Dutch Concern Over German-Russian Energy Deals a Boon for Central Europe
Teaser:
Dutch Parliament members have demanded an inquiry into the possible effects of a German-Russian energy deal that could give Gazprom control of six Dutch power plants.
Analysis:
Members of the Dutch ParliamentCAN WE WORK IN THE NAME OF THE PARTY HERE, OTHERWISE EUGENE WILL HAVE A HISSY FIT AGAIN have demanded thatEconomic Affairs Minister Maxime Verhagen conduct a close inquiry into the economic and strategic implications of a potential deal between German energy firm RWE and state-owned Russian firm Gazprom that could give Gazprom control over six Dutch power plants.The German utility giant and Gazprom are currently negotiating the sale of Essent NV, the Netherlands' largest energy company, as well as other joint ventures in the United Kingdom, Belgium and Luxembourg. The request for the inquiry follows several instances of Russian gas companies striking deals to acquire assets from German utility providers, particularly those with operations in Central Europe LINK.
The parliament members who demanded the investigation are members of the Christian Democratic Appeal (CDA) party, the junior member of the current ruling coalition in the Netherlands. The legislators asked Verhagen, who is also the leader of the CDA party, to discern whether the potential RWE-Gazprom deal wouldgive Russia control of Essent's six generating plants and whether the current Dutch legal framework is sufficient to prevent a direct intervention from Moscow in the plants' operations.
This investigation echoes the growing discomfort in Central Europe over Russian companies' current campaign of acquiring assets from German utility providers.LINKBesides the Gazprom-RWE deal, in recent days Energie Baden Wurttemberg offered Novatek, Russia’s largest independent natural gas company, control of up to a quarter of Verbundnetz Gas, Germany’s third-largest natural gas importing company and a major energy player in Slovakia and the Czech Republic.
The Dutch parliamentarians' move is beneficial for Central Europe, which sees the recent Russian-German energy deals as Moscow's strategy to expand its influence in the region. The Netherlands is a particularly good ally for Central European countries, as it holds a great deal of influence in the European UnionLINK. The Hague is very sensitive to disturbances in the balance of interests in its neighborhood and, if it considers German-Russian deals a threat to the current regional equilibrium, will not hesitate to use its position to denounce (and impede) such deals at the EU level. The Netherlands' conclusions on the issue will be a major factor in determining the European Union's position regarding the Gazprom-RWE deal in particular and German-Russian energy cooperation in general. It is not yet clear which side the Netherlands will take, but it is an early sign that the Moscow-Berlin rapprochement is encountering opposition from major Western European countries. This will be a boon for Central Europe, since opposing Germany's position without any Western European allies will be difficult.