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EU eyes plan to diversify energy but no easy fixes

Published on NewsOK Modified: May 28, 2014 at 10:29 am •  Published: May 28, 2014

AMSTERDAM (AP) — The European Union's executive has proposed a strategy to secure the bloc's energy supplies — and reduce its reliance on Russia — by seeking new sources in the Caspian Sea, the Mediterranean, and importing more liquefied natural gas, or LNG.

But the plan, which EU Energy Commissioner Guenther Oettinger presented Wednesday and will be considered by European leaders at a June 26-27 summit, offers no quick fixes. Europe imports 40 percent of its gas from Russia, half of that via pipelines that run through Ukraine, a situation which would take years of investment to alter.

That dependence proved a weak point for Europe when Russia shut down transmission to Ukraine in 2006 and 2009. It has also been a factor during the current conflict in Ukraine, as European countries reliant on Russian gas have proved reluctant to sanction Moscow over actions such as its annexation of the Crimean Peninsula.

President Vladimir Putin said Wednesday he is hopeful Ukraine can resolve a dispute with Russia's state-controlled gas company Gazprom. Russia wants Ukraine to pay a back bill of $2 billion this month in exchange for lower prices in the future — or face a cutoff that would also affect Europe.

Oettinger has said the EU endorses that basic plan, though Ukraine prefers a price reduction first and has yet to agree.

Putin said Russia has already shipped too much gas to Ukraine without payment.

"It can't go like that forever, and everyone understands it," he said on Russian television.

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