EU worried over Russian energy

BRUSSELS, Oct. 23 (UPI) -- An internal European Union paper expresses fear that an energy crunch in the region could harm diplomatic relations with Russia, an analysis shows.

A 33-page paper titled "Key Outstanding Issues for the EU in Its Relations with Russia," obtained by the EUobserver Web site, says political developments in Ukraine are a concern to the region.

"Disputes on terms of gas trade with Ukraine this year and developments in the investment climate of Russia's energy sector are a cause of growing concern," the EU report said.

A price dispute between energy giant Gazprom and Ukraine over natural gas prices prompted Russia to cut exports to the country in January 2006.

Relations between Russia and Ukraine are tumultuous. Russian Prime Minister Vladimir Putin accused Ukraine of supplying Georgia with weapons in the wake of an August conflict there as the Ukrainian government oscillates between pro-Western and pro-Russian stances. Officials from both countries, however, held recent talks on defensive cooperation.

Meanwhile, Europe said it was concerned about the "limited Russian investment" in oil and gas infrastructure, with EU countries forecasting a 3.5 trillion cubic feet shortfall in gas supplies by 2010 if natural gas fields sit idle.