Putin Criticizes EU Plan for Liberalization of Gas Markets

Russian Prime Minister Vladimir Putin has criticized the European Union (EU) over its plans to liberalize the natural gas market.

"The European Commission proposals aiming to liberalize gas transportation networks are well-meaning. But it is difficult to estimate the consequences of their implementation," Putin said.

Güenther Oettinger, Europe’s energy chief, has pledged to dismantle barriers that have thwarted the goal of a common European energy market.

European policymakers have introduced legislation to allow for a more liberalised market, in hopes enhancing energy security and avoiding a 2009 scenarios when a Russian cut-off of gas left tens of thousands of citizens without power in the depths of winter.

The EU gave notice of it position during the recent Poland-Russia gas talks and the issue of who would operate the stretch of the Yamal-Europe gas pipeline that lies in Poland.

The Russian premier warned that letting smaller players in natural gas pipeline market might threaten the security of deliveries.

The EU is planning to regulate the ownership of natural gas transmission networks by forcing companies to separate their supply and production activities.

According to Putin, smaller companies have no experience of gas transport and production and might put an additional burden on prices.

Source: ASH/ZHD/HRF