Europe wary of Russia in gas sector

WARSAW, Poland, April 9 (UPI) -- Eastern European countries expressed profound reservation over dealing with Russian energy firms amid political consternation, energy officials said.

"Some countries in Eastern Europe have an extreme level of political antagonism toward Russia," Lukoil Vice President Leonid Fedun said in an interview with the Financial Times, adding that investments with Poland would be "ridiculous."

Lukoil is the second-largest private oil company in the world in terms of proven hydrocarbon reserves.

The Times reports Lukoil has expressed interest in two refineries from the partially state-owned Polish energy company PKN Orlen, but Warsaw has stated its concern over Russian energy dominance in Eastern Europe, making the deal unlikely.

Meanwhile, Poland remains steadfast in its opposition to the Russian-backed Nord Stream pipeline to Germany. Nord Stream would bring natural gas from Russia through the Baltic Sea, but many of the littoral states worry over the potential environmental impact of the pipeline.

Russia's position in Eastern Europe is complicated further by the fallout from a January row with Ukraine that disrupted natural gas shipments to European customers for weeks.