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FOI-R--3990--SE_reducerad

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<strong>FOI</strong>-R--<strong>3990</strong>--<strong>SE</strong><br />

The implementation of the TEP could make the Baltic gas market more resistant<br />

to possible Russian political pressure and discriminatory pricing policies.<br />

However, in contrast to their Lithuanian colleagues, Latvian politicians have<br />

been hesitant about implementing the TEP and argued that Latvia needs<br />

alternative gas supplies in place before it can deal with the infrastructure<br />

monopoly. The opinions of politicians go hand in hand with the call by Latvijas<br />

Gaze to postpone the resolution of the issue until there are realistic alternative<br />

gas supplies from other countries. Such an alternative to Russian gas could arise<br />

only after the opening of the Lithuanian-Polish gas pipeline or the construction of<br />

a liquefied natural gas terminal, about which the Baltic states and Finland<br />

currently cannot agree.<br />

The issue of gas market liberalization should, according to EU rules, be resolved<br />

by the government. Nonetheless, on 27 February 2013, the Economic,<br />

Agricultural, Environmental and Regional Policy Committee of the Saeima<br />

decided to move amendments to the Energy Law. The amendments proposed<br />

postponing gas market liberalization until the creation of efficient<br />

interconnections with third countries in addition to Estonia, Lithuania and<br />

Finland. From the discussions surrounding this decision, it was evident that not<br />

only traditional Russian supporters such as Harmony Centre, but also the prime<br />

minister’s party, Unity, favoured a slower pace for market liberalization.<br />

In the media, some argued that Harmony Centre might have struck an agreement<br />

with Unity, offering not to push for a referendum on the adoption of the euro.<br />

Janis Urbanovics of Harmony Centre denied that there was any kind of<br />

agreement between HC and Unity, claiming that the proposal for the suspension<br />

of gas market liberalization had no linkage with lifting Harmony Centre’s calls<br />

for a referendum on euro adoption. The web portal Pietiek.com wrote that several<br />

sources unofficially confirmed that the LG shareholder and gas supplier<br />

Gazprom had made certain offers in different formats. Gazprom was said to have<br />

offered Latvia a 20 per cent discount on gas supplies in exchange for assurances<br />

that Latvia would postpone gas market liberalization beyond 2014. 347 The media<br />

associated the ruling party’s stance on gas market liberalization issues with<br />

Prime Minister Valdis Dombrovskis meeting with Russian Prime Minister<br />

Dmitry Medvedev in April 2013. Dombrovskis, however, explained that until<br />

Latvia has alternative gas suppliers, the liberalization would exist “on paper”<br />

347<br />

See Margevica A. (2013): “Agreement with Gazprom and Dombrovskis-Medvedev meeting”,<br />

Pietiek.com,<br />

http://www.pietiek.com/raksti/no_vienosanas_ar__gazprom__atkariga_gan_gazes_cena,_gan_dombr<br />

ovska_un_medvedeva_iespejama_tiksanas.<br />

108

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