Energy minister Shmatko – Russia-EU energy talks hit dead end

Talks between Russia and the European Commission on energy market regulation in the EU have hit a “dead end”, said Russian Energy Minister Sergei Shmatko.

Both parties had failed to reach an understanding on the EU’s third energy package, a set of energy market rules requiring gas suppliers to divest pipeline infrastructure. The “unbundling” was opposed by Russia’s gas export monopoly Gazprom, which supplies around a quarter of Europe’s gas, as it seeks to build its presence in gas distribution and marketing.

Talks with the European Commission on the third energy package … have hit a dead end,” Shmatko was quoted by Reuters, adding that the talks had failed to take adequate account of Russia’s interests as a major energy supplier.

“What does this mean? Nothing terrible,” Shmatko added. “All the obligations that the Russian Federation and Russian companies have taken on with regard to supplies of energy under long-term contracts will without doubt be fulfilled.”