EU and US working to ensure European gas supplies amid conflict fears

The EU and US announced plans to ensure a stable supply of energy to Europe on Friday as fears grow that Russia might invade Ukraine, unleashing war in the region and disrupting existing pipeline flows.

"The United States and the EU are working jointly towards continued, sufficient, and timely supply of natural gas to the EU from diverse sources across the globe to avoid supply shocks, including those that could result from a further Russian invasion of Ukraine," European Commission President Ursula von der Leyen and US President Joe Biden said in a statement.

Russia has massed tens of thousands of troops along Ukraine's borders, triggering concerns that Moscow could be preparing to seize further territory from its neighbour. Russia has repeatedly denied plans to invade, however.

One long-standing point of contention is the way Russian gas shipped across Ukrainian territory on the way to Europe is treated and billed.

A flurry of diplomacy in recent weeks has failed to lead to a breakthrough. Western allies are now also raising the numbers of troops in Eastern Europe.

Many worry that Russia could stop deliveries of natural gas to countries which depend on supplies from Moscow.

"We also share the objective of ensuring the energy security of Ukraine and the progressive integration of Ukraine with the EU gas and electricity markets," von der Leyen and Biden said in their statement.

"The current challenges to European security underscore our commitment to accelerating and carefully managing the transition from fossil fuels to clean energy," the statement read.

Supplies of liquefied natural gas (LNG) would decrease many countries' dependency on gas from Russia. The United States is already the largest supplier of LNG to the EU.

"LNG in the short-term can enhance security of supply while we continue to enable the transition to net zero emissions," the statement said.

"We intend to work together, in close collaboration with EU Member States, on LNG supplies for security of supply and contingency planning."

Linked to this debate is the fate of Nord Stream 2, a new pipeline designed to deliver natural gas from Russia straight to Germany. Nord Stream 2 is to bring 55 billion cubic metres of gas annually from Russia to Germany, bypassing Ukraine, thus making it controversial. Construction was completed weeks ago, but is not yet in operation.

The US government has criticized the pipeline in the past as making Europe too dependent on Russia for its energy supply. Meanwhile the financially weak Ukraine is urgently dependent on income from fees for gas transit and now fears heavy losses.

As Nord Stream 2 prepares to begin operations, a new subsidiary set up in Germany to run the pipeline has encountered difficulties regarding the staffing of its supervisory board.

The German Foreign Office blocked former diplomat Dieter Walter Haller from becoming board chairperson, a spokesperson said on Friday.

"An internal review has shown that the assumption of this role must be prohibited because it would impair official interests," ministry official Christopher Burger explained.

According to Burger, Haller had notified the Foreign Office of his intention to take up work as a retired civil servant in accordance with section 105 of the Federal Civil Servants Act.

The new, Germany-based subsidiary, named Gas for Europe GmbH, was unveiled on Wednesday. It will become the owner and operator of the German part of the pipeline in order to meet a requirement for certification set by the Federal Network Agency.

On the Gas for Europe website, Haller was initially still listed as supervisory board chairperson.

It said he had previously performed various leading positions in the Foreign Office and the Federal Chancellery. Among other things, he had served as ambassador to Saudi Arabia and South Africa and was managing director of a consulting firm.

Source: DPA

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