Russia's Lavrov: EU energy market reforms hindering closer ties

Russia and the European Union can achieve closer energy ties but the EU's gas market reforms remain a roadblock, UPI quoted Russian Foreign Minister Sergei Lavrov as saying. Lavrov, in an article published Tuesday in the Journal of Common Market Studies annual review, said Moscow and Brussels are capable of developing "energy co-operation, leading in the future to a single European energy complex." But he warned the implementation of the EU's "Third Energy Package," which seeks to "unbundle" ownership of natural gas production and transmission lines such as those operated by Russia's Gazprom -- is hindering closer ties. The European Commission contends such "vertically integrated" systems squelch market diversification and violate antitrust principles, resulting in artificially high energy prices. Russia, Lavrov said, "is seriously concerned about the EU's steps to implement the Third Energy Package, which it portrays as a measure to improve anti-trust regulations. "Of course, we do not question the EU's right to regulate its markets, but we expect it to abide by its international legal obligations," he said, contending the reforms violate the 1994 Russia-EU partnership and cooperation agreement as well as other bilateral investment deals. "The Third Energy Package has already created problems for practical co-operation," Lavrov said. "Certain EU countries are now less appealing to Russian businesses, and systemic risks are higher. In some cases, we see de facto expropriation of Russian companies' assets. We never expected to face this kind of situation in the EU."