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Strategic Goals and Objectives of EAEU in Energy Field explained by EEC Minister Tair Mansurov

Strategic Goals and Objectives of EAEU in Energy Field explained by EEC Minister Tair Mansurov

11/17/2015

On November 17, Moscow hosted the International Forum and Exhibition "Exploration, Production, Processing 2015", where Tair Mansurov, the Member of the Board – Minister in charge of Energy and Infrastructure of the EEC, delivered a speech on the development of the Eurasian integration in the energy sector and the formation of common markets for electricity, gas, oil and petroleum products of the Eurasian Economic Union (EAEU).

The International Forum and Exhibition organized by the Institute for Energy and Finance and supported by the Ministry of Energy of the Russian Federation was attended by leaders and experts of international energy organizations, national energy ministries, research institutes and major energy companies. 

Speaking at the plenary session of the International Congress "Transformation of the Energy Markets and Russia’s Role in the Global Energy Balance" held within the framework of the Forum, Tair Mansurov recalled that the heads of state of Russia, Kazakhstan and Belarus have signed the Treaty on the EAEU on May 29, 2014. In 2015, it was joined by Armenia and Kyrgyzstan. EAEU has massive reserves of primary energy resources and possesses a powerful fuel and energy complex. The EEC Minister stressed: "In today’s world, the availability of energy resources, volumes of their production and foreign trade are among the main factors of geopolitics. There is growing competition between the major world powers for the exploitation of energy resources, export and transport via new routes". 

According to Tair Mansurov, the EAEU strategic objectives in the sphere of energy are the creation of the unified energy space across the Union and implementation of coordinated energy policy. The following tasks shall be fulfilled to do so: gradual creation of a competitive energy market common for EAEU; ensuring non-discriminatory access to the systems of transportation of energy resources; development and launch of mechanisms to ensure coordinated energy policy; removing barriers of mutual access to the energy markets of the Union member states.

Using sophisticated communication infrastructure with a common technological basis as the common markets are being established allows for effective development of economically feasible energy ties with regard to the modern technological requirements and the available demand.

The EEC Minister summarized the results of work carried out in 2015 aiming to introduce common markets of energy resources. The concept of establishing common electric power market of the Union has been adopted by heads of states on May 8. In addition, the relevant program to be adopted before July 1, 2016 is now being developed. In October, the EEC Council at the level of the First Deputy Prime ministers agreed on a calculation methodology for indicative (forecast) balances of gas, oil and petroleum products within the EAEU. The Draft Concept to Establish Common Market of Gas and Common market of Oil and Petroleum Products is now almost completed. According to the Treaty on the EAEU, the common electric power market will start by July 1, 2019, while the common markets for gas, oil and petroleum products are about to begin by January 1, 2025.

Tair Mansurov stressed out that the EAEU in their work is largely based on the EU expertise, since energy issues have been one of the key factors of the European Union predecessors: in 1951 – the European Coal and Steel Community, in 1957 – the European Economic Community and the European Atomic Energy Council. The EEC Minister said: "We examine and analyse the positive and negative experience of the EU in the energy field with great attention, including the plans of the European Commission on creating the European Energy Union. This is due to the fact that we are focused on practical cooperation with the EU on conditions of the mutually beneficial cooperation".

Power sector requires increasingly complex technologies, and every year gas and oil are becoming more knowledge-intensive goods. Innovations and their effect increase exponentially. Diversification of energy sources is expected to move towards renewable and alternative energy sources. Tair Mansurov concluded: "Therefore, the strategic goal for the EAEU Member States is the most efficient use of various energy resources and maximum satisfaction of the growing demand for various energy sources and power units".