Russia's Gazprom and RWE, the German energy giant, signed the memorandum on cooperation, which opens new opportunities for Russia in the European energy market. Gazprom and RWE are to build in Germany new gas and coal power stations. This deal might seem a surprise, considering the EU's attempts to reduce Russian energy on its market and avoid dependency on Russia. However, if we look at the reasons for signing the memorandum more carefully, they will be clear enough.
First of all, a new “anti-nuclear” wave is sweeping through Europe. This time it is not connected with nuclear armament, but with atomic power stations.
After the tragedy at the Japanese atomic power station Fukusima-1 German society saw radical protests against use of atomic power. As a result Angela Merkel becomes one of the staunchest opponents of atomic
energy in Germany.
On June 30th, 2011, the Bundestag supported the government's initiative on reconsidering the law on atomic power stations. According to amendments to the law, eight atomic power stations should be closed down in the nearest future, and the other nine – in a staged manner. The last plant is due to be shut down in 2022, according to the adopted law. That’s where problems between the German government and four major German energy companies began. These companies, E.on, RWE, Vattenfall and EnBW, are the owners of all atomic plants in Germany. RWE used to have five atomic power stations. Today two of them are decommissioned and one closed down.
Each atomic power station in Germany has a license on production of particular amount of kilowatts per hour. After the decision on refusal from atomic power has been made, it appears that energy companies, which have the license, are not able to produce maximum amount of power, which is written in the license, before atomic reactors will be switched off. Thus, the companies lose billions euro. Probably after legal proceedings against the government they will get compensation, but at the moment it is not the point. That is why RWE decided to cooperate with Gazprom in the sphere of building gas and coal power stations.
Gazprom, which has recovered after the financial crisis and its consequences, is ready to invest in profitable European market, and RWE is interested in reorganization of their business according to new realia of European energy market without atomic power.
Meanwhile, as RWE has 20% of share in NABUCCO consortium and Gazprom is lobbing the rival project South Stream, Russia can become an indirect participant of the Nabucco project, if Gazprom buys a part of RWE shares, which probably happens. Does this fact change attitude of Moscow to Nabucco or not? There is no answer to this question at the moment.
Orkhan Sattarov, the head of European branch of VK
