BELARUS NEWS AND ANALYSIS

DATE:

09/01/2007

Russian-Belarus oil row highlights Germany's growing energy dependency By Saeid Najar Nobari

Berlin, Jan 9, IRNA

Moscow's decision to cut off oil supply to western Europe has once again highlighted Germany's mounting oil and gas dependency on Russia, leading to calls among German political leaders for greater investments in renewable energies and nuclear power.

Russia's second major energy dispute within a year with one of its neighbors -- in this case Belarus -- has sent shock waves through West Europe.

Moscow's latest oil blockade affects mainly Germany and especially Poland which depends heavily on Russian oil and gas supplies.

Russia is Germany's biggest oil supplier with 38.3 million tons of crude oil in 2005, while Poland covered 96 percent of its oil supplies through Russia.

While Berlin views Moscow as a 'strategic energy partner', exemplified by the construction of the Baltic Sea pipeline, Russia's oil and gas blockades over the past year have reignited fears on Germany's political scene that the country's economic growth could be affected by Russia's repeated oil and gas pressure tactics.

Moscow's steadfast refusal to sign an energy security accord between the European Union and Russia has only heightened German concerns, prompting Merkel to urge a common EU energy strategy.

Russia remains a major European energy supplier and delivers 20 percent of Germany's crude oil and 30 percent of its natural gas.

The German government has tried to calm public fears over an energy shortage, pointing to its strategic oil reserves which could last for up to 90 days.

That notwithstanding, proponents of nuclear power and renewable energies have urged the German government to focus greater attention on promoting alternative energies.

The demand was echoed by Chancellor Angela Merkel who was quoted as saying on German television that energy security can only be met through better energy diversification, in a bid to avoid greater dependency on energy suppliers.

Merkel has also called for reversing plans to gradually abandon nuclear energy by the year 2021.

"One has to contemplate what consequences closing down nuclear power plants would have," said the German leader in the wake of the Russian-Belarus row over oil pipeline transit fees.

Germany's grand coalition government -- comprised of Merkel's Christian Democratic Union and its junior partner the Social Democratic Party -- remains deeply divided over the future use of nuclear energy.

Meanwhile German politicians who support a strategic energy alliance with Russia, have argued that as more and more Russian oil and gas companies like Gazprom are making long-term investments in Germany, it will make the country less vulnerable to Russian energy blackmail as both economic interests will become more intertwined.

Source:

http://www.irna.ir/en/news/view/menu-239/0701094760182251.htm