Russian Ambassador to EU: Third Energy Package Will Negatively Affect Consumers

Russian Ambassador to the EU Vladimir Chizhov has said that the Third Energy Package is likely to have negative knock-on effects, for gas consumers, producers and the development of new infrastructure in the EU.

Speaking to the press in advance of upcoming EU-Russia summit, Mr. Chizhov said that implementation of the rules set out under the package could mean that companies will be unwilling to invest in new projects. 

"There is a paradox now in the EU energy market," he said. "We see that major companies involved in infrastructure projects are prepared to invest only in those projects, which are guaranteed to be exempted from the provisions of the Third Energy Package,” he said. "This is a clear indication that this particular set of rules runs counter the interests of business and I would add, of the consumers too."

He pointed to the possible case of a pipeline operator which would have to reserve half the capacity of its pipeline for other suppliers to transport gas through.

"That means that the volume of oil or gas transported by that pipeline would immediately be cut in half," he said. "How would that help the consumer downstream?"

Mr. Chizhov also said that Russia believed the South Stream pipeline project deserved status as a project of European interest, despite previous assertions from the EU that it would not be granted that status. Such status would entitle it to EU financial assistance as well and inclusion in the Trans-European energy networks (TEN-E) list.

"We are looking forward to seeing the South Stream project progressing and we certainly believe that it deserves the same treatment within the EU as Nord Stream and some other pipelines," commented, making reference to the Nabucco project "whose future appears not to be worth much."