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Tuesday 22 April 2014

Surrendering Morals for Natural Gas in the EU

With tensions between Russia and the West at stratospheric levels not seen for decades, many questions arise. One of the most pertinent from the perspective of EU countries is how to replace Russian energy supplies, primarily natural gas and oil. The main weapon that Russia wields against the EU is in the form of gas exports. The Baltic Countries (Estonia, Lithuania and Latvia) and Finland currently rely on Russia as the sole supplier of their natural gas. While not all EU countries are forced to receive 100% of their natural gas from Russia, for many nations Russia dominates as an energy supplier. Countries within the EU as disparate as Greece, Poland, Austria and Slovenia count on Russia to supply over half of their natural gas needs. Even economic powerhouse Germany is in the unfortunate quagmire of needing Russia to supply gas, while simultaneously condemning Russia’s strong-arm tactics in Ukraine.

So in an environment where Russia is seen as increasingly hostile, and has been known to turn off the gas before (to Ukraine in pipelines that continued on to Europe) the search for alternatives is quickening. The solution will largely be Turkmenistan. It is unlikely you have ever heard of this country or know its workings in any depth. Its relevancy for energy is huge however. It has the fourth largest proven natural gas reserves on Earth (two of the biggest are Russia and Iran both of which are problematic). It is already China’s largest gas supplier. In addition, Turkmenistan’s recently opened Galkynysh gas field is the second largest in the world, eclipsed only by the South Pars Field in the Persian Gulf. The EU has already made moves to embrace Turkmen gas. Last November the head of the EU Mission in Ashgabat (Turkmenistan’s capital) confirmed that among the myriad pipelines the Turkmen’s are building, the Trans-Caspian pipeline from Turkmenistan to the EU was being finalized. This is an integral part of the EU’s “Southern Corridor” plan to supplant Russian gas with gas from Central Asia (primarily Turkmenistan) the Caucuses and the Middle-East. In addition to an abundance of natural gas, Turkmenistan also has oil, the other resource which Russia controls over the EU. Oil has developed more slowly than natural gas largely because of maritime disputes with neighbouring Iran and Azerbaijan. Still, there is the potential for up to 700 Million barrels of recoverable reserves, in addition to the 200,000 barrels a day that Turkmenistan currently produces.

Those expecting little more than an analysis of a future EU energy supplier as part of a pivot away from Russia will be disappointed. While the President of the European Commission happily visited Turkmenistan to discuss energy imports while ignoring Turkmenistan’s totalitarian regime, this blog believes that moral obligations are not so easily ignored. Which leads into a brief explanation of life in Turkmenistan. It is one of the most repressive countries on Earth. Its former leader “Turkmenbashi” (Father of the Turkmen) maintained an intense cult of personality often compared to that of Kim Il-Sung. He had complete power and participated in frequent arbitrary policy changes, for example closing all hospitals and libraries outside the capital. His sudden death in 2006 led to absolute control being seized by Gurbanguly Berdimuhamedow. This gentleman’s unpronounceable name did not ameliorate the situation. Travel is tightly controlled, people are often arbitrarily forbidden from leaving the country. Independent media is non-existent and Turkmenistan is ranked 177th in the Press Freedom Index, only North Korea and Eritrea score worse. One person who had the gall to talk to Radio Free Europe (who are constantly harassed) woke up the next morning to a bloody sheep’s head. Internet access does not exist, only access to “Turkmenet” is available. This is a strictly controlled Government censored version of the internet, which can only be accessed at Government run computer stations after surrendering a passport. Even the UN is not allowed in, many UN officials have been waiting for visas that have been put on hold indefinitely. Relatively benign acts are often punished harshly. Two popular musicians who appeared on a Turkish talk show were sent to prison for 5 and 7 years for their music and being on international TV.


Admittedly resource rich economies are notorious for authoritarian regimes. No one will allege that oil from Saudi Arabia or Venezuela is coming from an especially free society. That being said, even in the company of resource rich states Turkmenistan still stands out as especially deplorable. The EU prides itself on conveying a strong sense of ethical standards. This is likely why it was banned from negotiating a partnership agreement with Turkmenistan since 1998, which has recently been reopened without any need for human rights improvements. This is all abetted by a public which is largely uninformed concerning Central Asia’s “Stans”. An increasingly pressing need to diversify energy imports away from Russia cannot result in the total disregard for the plight of millions of Turkmen. Unfortunately, dealing with an obscure country which can open up a natural gas bonanza makes ignoring human suffering so much easier.