Issue 8: August-September 2011

A Snapshot of Key Developments in the External Relations of the Russian Gas Sector
Key points:

• Gazprom partners raided by European Commission Anti-trust Inspectors
• The dispute between Moscow and Kiev continues. Ukraine knows that it has a weak bargaining position and is in no hurry to make concessions to Russia
• Prime Minister Vladimir Putin launched the first string of Nord Stream, meaning Ukraine is now in danger of losing its status as the main transit country for Russia’s European gas exports
• Gazprom has signed roadmap with South Korea's Kogas for the construction of a pipeline from Vladivostok to South Korea
• Gazprom may suspend its project in Nigeria because of the lack of a law governing the oil and gas industry, although experts say Gazprom may have lost interest in this project because of potential difficulties in selling Nigerian gas
• Gazprom is looking to acquire two state-owned oil and gas companies in Kyrgyzstan
• The Gazprom affiliate Vemex has acquired a 51% stake in RSP Energy, marking the first time a Gazprom Group company will sell gas and electricity to Czech households
• Gazprom has signed a legally-binding agreement with its European partners on the implementation of the South Stream project, but has attracted criticism from the EU. According to Russian sources, EU Energy Commissioner, Guenther Oettinger, views South Stream as an attempt by Moscow to derail the ‘Southern Corridor’ gas supply diversification concept
• In line with new oil production projects in the region, Gazprom Neft is considering the construction of a new oil refinery near Murmansk
• Gazprom expects a doubling of the Mineral Extraction Tax by 2013.

• October 12, 2011

Belarusian President Alexander Lukashenko agreed on Tuesday that Russia should build the country's first, $9 billion nuclear power station.

• October 11, 2011

Azerbaijan may give consent for construction of a new nuclear reactor in Armenia, director of the Radiation Problems Institute of Azerbaijan National Academy of Sciences (ANAS) Adil Garibov told Trend on Monday.

• October 11, 2011

Putting the onus on India, Secretary of State Hillary Clinton on Sunday said the US has made clear the steps New Delhi needs to take to allow the two nations to move forward on implementation of bilateral civil nuclear deal.

• October 10, 2011

Lithuanian Seimas speaker, currently on a visit to Japan, discussed parliamentary controls over the energy sector with the speaker of Japan's House of Representatives, Takahiro Yokomichi, the press service of the Seimas said. At the meeting, Irena Degutiene inquired her counterpart about Japan's attitude to the situation and prospects of nuclear energy, parliamentary controls over the energy sector.

• October 7, 2011

The Kazakh Unified Energy System has recorded non-contractual power flows from Uzbekistan since September, Kazakhstan Electricity Grid Operating Company KEGOC said.

• October 7, 2011

Bulgaria's state-run power grid operator has tabled a lawsuit against Russia's state nuclear company Atomstroyexport over delayed payments on the planned Belene nuclear plant.

• October 6, 2011

This story by Igor Tomberg, Director of Energy and Transit Studies Center of the Institute for Oriental Studies of the Russian Academy of Science, professor at the Moscow State Foreign Relations Institute of the Russian Foreign Ministry, Strategic Culture Foundation expert, was published in International Affairs magazine.

• October 6, 2011