German Minister Criticizes Russian Oil Sanctions Against Czech Republic

Text of report by right-of-centre German newspaper Die Welt website on 16 July

[Unattributed report: "The EU Does Not Appreciate Such Behaviour; Minister Glos in Moscow Sharply Criticizes Oil Sanctions Against Prague"]

Moscow – Economics Minister Michael Glos (CSU [Christian Social Union]) has called on Russia to stop cutting off oil supplies to the Czech Republic. “I have made it clear that it is unacceptable to respond to alleged misconduct in foreign policy with economic sanctions. We do not appreciate such behaviour in the EU,” Glos said in Moscow yesterday. However, he does not believe that Russia has cut off supplies to the Czech Republic for malicious reasons, he said. It could also be a “normal business procedure.”

Last week [ 7-11 July], Russia considerably reduced its oil deliveries to the Czech Republic without prior notice. A few days earlier, the Czech Republic had signed an agreement with the United States on the establishment of a radar station, which is part of the planned US missile defence shield. In the past, Russia had already cut off oil and gas deliveries to Ukraine and Belarus in order to exert political pressure. The Czech Republic is the first EU member that has delivery problems with Russia. Moscow mentions technical difficulties as reasons and denies that this has anything to do with the Czech decision about the radar station.

In Moscow, Glos met, among others, with the energy minister, the economics minister, and the industry minister. Previously, he had visited German companies in the region of Nizhniy Novgorod, some 400 kilometres east of Moscow. In view of the current debate in Germany over rising oil and gas prices, the issue of energy security was the main topic of the talks. A more efficient use of gas and oil reserves was also discussed. The Russians complained about the loss of 100 billion cubic meters of gas within Russia every year because of leaks in pipelines and poorly insulated old buildings. This is about the quantity of Germany’s annual consumption.

Moreover, during his visit, Glos tried to dispel Russia’s doubts about a planned change of the foreign trade law. “I have made it clear that we are still interested in Russian investments.” The planned regulations to defend against foreign state-owned investments in German key industries are not directed against Russia, Glos said. “I hope it will never be necessary to apply the law.” The Federal Government wants to examine participations of foreign, extra-EU investors who want to acquire more than 25 per cent of shares in a company. However, this only applies if “the public order or security is jeopardized,” Glos said, referring to the very specific legal definition of this term. The Federal Government decides on the approval of such participations upon proposal of the economics minister. This was preceded by many months of controversy over the limits to be set to investments by foreign state-owned funds.

On the sidelines of his visit, Glos called on the German industry to commit itself more strongly to Iraq. “The country is now planning the privatization of state-owned companies. I want to encourage the Germans to take part,” he said. As first government member to visit Iraq since 2003, Glos had paid a flying visit to the country on Saturday. “The security situation has considerably improved. Iraq is interested, above all, in technological cooperation with Germany. German manufacturers enjoy a very good reputation in Iraq.” Iraqi Prime Minister Nouri al-Maliki is expected to visit Berlin next week. Glos: “The ground has been prepared for him.”

Originally published by Die Welt website, Berlin, in German 16 Jul 08.

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