23..4.2009, Turkmenistán, Ašchabád
Reliable transit of energy and its role in ensuring sustainable development and international cooperation
statement by Alexandr Vondra
Deputy Prime Minister for European Affairs of the Czech Republic
Ashgabat, 23 April 2009
[Honourable Mr. President (bude-li odpoledne přítomen)], Your Excellencies, ladies and gentlemen,
First of all, let me express my gratitude for being allowed to participate in this much needed conference, the keyword of which is cooperation. Accessibility of energy resources is a precondition for the prosperity of any economy. And only prospering economies enable businesses to invest abroad and thus deepen international cooperation. Long before the gas crisis reminded us of the urgency of the matter, the Czech Presidency of the Council of the European Union had placed energy cooperation in the spotlight of its agenda. Let me briefly outline some of our thoughts on this issue.
Today more than ever, we are aware that for cooperation in the field of energy to be successful, it must be mutually beneficial for all players involved – producers, transit countries as well as consumers.
With some simplification we might say that on one side of the energy chain, there are developed countries, who lack energy resources. On the other side, there are countries rich in raw materials, who strive for internal modernisation and development. It is evident that these two groups have much to offer each other. Thanks to genuine co-operation in the domain of energy, producers and transit countries will gain access to the know-how and modern technologies of consumer countries.
This know-how is related to prospecting, production of energy and – last but not least – to energy savings. One example for all: associated gas is now being burnt during oil extraction, instead of being economically utilised. The resources of our planet are not unlimited and their efficient use is a common, global interest. Energy should therefore be uniting, not dividing us.
The Czech EU Presidency is persuaded that the basic precondition for successful international cooperation in the field of energy is a functioning energy market, based on efficient cooperation between producers, transit countries and consumers. Market principles ensure a much needed transparency and non-discriminatory environment and foster mutual trust between all actors involved. Provided that the participating states perceive energy first of all as business, it is the market that will ensure the maximisation of their profits.
A market environment can only be reached via diversification of resources and transport routes. Diversification will – in the end – provide an advantage for all. For consumers, it will ensure alternative ways of procuring and transporting energy, which will increase their energy security. For producers, alternative markets mean a possibility to sell their products for full world prices.
The Czech Presidency is fully aware that the EU must start moving from words to acts in the field of energy cooperation. We have therefore been gathering political support for establishing the Southern Corridor, which we perceive as a concept of gradual economic, political and social rapprochement of the countries of the European Union, the Southern Caucasus, Central Asia and possibly the Middle East. It is enhanced energy cooperation that should set off this process, based on the above-mentioned principles of mutual benefits, transparency and non-discriminatory market-based solutions. Moving forward with energy infrastructure projects will act as a catalyst for further cooperation in other areas, such as improved exchange of know-how and transport infrastructure, which in turn will lead to intensification of people-to-people contacts and further economic cooperation.
The EU needs to start implementing once approved policies and projects as soon as possible. The aim of the Southern Corridor Summit, which will take place under the auspices of the Czech EU Presidency in Prague on May 8, is to send out a clear signal, that the EU has passed from the stage of general statements to the stage of realisation. It should define commitments in terms of clear scheduling for the completion and functioning of concrete projects that we have been discussing – to give just one of many examples, we should commit ourselves to conclude the feasibility study on the Caspian Development Corporation by the end of 2009. In brief, at the Prague summit, we would like to reach an agreement on very concrete steps leading to the elimination of the main commercial and non-commercial barriers hindering the realisation of these projects.
Ladies and gentlemen, we are living in a new global age, in which interdependency is a must. The Czech EU Presidency is doing its best to draw practical policy conclusions from this axiom.