee that the gas storage tanks are fully stocked - mostly via the purchase of liquefied natural gas from the United States.
Von der Leyen stressed that the Kremlin had been unsuccessful in its attempts to divide the EU. Meanwhile, the specialists from the so-called gas coordination group sought to come up with a concerted reaction to Moscow's disruptive activities, but they were unsuccessful. A special gathering of energy ministers is also scheduled for later this year. However, there does not seem to be a speedy fix in sight.
The European Union is confronted with a conundrum. On the one hand, the European Union is contemplating a ban on Russian oil and gas imports, with the goal of punishing Kremlin leader Vladimir Putin for his forceful intervention in Ukraine. On the other hand, several EU nations, notably Germany, are unable to function without gas supplies for the time being. They are preparing for the departure, but they are still reliant on Gazprom for their energy needs. As a result, there are all kinds of contradictions.
Austrian Chancellor Karl Nehammer came to Moscow in mid-April to negotiate a gas supply agreement with Russian President Vladimir Putin, which was met with controversy. Putin said that it will still be able to make payments in euros, according to reports in Vienna after his speech. Meanwhile, Hungary's conservative Prime Minister Viktor Orbán said that he was prepared to pay in Russian rubles if that was what was required. Diverging from the official EU line are also a number of energy providers. According to Bloomberg, four firms have already made payments in rubles.
Even the European Union Commission becomes entangled in its own paradoxes. Payments in rubles may not necessarily constitute a breach of EU sanctions, according to an explanation provided by the Von der Leyen authority last week. The relevant authorities has even prepared a handbook on the subject. Von der Leyen was adamant about not knowing anything about it on Wednesday. In a news conference planned at the last minute, she said that anybody who deviates from the European line and pays in rubles is in violation of the sanctions decisions and could face "significant consequences."
Among other things, the punitive measures dictate that the Russian central bank will no longer be able to access its foreign currency reserves held in other countries. Payments in euros and dollars are, however, almost completely useless for Moscow. Putin is now attempting to balance this with the ruble, as well as to take advantage of the EU's reliance on Russian gas and oil supplies.