Russian-EU Third Energy Talks Scheduled for Early 2012

The Russian Minister for Energy Sergei Shmatko has said that the European Commission and Russia will meet in early 2012 to discuss possible changes to the Third Energy Package.

Russia has publicly stated its objections to certain aspects of the package, particularly in relation to pricing and the separation of gas supply, sale and transport. The package would particularly affected Russian giant Gazprom which controls the majority of Russian gas projects. However, in discussions with Russian Energy Minister Sergei Shmatko yesterday, European Commissioner for Energy Gunther Oettinger said that, while changes to the terms of the package are "undesirable", some changes could be made for Russia.

"Changes to existing EU law, the so-called Third Energy package, is undesirable and unrealistic," he said. "However, there is a broad range of possibilities for relief and exemptions from the package."

Minister Shmatko said that the parties would meet after the New Year to discuss the changes.

"We have agreed to hold discussions with experts and European regulators early next year to see in which cases and to which extent the exemptions may be applied to gas infrastructure projects," he said.

The talks highlighted the possibility of the European Commission assigning special status to the South Stream pipeline project, given a  a lack of clarity on import infrastructure under the package.

"The European Commission is still ready to discuss the possibility of assigning the TEN (Trans European Network) status to South Stream after receiving more detailed data on its volume and route," Minister Shmatko said.

Mr. Oettinger said that exemptions could be considered once this extra data was received.

"At the moment we have no real concrete conception, so we are waiting for more information," he said. "Then we will see how to possibly combine this with some exemptions."