EU move blocks Russian gas projects

MOSCOW, May 23 (UPI) -- Officials with Russia's gas firm Gazprom said Friday a decision by the European Union to embrace a supranational energy agency could affect pipeline projects.

The EU Industry Committee said this week it would back a move to create a multinational Agency for the Cooperation of Energy to oversee energy operations in Europe while at the same time restricting third-party access to their markets, the Russian newspaper Kommersant reported.

Gazprom officials said the decision may force gas suppliers to re-examine their investment options for gas pipeline projects based in Europe.

"Should the new regulations hinder implementation of investment projects, big suppliers may revise their investments in the infrastructural projects," said Gazprom's Stanislav Tsygankov.

The decision would have a negative impact on the Russian Yamal-Europe pipeline with Germany and Poland as well as the future of the North Stream and South Stream projects.

"The aftereffects from the market changes will be unpredictable," said Tsygankov.

Chairman of the State Duma Committee on Energy Valery Yazev said Russia would look to other markets in Asia if the EU continued along the protectionist line.

"The Europeans are mistaken when they think that we will tolerate it. More and more often, national gas monopolies tend to eye the growing energy demands of Asia, India and Japan. Our country will always find a sales market," Yazev said.