Friday, March 30, 2018

Let’s Help Bring Relief to Balkans from High Priced Russian Gas and Blackmail

RaufMammodov_2017.jpgAri-Mittleman.pngRauf Mammadov Resident Scholar on Energy Policy at the Middle East Institute
Ari Mittleman Publisher of BalkanInsider.com

 

The Balkans region of Europe has been forced to depend on Russian gas; by strengthening ties with the U.S. they hope to address this Russian meddling.

One year ago this week, the Senate voted 97-2 to admit Montenegro as the 29th member of NATO. Last week also marked 19 years since NATO planes bombed what was left of Yugoslavia.

The anniversary should serve as a reminder that the fledgling democracies of the six independent republics of the former Yugoslavia need sustained and innovative bipartisan attention from Washington, because they’re definitely getting attention from Moscow.

Our European allies have devoted considerable time and resources to the Balkans. To date, the European Bank for Reconstruction and Development has invested over $12.3 billion in the Balkans.

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Gazprom pipelines in Balkan countries like Serbia illustrate the region’s dependence on Russian natural gas. (AP Photo/ Marko Drobnjakovic)

As the most frigid winter in recent history concludes in the region, the Balkans continue to feature prominently in European energy security. Despite efforts to enhance the legislative framework and its poor pipeline infrastructure, the EU has failed to decrease its dependence on Russian natural gas supplies.

In fact, Gazprom supplied record amounts of gas to Europe the last two years, thanks to increased demand and declining production rates in the North Sea. The Russian budget is dependent on hydrocarbon exports, and the Kremlin is determined to protect the market share of Russian companies.

In an effort to further stabilize the region and promote cross-border coordination, the EU has invested in several infrastructure projects. Last year, the EU granted over $3 million to Montenegro and Albania to prepare a joint feasibility study for construction of a 317-mile pipeline.

The Ionian Adriatic Pipeline, or IAP, once complete, will connect to the existing Croatian gas transmission system. In Albania, plans are well underway for the Trans Adriatic Pipeline, or TAP. TAP links to the Southern Gas Corridor, a vital element of European energy security. This would be the only non-Russian sourced pipeline to Europe.

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Congress has devoted tremendous bipartisan efforts to LNG exports. However, the record volume of exported gas in 2017 was not a game changer in Europe, because only 13 percent of American LNG went there. Nevertheless, U.S. exports have allowed Balkan countries a small amount of leverage to renegotiate the price for Russian gas.

Even so, the dearth of infrastructure continues to be the major impediment to improve economic competitiveness. The IAP will not only increase the connectivity in the region, but will also contribute to the overall economic integration into the trans-Atlantic community.

This is not a new or partisan topic for Congress. After the annexation of Crimea, the Senate Subcommittee on European Affairs held a hearing exploring ways the United States can renew its focus on European energy security. Sens. Chris Murphy, D-Conn., and Ron Johnson, R-Wis., addressed “Russian meddling” before the term was a household phrase across Washington.

The combined population of Croatia, Montenegro, and Albania is less than metropolitan Washington, D.C. Yet their importance to Europe’s energy security cannot be ignored. Vice President Mike Pence took the time to visit the region last year and stated his intention “to strengthen the ties between the European community, the Western Balkans, and the United States of America.” Likewise, the Senate should not overlook this fragile region and this critical pipeline.

Rauf Mammadov is resident scholar on energy policy at the Middle East Institute. Ari Mittleman is publisher of BalkanInsider.com.

Reposted from the Washington Examiner by permission of the authors.

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