EU's Juncker Tilts at Nord Stream-2, Appeals for Dialogue

Despite ongoing EU and US economic sanctions against Russia since its 2014 annexation of eastern Ukraine, European Commission president Jean-Claude Juncker accepted an invitation to attend the St Petersburg Economic Forum where he called the EU a "partner and asset for Russia."

Yet as he sought rapprochement, he signaled there would be no concessions over the Third Energy Package, nor the redevelopment of that energy diversification and security policy, Energy Union.

Speaking at the St Petersburg Economic Forum on June 17, he said: "We are deepening the world's biggest Single Market of 500mn consumers. Our Energy Union will help to deliver secure and affordable energy, equipped with clear rules making our market open and our economy more competitive. We need to be sure that all countries of Central and Eastern Europe have non-discriminatory access to energy supplies."

European Commission president Jean-Claude Juncker (Photo credit: www.europa.eu)

In a critique of the Gazprom-led Nord Stream-2 pipeline project that could reduce gas flows through Ukraine and slash its transit revenues, Juncker said: "I have a strong preference for pipelines that unite rather than for pipelines that divide."

"With our international partners we have worked hard to secure an international order that is based on rules and cooperation – from climate change to global trade to fair taxation," the commission president added: "In all of these ways, the European Union's project for peace and prosperity is alive and well. I believe Russia should welcome this because a stronger and more effective EU is a strategic asset and a better partner for everyone."

His speech however comes six days before the UK, one of the largest EU-28 countries, votes whether to leave or remain in the EU. Many pundits believe that a "leave" vote by Britons would be welcomed by Russia's leadership as it would undermine EU cohesion on energy and trade sanctions.

Juncker nonetheless did not mince his words about eastern Ukraine.

"The illegal annexation of Crimea and Sevastopol, and the conflict in and around eastern Ukraine put the relations between the European Union and Russia to a severe test. Russia's actions have shaken the very principles of the European security order. Sovereign equality, the non-use of force and territorial integrity matter. They cannot be ignored."

Yet Juncker said he believed in the power of dialogue: "If our relationship today is troubled and marked by mistrust, it is not broken beyond repair. We need to mend it, and I believe we can..... I have known President Putin for many years. We talk often, and we talk openly – very openly. If we need to have a frank conversation today, it will not be the first time and probably not the last. We will talk as long as it takes."

Mark Smedley | www.naturalgaseurope.com