United States alarmed by Greek energy alliance with Russia
The Telegraph reported that the US is scrambling to head off a Greek pipeline deal with Russia, fearing a disastrous change in the strategic balance of the Eastern Mediterranean as Greece’s radical-Left government drifts into the Kremlin’s orbit.
Mr Ernest Moniz, the US Energy Secretary, said that his country is pushing for an alternative gas pipeline from Azerbaijan that would help break the stranglehold that Russian state-controlled firm Gazprom has on European markets.
He said a group of reporters on the margins of CERAWeek oil and gas forum in Houston that “Diversified supplies are important and we strongly support the ‘Southern Corridor’ to bring Caspian gas to Europe.”
He insisted that it was vital to uphold 'collective energy security' in Europe.
Mr Nikos Kotzias, foreign minister of Greece, said that Gazprom made a very good offer, with guaranteed gas supplies for 10 years at good prices. He asked how his Syriza government could justify turning down such an opportunity unless the Western powers could come up with something better.
The once-unlikely 'Turkish Stream' deal with Russia has suddenly become a stark reality as President Vladimir Putin seizes an opportunity created by the eurozone’s inept handling of the Greek crisis. Under the terms of the offer, Russia would supply 47 billion cubic metres of gas to Greece, generate much-needed revenue for the Greek authorities, create 2,000 jobs and turn the country into an energy hub.
Sources in Athens have confirmed to The Telegraph that it could also bring EUR 3 billion to EUR 5 billion in advance payments, greatly alleviating Syriza’s budget strain as it raids local authority funds in a last, desperate attempt to put off default.
The eurozone has agreed to cut its demand for a primary budget surplus in Greece to 1.5% of GDP this year
The deal was due to be signed on Tuesday but overtures from Washington caused a delay, much to the irritation of the Russians. The talks were complicated by Greek complaints over Gazprom’s tough line on 'take-or-pay' violations by the Greek natural gas company DEPA, whereby it was required to pay for unused gas.
It is now clear that Greece is playing every possible card in an escalating form of 4 way brinkmanship, in this case trying to play off Washington against Moscow.
This is a high-risk strategy as it risks irritating Syriza’s increasingly exasperated friends in the White House, all the more so as tensions between Russia and the West flare up again over Ukraine. It also risks pushing Moscow too far.
Mr Kotzias said after a trip to Washington this week that the US is preparing a counter-offer and will send an emergency mission to Athens in coming days, led by the State Department’s energy troubleshooter, Amos Hochstein.
Mr Alexis Tsipras, Greek premier met Mr Alexey Miller, CEO of Gazprom, in Athens earlier this week but few details have emerged. The discussions have a deliberate air of mystery, seemingly intended to keep everybody off balance.
The deal is being handled by Mr Panagiotis Lafazanis, head of Syriza’s Left Platform. He said that “Cooperation between Greece and Russia is of major importance for us. The pipeline issue is among our top priorities. We continue talks and hope that very soon we will reach an agreement that will benefit our country, the economy and people.”
There is no longer any chance of a breakthrough in European Monetary Union debt talks with Greece at this Friday’s meeting of finance ministers in Riga, Latvia. However, the eurozone has at least agreed to cut its demand for a primary budget surplus to 1.5% of GDP this year. This was Syriza’s original demand, but has itself become onerous as the country spirals back into recession.
Mr Tsipras said Ms Angela Merkel, German Chancellor, that Greece had already done enough and called for an interim release of EMU funds for the rest of April.
Source : THE TELEGRAPH