Russian President Dmitry Medvedev will attend an EU-Russia summit in Stockholm on 17-18 November to discuss energy security and a new cooperation pact. The provision of energy security is very important to Moscow, especially following the Russian-Ukraine gas crisis in January. Alexander Berezikov, advisor to the Russian Duma Vice Speaker, told New Europe in an interview on the sidelines of an energy conference in Athens on 9 November that there is a big energy game going on between Brussels and Moscow.
Russia's recent decision to withdraw its signature from the Energy Charter Treaty complicated relations. Berezikov said Russia and the EU need a new world energy regulating system. “We need cooperation between the EU and Russia. We need common rules for investment from the EU to Russia from Russia to the EU. Let’s start these negotiations to create these common rules and start to do business,” he said.
Ninety percent of Russian energy exports are coming to the EU, Berezikov said. “Our main priority is still the EU. But if the EU says that it is going to decrease energy consumption up to 50 percent, doesn’t need Russia, needs other sources, of course Russia starts to think about other ways,” Berezikov said. Russia has enough gas reserves for the next 50 or 70 years, he said. “Our development of these reserves really depends on EU consumption. We need concrete numbers of European consumption because of long-term investments. We already delayed our development of Shtokman because, at the moment, we have no concrete numbers from the EU,” he said.

Alexander Berezikov, advisor to the Russian Duma Vice Speaker, Member of the Supervisory Board of the Russian Gas Society, Deputy Chairman of the Council of Experts and former Vice President of Russian-British joint venture TNK-BP spoke during a seminar at the Greek Foreign Ministry on energy and foreign policy in Athens on 9 November before the launch of the 3rd Energy Week  2009 organized by the Institute of Energy for South East Europe. In an interview with New Europe, Berezikov openly discussed EU-Russian energy relations including the hapless EU Energy Charter, competing oil and gas pipelines, gas reserves and offered his views on European and Russian energy politics.

Did Russia  double  the capacity of South Stream to 63 billion cubic meters in order to kill Nabucco?
There’s a big energy game now. Every part is playing an energy game. Forget about any announcements; look at the final, that’s the point.

Is Russia considering switching from Bulgaria to Serbia - making Serbia a hub for South Stream?
Yes, we’re thinking about it. But that’s a game, that’s just a commercial deal. We’re trying to find the right partner. No politics, just commercial.

Come on, if that’s no politics...
That’s commercial politics. During the conference one of the speakers said Russia is using energy weapons, gas weapons. What is that? That’s really bullshit. Russia gas is just an instrument of Russian policy, commercial policy. We need to just sell our gas as expensively as we can and we need sustainable deliveries, but the European Union also needs sustainable deliveries and normal prices. We’re dependent on each other.

So are you saying there’s no pressure from Russia on the EU and vice-versa?
Of course the parties press each other but that’s a game. Those are normal commercial negotiations. Both parties need an efficient agreement and I’m absolutely sure that the EU and Russia will conclude an efficient agreement. Let’s look at the EU Third Energy Package. We don’t like it but we can’t do anything. That’s a question for the EU, we understand that, but Russia has its own questions as well.

Well, you didn’t like the EU Energy Charter either...
No, that’s not true. We didn’t like some points of the Energy Charter - mainly the fact that China, India, the United States and Norway are out of the Energy Charter. The Energy Charter process started in 1994; at that point Russia had no power. The Energy Charter is mostly a document for consumers, but where are the producers?

After years of stalling, Russia has finally rejected the EU Energy Charter Treaty. So it’s back to the drawing board?
Russia said we need to start new discussion probably of changing the Energy Charter or find a new solution. But Russia needs a new world energy regulating system as the EU needs it.

Russia wants to buy assets in Europe, which creates panic: “The Russians are coming”... countries do not want to sell their assets...
Look, talking about European energy security the EU said: “Okay, we need to diversify our energy sources, not only Russia but Algeria, whatever.” But Russia needs the same. Russia needs to secure its energy customers. How can we do that? The only way is to buy some assets in Europe. EU companies like E.ON Ruhrgas already bought a few assets in Russia. That’s not only cooperation, that’s dependence on each other. If you depend on each other it means trust, it means no conflict; it means understanding each other. The panic is just bullshit.

France’s GDF wants to participate in Nord Stream and EDF is interested in South Stream. Maybe Gazprom hopes there will be some asset swapping with EU energy companies?
Why not? We need cooperation between the EU and Russia. We need common rules for investment from the EU to Russia from Russia to the EU. Let’s start these negotiations to create these common rules and start to do business.

Russia and the EU view diversification differently. For the EU diversification is different sources, pipelines that bypass Russia like Nabucco. When Moscow talks about diversification it means bypassing Ukraine...
Or turning to China... That’s a game. That’s a negotiation position.

So the EU remains the priority for Russia?
Ninety percent of Russian energy exports are coming to the EU. Of course our main priority is still the European Union. But if the EU says that it is going to decrease energy consumption up to 50 percent, doesn’t need Russia, needs other sources, of course Russia starts to think about other ways, other possibilities like the Russian Easter Gas Program.

Well, it seems that Russia is in a better negotiating position. On one side, you have 27 member states talking with 27 different voices and, on the other side you have Russia basically talking with the voice of (Russian Prime Minister Vladimir) Putin. Gazprom and the government are more coordinated. Russia has a more clear-set energy strategy?
We’re really looking forward to the Lisbon Treaty because for our discussion we don’t need a lot of partners. If we talk to EU executives, of course it will be much better for the Energy Charter and for energy security.

So far Russia is making bilateral deals with EU member states like Italy, Germany, France...
That’s bullshit again. Let’s create your Presidency; let’s create your Minister of Energy; we’ll talk to them... You talked about 27 countries all of which have their own energy policy. Of course Russia talks to individual countries. If the EU will have a few executives, a few negotiators, we will talk to them. The ball is on your side.

You do talk to EU Energy Commissioner (Andris) Piebalgs...
What is an energy commissioner? I’m talking about the power.

Probably after Lisbon...
(Laughs) Yeah, Russia really supports this process. Russia supports all processes which are generated by the EU. Some we don’t like, but we have no right to say no. The EU is our partner; of course we will work with the EU regardless from the situation there.

You are talking about cooperation. How about Russian efforts to buy all the gas from Azerbaijan or block supplies from Turkmenistan? Does Russia really need all that gas or they simply want to secure...
That’s a commercial game; that’s business. If you’re going to sell your product better, try to buy all resources around. Look at multinational companies; they do the same. That’s competition.

You said in your speech that it is  “absolutely bullshit”  that gas production is falling. However, EU consumption is falling so Gazprom may have no incentive to increase production...
You’re absolutely right. I said in my presentation that Russia has enough gas reserves for the next 50 or 70 years. Our development of these reserves really depends on EU consumption. We need concrete numbers of European consumption because of long-term investments. We already delayed our development of Shtokman because, at the moment, we have no concrete numbers from the EU. The EU is still thinking about it. Russia has enough reserves; the ball is on the European side.

But analysts say that if Russia does not invest now the when demand picks up you may have problems.
That’s true, talking about oil and gas.

That’s why Putin invited European firms to come to Yamal. Is there a change in Russian policy? Assets that were deemed strategic before are no longer...
Yes, talking about investment in Russian oil and gas industry. Russia is now changing the policy about strategic reserves. A few weeks ago Putin invited the strategic investors in Yamal and said: “Okay, we are now open.” Of course that is probably the result of crisis (laughs). But that is life.

Well, he hopes the EU will return the favor and sell some assets to Gazprom. Has the Duma its own voice affecting the Kremlin and the government or is the Kremlin pretty much dictating what is going on?
You know, I’m former vice president of TNK-BP, Russia-British joint venture. I left the company just a few months ago. Now I’m advisor to the vice speaker, why? Because the Russian Duma is a real part of the power in the state. Of course, there is a lot of bullshit in newspapers. But the Russian Duma really does this business within the state. The Russian Duma tries to create their own vision on the development, present the Duma position to the government and the president and try to explain their position. It means it is one of the power triangle points.

TNK-BP is still involved in the Kovykta gas field?
My title was vice president marketing, supply, trading and transportation of gas and gas condensate which means Kovykta was my responsibility.

Shell was forced to give up control of Sakhalin and TNK-BP in Kovykta...
That’s a game. Kovykta is a strategic reserve of the Russia Federation and it’s only the state’s responsibility to manage the situation in the region. The state can say which field can be explored first and which second. Of course, all businessmen in TNK and BP were hoping Kovykta would be explored first, but the state said: “No, second.” That’s the story.

All the pressure on TNK-BP was because of the Russian AAR shareholders. For a while it was under pressure from the Kremlin...
You know, I was inside for three-and-a-half years. That was a real commercial discussion between two groups of shareholders - BP and TNK. The first reason for the conflict was because Russian shareholders would like to go to Kazakhstan and develop the Russian business there, but BP has already some assets there and the result was conflict of interest between BP and the Russian shareholders. Then, war is war. La guerre comme la guerre!

Interview by Kostis Geropoulos