Russia files lawsuit with WTO against Third Energy Package

Russia today filed a lawsuit with the World Trade Organization challenging the so-called Third Energy Package. At the heart of the Russian complaint are the EU provisions which prevent a single company from both owning and operating a gas pipeline.

Initially the Third Energy Package was created as a means of protection against the monopolization of the energy market in Europe, but today it has become rather a means of pressure on Russia for the sake of political expediency.

As Valery Nesterov, analyst for oil and gas investment at Troika Dialog, noted in an interview with VK, it must be remembered that, regardless of any discriminatory decisions, the "South Stream" project will be implemented. "It is impossible to assume that the pipeline will be buried, at most it can be frozen for a period of exacerbation. In this regard, I would not worry about whether the price of Russian gas would increase because of these bureaucratic twists and turns - this is only possible in the event of an interruption in supply, and Russia is neither interested in reducing exports nor in any price increase. On the contrary, except for Ukraine, Gazprom regularly lowers prices for European consumers - this is a normal trading position," Nesterov said.

Deputy Director of the Institute for Energy Strategy Alexei Belogoriev drew attention to the fact that the function of the South Stream was redirecting existing gas supplies to Europe, and therefore one cannot talk about the upcoming market monopolization by Russia, which was the main goal of the Third Energy Package. "The only negative development that Europe can expect from the South Stream is a sharp increase in tariffs for the transportation of gas through the territory of Ukraine or another transit crisis," he warned, adding that the stagnating European market in any case does not allow Gazprom to increase gas supplies to the west.