EC President Jose Manuel Barroso (file photo) (epa)
March 18, 2006 -- Russia has reassured the European Union it will remain a reliable energy supplier to Europe.
European Commission President Jose Manuel Barroso said Russian President Vladimir Putin had told him Russia will remain a reliable and predictable energy supplier.
Barroso, who is on a visit to Moscow, held talks with Putin on March 17. He urged Russia to uphold democracy and an open economy, including in the energy sector, so as to develop closer ties with the EU.
There have been concerns in Europe about the reliability of Russian energy supplies after a dispute between Moscow and Kyiv over the price of Russian natural gas deliveries to Ukraine earlier this year disrupted supplies to a number of European countries.
Click on the map for an enlarged image.
- Ukraine consumes 70 billion cubic meters (bcm) of gas per year. It produces 20 bcm of its own gas, has a signed contract to import 40 bcm from Turkmenistan, and in 2005 was getting 29 bcm from Russia as payment for transit of Russian gas.
- Ukraine sells some 7 bcm of gas a year to the West and places some in underground storage facilities. These facilities can hold 34.5 bcm.
Ukraine is the sixth-largest consumer of gas
in the world and uses more gas than Poland, the Czech Republic, Hungary, and Slovakia combined.
- Russia has proven gas reserves of 47 trillion cubic meters (tcm) -- the largest in the world ahead of Iran and Qatar.
Russia sells approximately 160 bcm to Europe each year.
By 2015, Europe is expected to import 300 bcm, or 40 percent of its projected needs from Russia.
Russia's Gazprom is the world's largest gas company.
It is the only company allowed by Russian law to export gas outside the borders of the CIS. It also owns the gas-transportation system and most of the gas fields in Russia.
The Russian state is Gazprom's majority shareholder
, with a 51 percent share. The company's ownership rights changed as of the beginning of 2006, with Gazprom stock being sold on the open market. The Russian state, however, will continue to hold the majority stake.