Russia tightens grip on EU energy supply - Guardian

[Eugene]

Russia tightens grip on EU energy supply


· Putin signs deal for oil pipeline to Greece
· Concerns increased over dependency on Moscow

Luke Harding in Moscow
Friday March 16, 2007
The Guardian

Russia yesterday consolidated its grip as the EU's main energy supplier
by agreeing a deal to build a major oil pipeline across Bulgaria and
Greece.

The 175-mile, $1.2bn (£619m) pipeline will link Bulgaria's Black Sea port
of Burgas with the Greek port of Alexandroupoli. The project will make it
possible for the first time for Russian and Caspian oil to be transported
directly to the EU, avoiding Turkey.

-snip-

The pipeline, however, comes at a time when EU leaders have become
increasingly anxious about their dependence on Russian oil and gas.
Russia already provides Europe with a third of its oil and 40% of its
natural gas.

The latest deal is likely to deepen the EU's dependence on Russian
energy at a time when Moscow's reliability as an energy supplier is
in doubt. EU leaders have been left fuming by Moscow's decision to
turn off Europe's gas supplies during disputes with Ukraine last year
and Belarus two months ago.

-snip-

Full article: http://www.guardian.co.uk/russia/article/0,,2035288,00.html