EU leaders to press Putin on energy policy

EU: Today's summit will see hard bargaining with the Russian president, writes Jamie Smyth in Lahti

EU: Today's summit will see hard bargaining with the Russian president, writes Jamie Smyth in Lahti

EU leaders gather today in Finland for a one-day summit to promote a common European energy policy and discuss boosting innovation in the economy.

They will also meet Russian president Vladimir Putin, who is expected to outline his vision of Russia-EU relations amid increasing tension between the two powers over energy policy and human rights.

Mr Putin, who will dine with Europe's leaders, is unlikely to give any quarter in the face of mounting anger over his government's recent move to thwart EU firms investing in Russia's gas and oil infrastructure. He is also likely to rebut criticism of Russia's human rights record, regarding the murder of journalist Anna Politkovskaya and an ongoing campaign of harassment against ethnic Georgians living in Russia.

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"This is not a campaign against Georgians. It is a campaign against illegal activity and criminal groups," said Vladimir Chizhov, Moscow's ambassador in Brussels. "Perhaps this campaign should have begun long ago. That it hasn't is probably down to the natural tolerance of the Russian people."

Reports out of Russia suggest a targeted police campaign against Georgian businesses and citizens living in Russia. Hundreds of people have been deported in an escalating political dispute between the pro-western leadership in Tiblisi and Moscow. Russia has cut all links with Georgia and is widely accused of interference in Georgia's relationship with two breakaway regions in the state.

"It is a very weak country and has been since the collapse of the Soviet Union," said Mr Chizhov. "The current situation in Georgia indicates that there is no need for external destabilisation, rather we want to stabilise an already unstable country."

Russia's actions in Georgia, which were strongly criticised by EU foreign ministers this week, demonstrate the growing self-confidence of Mr Putin's administration, which has been buoyed by billions of dollars of oil money flowing into the exchequer.

"Russia has become more confident on the international stage with the rise in oil prices," says Daniel Gros, director of the Brussels think tank, the Centre for European Policy Studies. "You saw it on a macro level with the gas dispute with Ukraine earlier this year when they switched the gas supply off, but you also see it in a host of other smaller ways, even in Russian relations with China."

Europe relies on Russia for a quarter of its oil and gas supplies and Mr Putin's aggressive behaviour has alarmed diplomats, who fear he will use Russia's energy resources to force political and economic concessions. Last week's decision by Russia's state gas monopoly Gazprom to develop the huge Shtokman gas field without any foreign partners and Russia's clash with Royal Dutch Shell over development rights in Sakhalin have heightened tensions.

According to a commission paper that will form the basis of today's talks, the EU wants Russia to implement all elements of an existing energy charter signed in 1991 that would enable European firms to invest and own oil and gas infrastructure in Russia. It also wants Russia to give firm guarantees over energy supplies as part of a new wide- ranging partnership agreement to be negotiated over the next 12 months.

In return, Russia wants to buy EU energy distribution companies and gain access to European technology to enable it to develop its energy resources more efficiently. Mutual suspicion will make the negotiations tricky. Mr Chizhov notes the negative response of the British establishment to rumours that Gazprom was mulling a takeover of Centrica, the owner of British gas. "All hell broke loose," he said.

Today's meeting will be further complicated by divisions between some EU states.

The Baltic states, Poland and Ireland want a common external and internal EU energy policy, whereas some larger states want to keep more national control. EU leaders will meet for talks before the dinner with Mr Putin to try to forge a consensus on a common approach.

Finland - which is hosting the meeting as EU president - and the commission have both appealed to EU leaders to show a united front against Russia today.