Table.Briefing: Europe

Dispute over visa ban + Bulgaria’s gas dilemma + Entry rules between Serbia and Kosovo

  • Foreign ministers argue about visa ban for Russians
  • Russian gas supplies: Bulgaria at a crossroads
  • Serbia and Kosovo settle dispute over entry rules
  • Gas storage targets reached earlier than expected
  • ECB officials call for decisive monetary policy
  • Consumer centers warn against more expensive online content
  • Gazprom Germania possibly facing nationalization
  • Katherina Reiche – guardian of the networks
Dear reader,

Summer break is over in Europe: In Brussels, EU institutions are resuming work this week, and important events are coming up in other European capitals as well.

Today, German Chancellor Olaf Scholz will give a keynote speech on European policy in Prague. He will speak about the significance that the “turning point in time” resulting from the Russian war of aggression holds for Europe for an hour in the Karolinum, the historic main building of Charles University. He will then meet Czech Prime Minister Petr Fiala, whose government has held the EU Council presidency since July 1.

Tomorrow and Wednesday, the EU foreign ministers will also travel to Prague for the bi-annual informal Gymnich meeting. An emotionally charged debate is emerging, as Eric Bonse reports in his Feature: Member states are divided over the issue of a visa ban on Russian citizens. A compromise could be the suspension of the visa agreement with Russia.

Also tomorrow, the German government will host Spanish Prime Minister Pedro Sánchez for a closed meeting at Schloss Meseberg. The main topic is likely to be energy supply: Sánchez and Scholz support the plan to build the MidCat gas pipeline, which will connect Spain and Portugal to Central Europe. France, however, has so far opposed the project.

In Bulgaria, the transitional government established at the beginning of August wants to resume negotiations with Russia on gas supplies. In his Feature, Hans-Peter Siebenhaar explains how the country could move closer to Russia again after the parliamentary elections scheduled to take place in early October at the latest.

Have a great week!

Your
Leonie Düngefeld
Image of Leonie  Düngefeld

Feature

Foreign ministers argue about visa ban for Russians

The summer break of the EU foreign ministers ends as it began: with a tug-of-war over Ukraine policy. The ongoing dispute over arms deliveries and sanctions has now been joined by a conflict over entry restrictions for Russian citizens. The emotionally charged debate is likely to dominate the informal Gymnich meeting in Prague on Tuesday and Wednesday.

Estonia, Latvia and Finland have already gone ahead – they have announced or already implemented entry bans. “Visiting Europe is a privilege, not a human right,” says Estonian Prime Minister Kaja Kallas. Finnish Prime Minister Sanna Marin calls it “unfair” that Russians can go on vacation in Europe “while Russia kills people in Ukraine”.

In contrast, Germany, Austria, Greece, and Cyprus are putting on the brakes. German Chancellor Olaf Scholz (SPD) warns against holding Russians collectively liable. The war in Ukraine is first and foremost “Putin’s war”, Scholz said. A general visa ban would also affect “completely innocent people” and not just war supporters. Moreover, such a ban would raise legal problems.

Russian tourists more likely to travel to Turkey

Austria is concerned about contacts with Russian civil society, which would be made more difficult by an entry ban. In Greece and Cyprus, on the other hand, concerns about economic disadvantages predominate – Russians accounted for around a quarter of tourists in Cyprus before the war. Currently, however, vacationers prefer Turkey, which has not joined the EU sanctions.

Russia has warned against a general visa ban. That would be “Nazi policy”, Defense Minister Sergei Shoigu said. “We are still observing a clear emergence of a Nazi policy today, when from the highest European tribunes the Russophobic idea of banning all Russian citizens from entering EU countries is being actively promoted.”

According to the speaker of the State Duma, Vyacheslav Volodin, a ban would cost the EU at least €21 billion. However, it is unclear what this estimate is based on. In general, there is a lack of reliable data in the debate. For example, it is not even clear how many Russian tourists have traveled to the EU since the beginning of the Russian invasion.

Entry ban disproportionate according to SWP study

According to the EU border agency Frontex, there were exactly 998,085 Russian citizens from the day of the invasion on February 24 to August 22. However, Frontex does not only count tourists. Moreover, one must distinguish between visas for the Schengen area and national entry permits. Schengen visas are only valid in 22 of the 27 EU countries, and they are also limited to 90 days.

In Germany, applications have so far only been rejected in rare exceptional cases. According to the Foreign Office, there must be weighty reasons for this – forged documents or “a threat to public order, internal security (…) or the international relations of one or more member states”. A blanket rejection has not been provided so far.

A comprehensive entry ban would be disproportionate, according to a recent study by the Stiftung Wissenschaft und Politik (SWP) in Berlin. However, the EU Visa Code offers sufficient starting points to significantly restrict tourist travel. For example, the EU could completely suspend the existing visa facilitation agreement with Russia, says SWP researcher Raphael Bossong.

No decision expected at Prague meeting

In addition, a convergent approach could be agreed upon regarding the issuance of individual short-term visas. A narrow interpretation of the travel conditions under EU Regulation 810/2009 could also lead to severe restrictions. For example, it could be argued that Russian tourists do not have access to Heian accounts or international credit cards due to applicable sanctions.

However, this would mean abandoning the main purpose of the sanctions agreed so far – to punish those responsible for the war – and massively expanding the circle of those affected. So far, entry bans have been imposed on 1,200 Russian decision-makers, with Putin leading the way. Does the EU now want to mess with all Russians and postulate collective guilt? This is the delicate core of the debate.

No decision is expected in Prague yet; after all, this is an informal meeting. High Representative of the Union for Foreign Affairs, Josep Borrell, said it was “not a good idea” to deny Russians entry indiscriminately. It is necessary to be “more selective” and also to think of the 300,000 Russians who have fled Russia, he said at a conference at the University of Santander.

German Foreign Minister Annalena Baerbock (Greens) signaled a willingness to compromise. The Chancellor’s Office and the Foreign Office agree “that we will find a solution together in Europe that brings everyone’s legitimate concerns and issues together,” Baerbock said on Friday. However, “140 million people in Russia should not be abandoned forever” and put in “clan custody”.

  • EU foreign policy
  • Ukraine
  • visa

Russian gas supplies: Bulgaria at a crossroads

Bulgaria is fighting for its political stability. The EU country will elect a new parliament at the beginning of October – for the fourth time since spring 2021. In June 2022, the liberal-social democratic coalition of Prime Minister Kiril Petkov broke apart after only half a year. President Rumen Radev then appointed a transitional government of experts at the beginning of August (Europe.Table reported).

The pro-Western government under Petkov stood firmly with the other member states, which supported far-reaching sanctions against Russia for its attack on Ukraine. It expelled some seventy Russian diplomats from the country. Sofia also refused to comply with Vladimir Putin’s demand that it pay for Russian gas supplies in rubles. Gazprom subsequently cut off Bulgaria’s gas supply in April, making it one of the first EU countries to do so.

This Moscow-critical course is now in question. Traditionally, Russia has had great influence in the country on the Black Sea. Moscow was considered a reliable friend, and Bulgaria also dependended on Gazprom’s supplies. The Russian state-owned company covered more than 90 percent of the country’s gas needs. The long-term contract with Gazprom expires at the end of 2022.

Close race expected

The relationship changed radically with the Russian invasion of Ukraine. In the meantime, however, pro-Russian forces have gained momentum in Bulgarian society, not least because of the sharp rise in energy and food prices. Observers expect an increase in votes for pro-Russian parties in the parliamentary elections in the fall. Polls currently suggest a neck-and-neck race between Petkov, a Harvard graduate with his party “We Continue the Change”, and his predecessor Boyko Borisov, head of the right-wing conservative GERB party.

The interim government appointed at the beginning of August by Russia-friendly President Radev under former Labor and Social Affairs Minister Galeb Donev is already initiating a departure from the previous course. It is endeavoring to ensure the security of energy and food supplies.

Energy Minister Rossen Hristov recently announced that he would also negotiate with Gazprom on resuming gas supplies to this end. “If necessary, negotiations with Gazprom will be resumed,” he said after a meeting of the Bulgarian task force on the energy crisis. The Russian supplier is an “absolutely valid option”.

Russia gas for domestic industry

Hristov is responding to fears in Bulgarian society about the next winter and is also receiving support from the business community: Bulgarian associations and trade unions are calling for possible gas supplies to be explored with Moscow to avert damage to the domestic industry. The energy minister accuses Petkov’s government of having damaged relations with Russia.

How long Bulgaria’s gas reserves will last is disputed. Currently, the country is also talking with Azerbaijan about additional gas supplies. Bulgaria currently receives around one billion cubic meters of gas from Azerbaijan. The annual demand is around three billion cubic meters.

Moscow already announced: From Russia’s point of view, no new contract is needed for the resumption of gas supplies. The Russian ambassador Eleonora Valentinovna Mitrofanova said that the gas would have to be paid for in rubles. Energy Minister Hristov, however, does not expect easy and quick results: “The talks will be very hard and very difficult.”

Fear of Moscow’s influence

On the European stage, Sofia faces a loss of face if Bulgaria agrees to this concession to Moscow. The country would drop out of solidarity within the EU. The damage to foreign policy would be a severe test for the new government.

In addition, the country faces a domestic political test. Since the expert government took office, there have been repeated protests. On Wednesday, supporters of the conservative-liberal party Democratic Bulgaria demonstrated in front of President Radev’s official residence against negotiations with Gazprom. The demonstrators fear that Moscow is regaining influence and fueling corruption in Bulgaria through its patronage networks.

  • bulgaria
  • Energy policy
  • Gazprom
  • Natural gas

News

Serbia and Kosovo settle dispute over entry rules

Balkan neighbors Serbia and Kosovo have settled their dispute over entry rules shortly before the end of a new deadline, according to EU High Representative for Foreign Affairs Josep Borrell. “We have a deal,” Borrell reported Saturday on the short message service Twitter, praising what he called a “European solution”. He said Serbia had agreed to allow holders of Kosovo identity documents to enter the country without further documents in the future. In return, Kosovo had dropped its plan to make it more difficult for Serbian citizens to enter the country. However, the dispute over the mutual recognition of license plates remains open, Borrell added.

The EU has been trying for years to help clarify the tense relationship between the two countries. Kosovo, now inhabited almost exclusively by Albanians, seceded from Serbia in 1999 with NATO assistance and declared independence in 2008. More than 100 countries, including Germany, recognized Kosovo’s independence. Others – including Russia, China and five EU countries – have not done so to date.

Handling of license plates not clarified

Government politicians from Serbia and Kosovo reacted cautiously to the agreement that has now been reached. Kosovo’s Prime Minister Albin Kurti praised the work of the EU and US mediators on Facebook and stressed the need for equality and reciprocity between neighboring states.

Serbia’s Prime Minister Ana Brnabić stressed that violence continues to threaten from Kosovo, especially since there is no agreement on how to deal with vehicle license plates. Serbia had to keep its police capacities ready. Therefore, the Europride planned for September 17 in Belgrade had to be canceled. Serbia is facing a “hellish time,” Brnabić said. Serbia’s government envoy for Kosovo, Petar Petković, stressed that the travel facilitation for Kosovars should not be interpreted as Serbia’s recognition of Kosovo’s independence. No reaction came initially from Serbia’s President Aleksandar Vučić.

Borrell thanked Vučić in particular for his concession. Serbia’s head of state had “shown a sense of responsibility and leadership,” Borrell said in a video address posted on Twitter. Additionally, the EU politician also acknowledged the contribution of US mediators. The US envoy to the Balkans and Deputy Secretary of State Gabriel Escobar was involved in the week-long talks. With regard to the continued lack of mutual recognition of license plates, Borrell called on both sides to be “pragmatic and constructive”.

New entry rules later than planned

The controversial entry rules for Serbs into Kosovo were to take effect on September 1. The Kosovar government’s goal was to treat Serbs crossing the border in the same way Serbia has treated Kosovars for years. Serbia has refused to recognize the declaration of independence of its former province of Kosovo for almost a decade and a half.

Under pressure from the US and the EU, however, the Kosovar plans were postponed for a month after Serbian nationalists set up barricades at the border crossings. In the process, shots were fired at Kosovar police officers. The international peacekeeping force KFOR stationed in Kosovo has recently increased its presence on the border with Serbia due to fears of new unrest.

The day before, Vučić had already canceled Europride, citing the dispute with Kosovo as the reason. Previously, radical right-wing organizations and representatives of the Serbian Orthodox Church had stirred up opposition to the event. Since 1992, Europride has been organized alternately in different European capitals; Serbia was to have been the first stop in southeastern Europe. On the part of the organizers, it was said that the procession would take place anyway, as the government had no right to ban it. dpa

  • Josep Borrell
  • kosovo
  • Serbia

Gas storage targets reached earlier than expected

Gas storage levels in Germany are rising faster than expected, so that the 85 percent target for October can probably be reached as early as the beginning of September, according to German Economic Affairs Minister Robert Habeck. Last Thursday morning, the fill level was 81.78 percent, according to data from European gas storage operators, and a further increase to 82.2 percent had been expected for Friday.

According to the July 29 ministerial order, which raised the minimum levels of the Gas Storage Act again, storage facilities must be 85 percent full by October 1 and 95 percent full by November 1. The regulation also sets an interim target of 75 percent, to be achieved by September 1. Despite significantly curtailed supply volumes from Russia, the fill level is now already approaching the October target, Habeck told Der Spiegel. This should be reached as early as the beginning of September, a spokesperson confirmed.

Supply stopped again due to Nord Stream 1 maintenance

According to the Ministry for Economic Affairs, the purchase of Russian gas has dropped significantly. In August, only nine and a half percent of gas consumption arrived via Russian pipelines, the spokesperson confirmed. Russia had most recently announced that it would interrupt gas deliveries via the Nord Stream 1 Baltic Sea pipeline for three days at the end of August. From August 31 to September 2, no gas would flow to Germany due to maintenance work. After that, 33 million cubic meters of natural gas should be delivered again daily. This corresponds to the 20 percent of the daily maximum output to which Russia had already reduced the supply a few weeks ago.

France is now to become the new source of supply. Until now, France has also purchased Russian gas via Germany. Additionally, the country imports large amounts of electricity from Germany because of numerous nuclear power plants that have been shut down. Most of this comes from gas-fired power plants that run specifically for France’s exports. But starting in the fall, at least the gas flow is now expected to reverse, according to the ministry. Liquefied natural gas terminals in France could also be used for German gas purchases and significantly ease the supply situation. leo/dpa

  • BMWK
  • Gas storage
  • Natural gas

ECB officials call for decisive monetary policy

The European Central Bank (ECB) must take forceful action against soaring inflation in the eurozone, in the view of ECB Director Isabel Schnabel. Both the likelihood and the cost of the current high inflation rate becoming entrenched in expectations are uncomfortably high, she said at a Federal Reserve symposium in Jackson Hole, Wyoming on Saturday. “In this environment, central banks need to act forcefully,” the German economist said. They need to act decisively against the danger that people will begin to doubt the long-term stability of their currencies.

“The longer inflation stays high, the greater the risk that the public will lose confidence in our resolve and ability to preserve purchasing power,” Schnabel said. If a central bank underestimates the persistence of inflation – which Schnabel said most central banks have done in the past year and a half – and is slow to change its monetary policy, the subsequent costs may be significant, she warned.

At its interest rate meeting in July, the ECB initiated the turnaround in interest rates, raising the key rates by a hefty 0.50 percentage points, in contrast to what had previously been promised. This was the first interest rate hike in eleven years. The key interest rate is now 0.50 percent.

Inflation reaches record level of 8.9 percent

Austrian economist Robert Holzmann, a member of the ECB’s Governing Council, called for a further significant tightening of monetary policy at the Jackson Hole meeting. A 0.5 percentage point rate hike is the minimum in his view, he told the Bloomberg news agency. But a 0.75 percentage point hike should also be discussed at the next ECB Governing Council meeting in September.

ECB Director Isabel Schnabel also warned of the danger of a perception taking root that a greater tolerance for high inflation rates had now taken hold at the central bank. In that case, a cautious approach to monetary policy would no longer be appropriate, she explained. “To regain and maintain confidence, we need to bring inflation back to target quickly.”

Inflation in the eurozone rose to a new record level of 8.9 percent in July. This means that inflation is now more than four times higher than the target set by the euro central bank, which is aiming for a rate of two percent in the medium term. Consumers have recently been rather pessimistic about the further development of inflation. In a survey conducted by the ECB in June, consumers had assumed that inflation would still be at 5.0 percent in twelve months’ time. leo/rtr/dpa

  • ECB
  • EZB
  • Monetary policy

Consumer centers warn against more expensive online content

Consumer associations have warned of a possible increase in the cost of streaming services and other online content. The background to this is the EU Commission’s plans for market participants to share in digital infrastructure costs.

“We were surprised that the EU Commission has announced its intention to take up the issue,” Ramona Pop, head of the Federation of German Consumer Organisations (vzbv), told the Deutsche Presse-Agentur. She recalled that it was already an older proposal by telecommunications providers to charge a kind of Internet toll. “In addition to the costs that you have, yes, as an end user and consumer, now the content providers, such as Netflix and Amazon, should also pay,” Pop said. “That completely calls into question net neutrality, and it would certainly make offers more expensive as well.” Some offerings, she estimated, would disappear from the market altogether because they could no longer sustain themselves.

The EU Commission had announced concrete plans for all market participants to share in network infrastructure costs. Pop said: “We expect the EU Commission to hold a public hearing as soon as possible so that we can discuss the matter with all the parties involved. Pop rejected existing proposals as possibly damaging to competition. dpa

  • Consumer protection
  • Digital policy

Gazprom Germania possibly facing nationalization

According to an advance report in the German newspaper Welt am Sonntag, the German government has set up a holding company to carry out the nationalization of the German subsidiary of Russian state-owned Gazprom at short notice. The former Gazprom Germania, which has since been renamed Securing Energy for Europe GmbH (SEFE), has so far been under trusteeship of the Federal Network Agency.

According to the preliminary report, an existing shelf company was renamed “Securing Energy for Europe Holding GmbH SEEHG” in June. It is responsible for investments and is intended to ensure security of supply in the energy sector, the paper quotes from the shareholders’ agreement available to it. The preliminary report further states that two lawyers from the law firm CMS Hasche Sigle are the managing directors. CMS Hasche Sigle declined to comment on the report, citing confidentiality obligations. The German Ministry for Economic Affairs said it was aware of the holding company and that its establishment was a precautionary measure for any restructuring measures. rtr

  • Gazprom

Heads

Katherina Reiche – guardian of the networks

Katherina Reiche, Chairwoman of the Executive Board Westenergie AG and Chairwoman of the National Hydrogen Council.

2020 was a significant year for Katherina Reiche. Not only did she take up her post as CEO at the Essen-based energy service and infrastructure provider Westenergie. The 25 members of the National Hydrogen Council, newly convened by the German government, also elected her to the top position.

A heavy workload for Reiche (49), but the graduate chemist brings a lot of experience with networks, networking, and leadership. From 1998 to 2015, Reiche worked for the CDU in federal politics, including as Parliamentary State Secretary at the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, then at the Federal Ministry of Transport and Digital Infrastructure.

Then in 2015, her seamless move from politics to business, or more precisely to the board of the Association of Municipal Enterprises, was not without controversy, just before the waiting period for politicians was passed. At Westenergie, Reiche is now responsible for a seamlessly functioning electricity, gas, water and broadband network to the furthest corners of North Rhine-Westphalia, Rhineland-Palatinate and Lower Saxony.

Plenty crisis experience

The 174,000 kilometers of the power grid are under particular scrutiny because not only consumers are connected to it, but also solar, wind and biomass plants that feed electricity into it. And it is not only energy networks that Reiche weaves. At the Fempower Academy she founded, Reiche, herself a mother of three, prepares women in the company for management positions and offers them networking opportunities.

Reiche has all kinds of crisis experience in her work: the Covid pandemic, the flood in the Ahr Valley, the Ukraine war and the resulting gas crisis. Add to that the interrupted or restricted supply chains and the tensions between the West and China. All of this makes the urgently needed development and expansion of resilient networks more difficult. After all, to make networks more resilient, they need to be given digital components.

“If, as in the Ahr Valley, the entire infrastructure fails – electricity, water, gas, telecommunications, Internet, cold chains, gas stations, simply everything – then I have to start rebuilding everything at some point,” Reiche explains. “To do this, we install 450-megahertz radio technology, for example, which allows us to transmit machine data quickly and over long distances. For example, we can restart a power plant from the outside.”

Smart meters in every household

In its strategy, the previous German government already stipulated that Germany must become independent of China, explains Reiche. The technology used is now no longer considered solely in terms of price but also in terms of cyber security, espionage and resilience against potential attacks, and where possible, components from Europe are selected.

But to get a picture of the situation in the first place, we need more digital network components, so-called digital local network stations, to monitor the network via control centers. Even better: smart meters in every household to be able to determine precisely where the infrastructure is damaged or has disappeared altogether. Reiche would like to see more speed and consistency from the German government in this area.

However, the government is moving ahead with hydrogen. The National Hydrogen Council, which Reiche chairs, has been working intensively since 2020 on how hydrogen can be procured in sufficient quantities and distributed to the necessary locations. Here, Eon subsidiary Westenergie is testing in several projects how entire cities can be supplied with hydrogen instead of natural gas in a climate-neutral way in the future to reduce dependence on fossil fuels from abroad. Lisa-Martina Klein

  • Energy
  • Hydrogen

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • Foreign ministers argue about visa ban for Russians
    • Russian gas supplies: Bulgaria at a crossroads
    • Serbia and Kosovo settle dispute over entry rules
    • Gas storage targets reached earlier than expected
    • ECB officials call for decisive monetary policy
    • Consumer centers warn against more expensive online content
    • Gazprom Germania possibly facing nationalization
    • Katherina Reiche – guardian of the networks
    Dear reader,

    Summer break is over in Europe: In Brussels, EU institutions are resuming work this week, and important events are coming up in other European capitals as well.

    Today, German Chancellor Olaf Scholz will give a keynote speech on European policy in Prague. He will speak about the significance that the “turning point in time” resulting from the Russian war of aggression holds for Europe for an hour in the Karolinum, the historic main building of Charles University. He will then meet Czech Prime Minister Petr Fiala, whose government has held the EU Council presidency since July 1.

    Tomorrow and Wednesday, the EU foreign ministers will also travel to Prague for the bi-annual informal Gymnich meeting. An emotionally charged debate is emerging, as Eric Bonse reports in his Feature: Member states are divided over the issue of a visa ban on Russian citizens. A compromise could be the suspension of the visa agreement with Russia.

    Also tomorrow, the German government will host Spanish Prime Minister Pedro Sánchez for a closed meeting at Schloss Meseberg. The main topic is likely to be energy supply: Sánchez and Scholz support the plan to build the MidCat gas pipeline, which will connect Spain and Portugal to Central Europe. France, however, has so far opposed the project.

    In Bulgaria, the transitional government established at the beginning of August wants to resume negotiations with Russia on gas supplies. In his Feature, Hans-Peter Siebenhaar explains how the country could move closer to Russia again after the parliamentary elections scheduled to take place in early October at the latest.

    Have a great week!

    Your
    Leonie Düngefeld
    Image of Leonie  Düngefeld

    Feature

    Foreign ministers argue about visa ban for Russians

    The summer break of the EU foreign ministers ends as it began: with a tug-of-war over Ukraine policy. The ongoing dispute over arms deliveries and sanctions has now been joined by a conflict over entry restrictions for Russian citizens. The emotionally charged debate is likely to dominate the informal Gymnich meeting in Prague on Tuesday and Wednesday.

    Estonia, Latvia and Finland have already gone ahead – they have announced or already implemented entry bans. “Visiting Europe is a privilege, not a human right,” says Estonian Prime Minister Kaja Kallas. Finnish Prime Minister Sanna Marin calls it “unfair” that Russians can go on vacation in Europe “while Russia kills people in Ukraine”.

    In contrast, Germany, Austria, Greece, and Cyprus are putting on the brakes. German Chancellor Olaf Scholz (SPD) warns against holding Russians collectively liable. The war in Ukraine is first and foremost “Putin’s war”, Scholz said. A general visa ban would also affect “completely innocent people” and not just war supporters. Moreover, such a ban would raise legal problems.

    Russian tourists more likely to travel to Turkey

    Austria is concerned about contacts with Russian civil society, which would be made more difficult by an entry ban. In Greece and Cyprus, on the other hand, concerns about economic disadvantages predominate – Russians accounted for around a quarter of tourists in Cyprus before the war. Currently, however, vacationers prefer Turkey, which has not joined the EU sanctions.

    Russia has warned against a general visa ban. That would be “Nazi policy”, Defense Minister Sergei Shoigu said. “We are still observing a clear emergence of a Nazi policy today, when from the highest European tribunes the Russophobic idea of banning all Russian citizens from entering EU countries is being actively promoted.”

    According to the speaker of the State Duma, Vyacheslav Volodin, a ban would cost the EU at least €21 billion. However, it is unclear what this estimate is based on. In general, there is a lack of reliable data in the debate. For example, it is not even clear how many Russian tourists have traveled to the EU since the beginning of the Russian invasion.

    Entry ban disproportionate according to SWP study

    According to the EU border agency Frontex, there were exactly 998,085 Russian citizens from the day of the invasion on February 24 to August 22. However, Frontex does not only count tourists. Moreover, one must distinguish between visas for the Schengen area and national entry permits. Schengen visas are only valid in 22 of the 27 EU countries, and they are also limited to 90 days.

    In Germany, applications have so far only been rejected in rare exceptional cases. According to the Foreign Office, there must be weighty reasons for this – forged documents or “a threat to public order, internal security (…) or the international relations of one or more member states”. A blanket rejection has not been provided so far.

    A comprehensive entry ban would be disproportionate, according to a recent study by the Stiftung Wissenschaft und Politik (SWP) in Berlin. However, the EU Visa Code offers sufficient starting points to significantly restrict tourist travel. For example, the EU could completely suspend the existing visa facilitation agreement with Russia, says SWP researcher Raphael Bossong.

    No decision expected at Prague meeting

    In addition, a convergent approach could be agreed upon regarding the issuance of individual short-term visas. A narrow interpretation of the travel conditions under EU Regulation 810/2009 could also lead to severe restrictions. For example, it could be argued that Russian tourists do not have access to Heian accounts or international credit cards due to applicable sanctions.

    However, this would mean abandoning the main purpose of the sanctions agreed so far – to punish those responsible for the war – and massively expanding the circle of those affected. So far, entry bans have been imposed on 1,200 Russian decision-makers, with Putin leading the way. Does the EU now want to mess with all Russians and postulate collective guilt? This is the delicate core of the debate.

    No decision is expected in Prague yet; after all, this is an informal meeting. High Representative of the Union for Foreign Affairs, Josep Borrell, said it was “not a good idea” to deny Russians entry indiscriminately. It is necessary to be “more selective” and also to think of the 300,000 Russians who have fled Russia, he said at a conference at the University of Santander.

    German Foreign Minister Annalena Baerbock (Greens) signaled a willingness to compromise. The Chancellor’s Office and the Foreign Office agree “that we will find a solution together in Europe that brings everyone’s legitimate concerns and issues together,” Baerbock said on Friday. However, “140 million people in Russia should not be abandoned forever” and put in “clan custody”.

    • EU foreign policy
    • Ukraine
    • visa

    Russian gas supplies: Bulgaria at a crossroads

    Bulgaria is fighting for its political stability. The EU country will elect a new parliament at the beginning of October – for the fourth time since spring 2021. In June 2022, the liberal-social democratic coalition of Prime Minister Kiril Petkov broke apart after only half a year. President Rumen Radev then appointed a transitional government of experts at the beginning of August (Europe.Table reported).

    The pro-Western government under Petkov stood firmly with the other member states, which supported far-reaching sanctions against Russia for its attack on Ukraine. It expelled some seventy Russian diplomats from the country. Sofia also refused to comply with Vladimir Putin’s demand that it pay for Russian gas supplies in rubles. Gazprom subsequently cut off Bulgaria’s gas supply in April, making it one of the first EU countries to do so.

    This Moscow-critical course is now in question. Traditionally, Russia has had great influence in the country on the Black Sea. Moscow was considered a reliable friend, and Bulgaria also dependended on Gazprom’s supplies. The Russian state-owned company covered more than 90 percent of the country’s gas needs. The long-term contract with Gazprom expires at the end of 2022.

    Close race expected

    The relationship changed radically with the Russian invasion of Ukraine. In the meantime, however, pro-Russian forces have gained momentum in Bulgarian society, not least because of the sharp rise in energy and food prices. Observers expect an increase in votes for pro-Russian parties in the parliamentary elections in the fall. Polls currently suggest a neck-and-neck race between Petkov, a Harvard graduate with his party “We Continue the Change”, and his predecessor Boyko Borisov, head of the right-wing conservative GERB party.

    The interim government appointed at the beginning of August by Russia-friendly President Radev under former Labor and Social Affairs Minister Galeb Donev is already initiating a departure from the previous course. It is endeavoring to ensure the security of energy and food supplies.

    Energy Minister Rossen Hristov recently announced that he would also negotiate with Gazprom on resuming gas supplies to this end. “If necessary, negotiations with Gazprom will be resumed,” he said after a meeting of the Bulgarian task force on the energy crisis. The Russian supplier is an “absolutely valid option”.

    Russia gas for domestic industry

    Hristov is responding to fears in Bulgarian society about the next winter and is also receiving support from the business community: Bulgarian associations and trade unions are calling for possible gas supplies to be explored with Moscow to avert damage to the domestic industry. The energy minister accuses Petkov’s government of having damaged relations with Russia.

    How long Bulgaria’s gas reserves will last is disputed. Currently, the country is also talking with Azerbaijan about additional gas supplies. Bulgaria currently receives around one billion cubic meters of gas from Azerbaijan. The annual demand is around three billion cubic meters.

    Moscow already announced: From Russia’s point of view, no new contract is needed for the resumption of gas supplies. The Russian ambassador Eleonora Valentinovna Mitrofanova said that the gas would have to be paid for in rubles. Energy Minister Hristov, however, does not expect easy and quick results: “The talks will be very hard and very difficult.”

    Fear of Moscow’s influence

    On the European stage, Sofia faces a loss of face if Bulgaria agrees to this concession to Moscow. The country would drop out of solidarity within the EU. The damage to foreign policy would be a severe test for the new government.

    In addition, the country faces a domestic political test. Since the expert government took office, there have been repeated protests. On Wednesday, supporters of the conservative-liberal party Democratic Bulgaria demonstrated in front of President Radev’s official residence against negotiations with Gazprom. The demonstrators fear that Moscow is regaining influence and fueling corruption in Bulgaria through its patronage networks.

    • bulgaria
    • Energy policy
    • Gazprom
    • Natural gas

    News

    Serbia and Kosovo settle dispute over entry rules

    Balkan neighbors Serbia and Kosovo have settled their dispute over entry rules shortly before the end of a new deadline, according to EU High Representative for Foreign Affairs Josep Borrell. “We have a deal,” Borrell reported Saturday on the short message service Twitter, praising what he called a “European solution”. He said Serbia had agreed to allow holders of Kosovo identity documents to enter the country without further documents in the future. In return, Kosovo had dropped its plan to make it more difficult for Serbian citizens to enter the country. However, the dispute over the mutual recognition of license plates remains open, Borrell added.

    The EU has been trying for years to help clarify the tense relationship between the two countries. Kosovo, now inhabited almost exclusively by Albanians, seceded from Serbia in 1999 with NATO assistance and declared independence in 2008. More than 100 countries, including Germany, recognized Kosovo’s independence. Others – including Russia, China and five EU countries – have not done so to date.

    Handling of license plates not clarified

    Government politicians from Serbia and Kosovo reacted cautiously to the agreement that has now been reached. Kosovo’s Prime Minister Albin Kurti praised the work of the EU and US mediators on Facebook and stressed the need for equality and reciprocity between neighboring states.

    Serbia’s Prime Minister Ana Brnabić stressed that violence continues to threaten from Kosovo, especially since there is no agreement on how to deal with vehicle license plates. Serbia had to keep its police capacities ready. Therefore, the Europride planned for September 17 in Belgrade had to be canceled. Serbia is facing a “hellish time,” Brnabić said. Serbia’s government envoy for Kosovo, Petar Petković, stressed that the travel facilitation for Kosovars should not be interpreted as Serbia’s recognition of Kosovo’s independence. No reaction came initially from Serbia’s President Aleksandar Vučić.

    Borrell thanked Vučić in particular for his concession. Serbia’s head of state had “shown a sense of responsibility and leadership,” Borrell said in a video address posted on Twitter. Additionally, the EU politician also acknowledged the contribution of US mediators. The US envoy to the Balkans and Deputy Secretary of State Gabriel Escobar was involved in the week-long talks. With regard to the continued lack of mutual recognition of license plates, Borrell called on both sides to be “pragmatic and constructive”.

    New entry rules later than planned

    The controversial entry rules for Serbs into Kosovo were to take effect on September 1. The Kosovar government’s goal was to treat Serbs crossing the border in the same way Serbia has treated Kosovars for years. Serbia has refused to recognize the declaration of independence of its former province of Kosovo for almost a decade and a half.

    Under pressure from the US and the EU, however, the Kosovar plans were postponed for a month after Serbian nationalists set up barricades at the border crossings. In the process, shots were fired at Kosovar police officers. The international peacekeeping force KFOR stationed in Kosovo has recently increased its presence on the border with Serbia due to fears of new unrest.

    The day before, Vučić had already canceled Europride, citing the dispute with Kosovo as the reason. Previously, radical right-wing organizations and representatives of the Serbian Orthodox Church had stirred up opposition to the event. Since 1992, Europride has been organized alternately in different European capitals; Serbia was to have been the first stop in southeastern Europe. On the part of the organizers, it was said that the procession would take place anyway, as the government had no right to ban it. dpa

    • Josep Borrell
    • kosovo
    • Serbia

    Gas storage targets reached earlier than expected

    Gas storage levels in Germany are rising faster than expected, so that the 85 percent target for October can probably be reached as early as the beginning of September, according to German Economic Affairs Minister Robert Habeck. Last Thursday morning, the fill level was 81.78 percent, according to data from European gas storage operators, and a further increase to 82.2 percent had been expected for Friday.

    According to the July 29 ministerial order, which raised the minimum levels of the Gas Storage Act again, storage facilities must be 85 percent full by October 1 and 95 percent full by November 1. The regulation also sets an interim target of 75 percent, to be achieved by September 1. Despite significantly curtailed supply volumes from Russia, the fill level is now already approaching the October target, Habeck told Der Spiegel. This should be reached as early as the beginning of September, a spokesperson confirmed.

    Supply stopped again due to Nord Stream 1 maintenance

    According to the Ministry for Economic Affairs, the purchase of Russian gas has dropped significantly. In August, only nine and a half percent of gas consumption arrived via Russian pipelines, the spokesperson confirmed. Russia had most recently announced that it would interrupt gas deliveries via the Nord Stream 1 Baltic Sea pipeline for three days at the end of August. From August 31 to September 2, no gas would flow to Germany due to maintenance work. After that, 33 million cubic meters of natural gas should be delivered again daily. This corresponds to the 20 percent of the daily maximum output to which Russia had already reduced the supply a few weeks ago.

    France is now to become the new source of supply. Until now, France has also purchased Russian gas via Germany. Additionally, the country imports large amounts of electricity from Germany because of numerous nuclear power plants that have been shut down. Most of this comes from gas-fired power plants that run specifically for France’s exports. But starting in the fall, at least the gas flow is now expected to reverse, according to the ministry. Liquefied natural gas terminals in France could also be used for German gas purchases and significantly ease the supply situation. leo/dpa

    • BMWK
    • Gas storage
    • Natural gas

    ECB officials call for decisive monetary policy

    The European Central Bank (ECB) must take forceful action against soaring inflation in the eurozone, in the view of ECB Director Isabel Schnabel. Both the likelihood and the cost of the current high inflation rate becoming entrenched in expectations are uncomfortably high, she said at a Federal Reserve symposium in Jackson Hole, Wyoming on Saturday. “In this environment, central banks need to act forcefully,” the German economist said. They need to act decisively against the danger that people will begin to doubt the long-term stability of their currencies.

    “The longer inflation stays high, the greater the risk that the public will lose confidence in our resolve and ability to preserve purchasing power,” Schnabel said. If a central bank underestimates the persistence of inflation – which Schnabel said most central banks have done in the past year and a half – and is slow to change its monetary policy, the subsequent costs may be significant, she warned.

    At its interest rate meeting in July, the ECB initiated the turnaround in interest rates, raising the key rates by a hefty 0.50 percentage points, in contrast to what had previously been promised. This was the first interest rate hike in eleven years. The key interest rate is now 0.50 percent.

    Inflation reaches record level of 8.9 percent

    Austrian economist Robert Holzmann, a member of the ECB’s Governing Council, called for a further significant tightening of monetary policy at the Jackson Hole meeting. A 0.5 percentage point rate hike is the minimum in his view, he told the Bloomberg news agency. But a 0.75 percentage point hike should also be discussed at the next ECB Governing Council meeting in September.

    ECB Director Isabel Schnabel also warned of the danger of a perception taking root that a greater tolerance for high inflation rates had now taken hold at the central bank. In that case, a cautious approach to monetary policy would no longer be appropriate, she explained. “To regain and maintain confidence, we need to bring inflation back to target quickly.”

    Inflation in the eurozone rose to a new record level of 8.9 percent in July. This means that inflation is now more than four times higher than the target set by the euro central bank, which is aiming for a rate of two percent in the medium term. Consumers have recently been rather pessimistic about the further development of inflation. In a survey conducted by the ECB in June, consumers had assumed that inflation would still be at 5.0 percent in twelve months’ time. leo/rtr/dpa

    • ECB
    • EZB
    • Monetary policy

    Consumer centers warn against more expensive online content

    Consumer associations have warned of a possible increase in the cost of streaming services and other online content. The background to this is the EU Commission’s plans for market participants to share in digital infrastructure costs.

    “We were surprised that the EU Commission has announced its intention to take up the issue,” Ramona Pop, head of the Federation of German Consumer Organisations (vzbv), told the Deutsche Presse-Agentur. She recalled that it was already an older proposal by telecommunications providers to charge a kind of Internet toll. “In addition to the costs that you have, yes, as an end user and consumer, now the content providers, such as Netflix and Amazon, should also pay,” Pop said. “That completely calls into question net neutrality, and it would certainly make offers more expensive as well.” Some offerings, she estimated, would disappear from the market altogether because they could no longer sustain themselves.

    The EU Commission had announced concrete plans for all market participants to share in network infrastructure costs. Pop said: “We expect the EU Commission to hold a public hearing as soon as possible so that we can discuss the matter with all the parties involved. Pop rejected existing proposals as possibly damaging to competition. dpa

    • Consumer protection
    • Digital policy

    Gazprom Germania possibly facing nationalization

    According to an advance report in the German newspaper Welt am Sonntag, the German government has set up a holding company to carry out the nationalization of the German subsidiary of Russian state-owned Gazprom at short notice. The former Gazprom Germania, which has since been renamed Securing Energy for Europe GmbH (SEFE), has so far been under trusteeship of the Federal Network Agency.

    According to the preliminary report, an existing shelf company was renamed “Securing Energy for Europe Holding GmbH SEEHG” in June. It is responsible for investments and is intended to ensure security of supply in the energy sector, the paper quotes from the shareholders’ agreement available to it. The preliminary report further states that two lawyers from the law firm CMS Hasche Sigle are the managing directors. CMS Hasche Sigle declined to comment on the report, citing confidentiality obligations. The German Ministry for Economic Affairs said it was aware of the holding company and that its establishment was a precautionary measure for any restructuring measures. rtr

    • Gazprom

    Heads

    Katherina Reiche – guardian of the networks

    Katherina Reiche, Chairwoman of the Executive Board Westenergie AG and Chairwoman of the National Hydrogen Council.

    2020 was a significant year for Katherina Reiche. Not only did she take up her post as CEO at the Essen-based energy service and infrastructure provider Westenergie. The 25 members of the National Hydrogen Council, newly convened by the German government, also elected her to the top position.

    A heavy workload for Reiche (49), but the graduate chemist brings a lot of experience with networks, networking, and leadership. From 1998 to 2015, Reiche worked for the CDU in federal politics, including as Parliamentary State Secretary at the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, then at the Federal Ministry of Transport and Digital Infrastructure.

    Then in 2015, her seamless move from politics to business, or more precisely to the board of the Association of Municipal Enterprises, was not without controversy, just before the waiting period for politicians was passed. At Westenergie, Reiche is now responsible for a seamlessly functioning electricity, gas, water and broadband network to the furthest corners of North Rhine-Westphalia, Rhineland-Palatinate and Lower Saxony.

    Plenty crisis experience

    The 174,000 kilometers of the power grid are under particular scrutiny because not only consumers are connected to it, but also solar, wind and biomass plants that feed electricity into it. And it is not only energy networks that Reiche weaves. At the Fempower Academy she founded, Reiche, herself a mother of three, prepares women in the company for management positions and offers them networking opportunities.

    Reiche has all kinds of crisis experience in her work: the Covid pandemic, the flood in the Ahr Valley, the Ukraine war and the resulting gas crisis. Add to that the interrupted or restricted supply chains and the tensions between the West and China. All of this makes the urgently needed development and expansion of resilient networks more difficult. After all, to make networks more resilient, they need to be given digital components.

    “If, as in the Ahr Valley, the entire infrastructure fails – electricity, water, gas, telecommunications, Internet, cold chains, gas stations, simply everything – then I have to start rebuilding everything at some point,” Reiche explains. “To do this, we install 450-megahertz radio technology, for example, which allows us to transmit machine data quickly and over long distances. For example, we can restart a power plant from the outside.”

    Smart meters in every household

    In its strategy, the previous German government already stipulated that Germany must become independent of China, explains Reiche. The technology used is now no longer considered solely in terms of price but also in terms of cyber security, espionage and resilience against potential attacks, and where possible, components from Europe are selected.

    But to get a picture of the situation in the first place, we need more digital network components, so-called digital local network stations, to monitor the network via control centers. Even better: smart meters in every household to be able to determine precisely where the infrastructure is damaged or has disappeared altogether. Reiche would like to see more speed and consistency from the German government in this area.

    However, the government is moving ahead with hydrogen. The National Hydrogen Council, which Reiche chairs, has been working intensively since 2020 on how hydrogen can be procured in sufficient quantities and distributed to the necessary locations. Here, Eon subsidiary Westenergie is testing in several projects how entire cities can be supplied with hydrogen instead of natural gas in a climate-neutral way in the future to reduce dependence on fossil fuels from abroad. Lisa-Martina Klein

    • Energy
    • Hydrogen

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