ENERGY : RUSSIA'S OIL DISPUTES NO THREAT TO EU SUPPLY.

PositionBrief article

Russia's disputes with Ukraine and Belarus have not led to any disruption of oil supplies for EU customers. Unlike with Belarus, Russia's state-owned oil company Transneft was able to reach an agreement with Ukraine's Naftogaz on fees to be paid in 2010 for transit before the end of the year. However, the breakdown in negotiations between Belarus and Russia over the contractual and price conditions for delivery of oil led, on 1 January 2010, to the cut-off of supplies to Belarus oil refineries (but not for domestic Belarus or European customers).

After initial worries, the European Commission quickly stated that it no longer saw any risk of disruption of supplies to the EU via Ukraine. The new oil stocks directive, adopted in September 2009, also ensures a greater degree of flexibility in the event of any real disruption. Some 15% of Germany's oil consumption comes via the Druzhba pipeline through Belarus, compared to around three-quarters of Polish...

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