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Polish gas boss warns EU to heed Moldova lessons on Russia reliance

Moldova’s gasoline disaster was a warning to Europe of the dangers of being too depending on Russia’s Gazprom, the chief govt of Poland’s state-controlled gasoline group PGNiG has stated.

Moldova declared a state of emergency final month after Gazprom minimize provides to the jap European nation by a 3rd following the expiry of a long-term contract and demanded Moldova pay greater than double the earlier value to maintain gasoline flowing.

Folks briefed on negotiations instructed the Monetary Occasions that Gazprom had pushed for political concessions from Moldova’s new pro-EU authorities in change for cheaper gasoline. Gazprom denied this and stated that the talks had been “completely on business phrases”. The 2 sides signed a brand new long-term supply contract on Friday however a duplicate of the settlement seen by the FT suggests Moldova made geopolitical concessions.

Pawel Majewski, chief govt of PGNiG, stated the episode ought to function a wake-up name to Europe, which will get 35 per cent of its gasoline from Gazprom, and warned that Gazprom’s newly accomplished Nord Stream 2 pipeline, which can carry gasoline from Russia to Germany and is awaiting approval from Berlin to begin working, would make Europe extra susceptible.

“This example [in Moldova] is symbolic as a result of it reveals clearly what Europe, which is placing its gasoline infrastructure to a big extent in Russian palms, may need to face,” he instructed the FT.

“That is proof of what we’ve been saying for a lot of months: that sadly the pursuits of the principle gasoline provider from the east are enforced laborious. Gazprom is just not a buddy of the EU.”

Earlier than Gazprom’s new take care of Moldova, PGNiG struck an settlement to offer virtually 2m cubic metres of gasoline to the nation, the primary time that the previous Soviet state wedged between Ukraine and Romania has acquired gasoline from a non-Russian supply.

Majewski conceded that the deal was solely a fraction of Moldova’s annual gasoline consumption of about 1bn cubic metres however indicated that PGNiG can be ready to provide extra if wanted in future. “We had been prepared to assist and nonetheless can be obtainable to take action ought to extra gasoline volumes be wanted.”

In addition to the stand-off with Moldova, Gazprom has come beneath fireplace for limiting gasoline provides to western Europe to solely these coated by long-term contracts this yr, whereas draining its storage amenities within the continent to unusually low ranges forward of the winter.

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Critics contend these strikes have exacerbated an power disaster. Gazprom has repeatedly denied such claims and Russian President Vladimir Putin stated final month that it was “full garbage” to say that the Kremlin used gasoline provides as a political weapon.

Nonetheless, nations in central Europe stay deeply distrustful, and Poland has fought an extended battle in opposition to the brand new Nord Stream 2 pipeline, arguing that it’ll enhance the EU’s dependence on Moscow.

Germany’s financial system ministry stated final month that permitting Nord Stream 2 to begin supplying gasoline to Europe wouldn’t endanger Germany’s or the EU’s power safety. The ministry’s evaluation is more likely to pave the way in which for the pipeline to obtain certification from Germany’s Federal Community Company.

Majewski stated Poland had submitted 600 pages of knowledge to Germany’s financial system ministry stating its considerations about Nord Stream 2 and was “extraordinarily shocked” that the ministry had reviewed this in fewer than 4 working days and nonetheless given its blessing to the pipeline.

He added that PGNiG was ready to take authorized motion to guard its pursuits if wanted. “We’re ready for a call of the Federal Community Company, and as a celebration we are going to contest all selections which don’t meet European authorized requirements,” Majewski stated. “We’re additionally a participant on this market and we wish to be handled equally, and we are going to use all authorized paths obtainable to implement our rights.”

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