Cikku
25thMay2006, 18:07
EU Trade Deficit Widens with Russia Due to Energy
by Anne Jolis, Dow Jones Newswires FWN Select Wednesday, May 24, 2006
BRUSSELS, May 24, 2006 (Dow Jones Commodities News Select via Comtex)
Fueled by oil and gas imports, the European Union's trade deficit has more than tripled since 1999, rising to EUR50.3 billion last year, statistics published by Eurostat Wednesday show.
The deficit data comes a day before E.U. leaders meet Thursday with Russian
President Vladimir Putin at a summit which looks set to underline differences over energy.
Energy has made Russia the E.U.'s third most important trading partner after the U.S. and China. Europe's dependence on Russian energy was highlighted this past winter, when Moscow cut gas supplies to Ukraine, which curtailed deliveries to the E.U.
According to the Eurostat figures, energy accounted for more than two-thirds of Russia's exports to the E.U. by value, or EUR70.6 billion last year, up from EUR17.6 billion in 1999. Russia is the largest single supplier of natural gas to the E.U., providing one-quarter of Europe's gas. It is also the second-biggest source of E.U. oil.
Europe is selling more to an expanding Russia. Its exports grew to EUR56.4 billion from EUR16.6 billion on Russian demand for European machinery and vehicles.
Russia's largest trading partner is Germany, which exported EUR17.2 billion to Russia in 2005. Italy came next, exporting EUR6.1 billion.
Germany and Italy were also Russia's largest importers in 2005, with Russia exporting EUR20.7 billion to Germany and EUR11.8 billion to Italy. These two countries traditionally have been the most friendly to Russia. Germany has angered its neighbor Poland by agreeing to build a new gas pipeline under the Baltic Sea, which would avoid passing through Poland.
At the Thursday and Friday summit, the E.U. wants Russia to provide safeguards for foreign investors and allow access to Russian energy infrastructure, including gas pipelines.
As energy prices continue to soar, Russian President Vladimir Putin has resisted any action that would lessen state-run OAO Gazprom's (GASPBEX.RS) monopoly over energy exports.
(C) 2006 FWN Select. All Rights Reserved
by Anne Jolis, Dow Jones Newswires FWN Select Wednesday, May 24, 2006
BRUSSELS, May 24, 2006 (Dow Jones Commodities News Select via Comtex)
Fueled by oil and gas imports, the European Union's trade deficit has more than tripled since 1999, rising to EUR50.3 billion last year, statistics published by Eurostat Wednesday show.
The deficit data comes a day before E.U. leaders meet Thursday with Russian
President Vladimir Putin at a summit which looks set to underline differences over energy.
Energy has made Russia the E.U.'s third most important trading partner after the U.S. and China. Europe's dependence on Russian energy was highlighted this past winter, when Moscow cut gas supplies to Ukraine, which curtailed deliveries to the E.U.
According to the Eurostat figures, energy accounted for more than two-thirds of Russia's exports to the E.U. by value, or EUR70.6 billion last year, up from EUR17.6 billion in 1999. Russia is the largest single supplier of natural gas to the E.U., providing one-quarter of Europe's gas. It is also the second-biggest source of E.U. oil.
Europe is selling more to an expanding Russia. Its exports grew to EUR56.4 billion from EUR16.6 billion on Russian demand for European machinery and vehicles.
Russia's largest trading partner is Germany, which exported EUR17.2 billion to Russia in 2005. Italy came next, exporting EUR6.1 billion.
Germany and Italy were also Russia's largest importers in 2005, with Russia exporting EUR20.7 billion to Germany and EUR11.8 billion to Italy. These two countries traditionally have been the most friendly to Russia. Germany has angered its neighbor Poland by agreeing to build a new gas pipeline under the Baltic Sea, which would avoid passing through Poland.
At the Thursday and Friday summit, the E.U. wants Russia to provide safeguards for foreign investors and allow access to Russian energy infrastructure, including gas pipelines.
As energy prices continue to soar, Russian President Vladimir Putin has resisted any action that would lessen state-run OAO Gazprom's (GASPBEX.RS) monopoly over energy exports.
(C) 2006 FWN Select. All Rights Reserved