for Russian companies in the energy field Russian companies intending to buy energy assets in the EU countries will apparently soon face new difficulties and demands. According to a confidential draft paper of the European Commission that surfaced in the Western mass media, the European Union plans to adopt a set of measures aimed at restricting the access of foreign companies to the EU energy sector, first of all to natural gas and electricity distribution grids. One of the possible options for restrictive measures is a "reciprocity regulation" that will restrict access to the European Union for companies from countries such as Russia or Saudi Arabia where, as the European Commission believes, investment restrictions are in place for Western companies. Such proposals are in line with the European Commission's plans for stimulating competition on the European energy market, and are aimed at counteracting any anxiety as to the possible consequences of the market liberalisation. The European Commission is expected to reiterate its support of the "property downsizing" idea. It means that gas and electricity distribution grids will belong to other owners than generation companies and suppliers of energy resources. On the other hand, the opponents of the downsizing policy are represented by several major EU states, among them Germany, France and Italy - owners of large energy companies, as well as some European Parliament deputies who insist that the spin-off of distribution grids will make them vulnerable to takeovers by foreign companies. Another internal document of the European Commission devoted to the consequences of downsizing claims that the European Union "may suffer due to the strategy of third countries aimed at dominating the EU market not only in the field of supply, but also through the acquisition of grids". The document contains, inter alia, a direct warning against situations where "investments are driven not by economic reasons, but by other motives". In recent years Europe has repeatedly suggested that Russia or other countries rich in energy resources may gain domination in supplying Europe with these resources. In response to such fears the European Commission now offers several options for preventing uncontrolled access to the markets. The most liberal option suggests giving the European Commission the right to carefully study all potential buyers. The toughest proposal calls for announcing the EU energy sector a "strategic industry", thus putting up a barrier for investments coming from most countries - non-EU members. Energy market experts believe that the European Commission's attempts to restrict the right of non-European companies to make acquisitions in the energy sector are bound to arouse multiple discussions within the EU countries. One should not forget that large energy companies in countries like Germany, Italy, Great Britain and France have a long history of successful cooperation with Gazprom and jointly owned assets (including on their territories). |
