Baltic States need more effective energy cooperation

Ivars Godmanis, head of Latvian government in 1990-1993, has been set up as Latvia’s new Prime Minister. I believe this to be good news both for Latvia and the Baltics as a whole. I remember him from times past as a good partner and also a government leader daring to take unpopular but necessary decisions, even at the cost of personal popularity. Back then, Godmanis was especially interested in energy. I hope this will continue to be the case. Dependence on Russian gas and lack of necessary interconnectors in the European direction requires a greater unity between us than we have had up to now. We are under strong political pressure. By playing on the interests of various circles in different Baltic States, it is regrettably quite easy for Russia to divide us. We should also not forget that the Eastern side may soon start experiencing difficulties with supplies, as the necessary investments into new gas fields and infrastructure have not been made.

The Baltic States need to upgrade their cooperation to draw their European partners’ attention to the fact that the European Union should not be abandoning the Energy Charter Treaty which represents EU values, free markets and the rule of law. More specifically, this means making the European-Russian cooperation dependent on the ratification of Energy Charter by Russia. By signing the Energy Charter, Russia of her own free will agreed to its conditions and requirements. Therefore, she must now keep the legal commitments she has undertaken. Pursuant to Energy Charter article 45(1), Russia is legally bound even if the treaty has not yet been ratified by her.

In case of possible cut-offs of gas supplies or threats of that kind, it provides a functioning mechanism of dispute settlement, which will be helpful in cases like Druzhba in Lithuania, for instance. Energy Charter is also a better opportunity than the NordStream for timely and well priced supply of gas into Europe. When it comes to the Baltic States, it reduces their dependency on Russia. Energy Charter also supports open energy markets, which in turn can be used for easing the hold the Gazprom monopoly has both in Russia and Europe. The energy relations on the Eastern direction currently lack rules and norms. Therefore, the EU must in no way back off from the Charter’s requirements nor water then down. It is in the best interests of the Baltic States themselves to take coordinated action in this field and to make joint comments. The stabilization of the political situation in Latvia would be a major factor in helping achieve that goal.