Russ Oil-Gas

23 October 2007 - By Upstream OnLine - Russia will put forward plans for a rapid alert mechanism to give Europe advance warning should Moscow cut off gas supplies during a supply crisis affecting the 27-member bloc, Vladimir Chizhov, Russia's ambassador to the European Union said. Speaking ahead of a Russia-EU summit in Portugal, the ambassador, Vladimir Chizhov, told the International Herald Tribune that the alert system was meant to help restore Europe's confidence in Russia as a reliable energy supplier. "Russia has agreed to warn the EU if Gazprom decides to turn off the tap," Chizhov said. Russians officials, who will unveil the plan on Friday, said the warning system would include a special telephone hotline between Brussels and the Kremlin. Moscow and Brussels would have to designate officials to be on call 24 hours a day in case of an energy supply crisis. The EU wants to avoid a repeat of late 2005, when Russian state-owned gas monopoly Gazprom cut gas supplies to the Ukraine in a pricing battle that led to shortages across the Continent. A dispute between Russia and Belarus last December and January also affected oil supplies to some European countries. Chizhov said energy would figure prominently at Friday's meeting, adding that Russia would also voice its concerns with a new European Commission proposal to prevent Gazprom from taking over power networks in Europe. Under plans submitted by the commission, non-EU companies would be barred from owning a majority stake in gas pipelines or electricity power grids unless their home country signs a reciprocal agreement with the EU. The proposal was contained in a package of measures designed to liberalise the European energy market, underlining European concern that Gazprom would buy up energy assets across the Continent. Chizhov said Moscow was still studying the proposal - dubbed the "Gazprom clause" by many in Brussels - which he said showed it was the EU, not Moscow, that was using its energy resources for political ends. He said the proposal was a source of concern to the Kremlin and Gazprom, since "no matter how you look at it, the proposal does not comply with market principles".