U.S. revamp plan to break Russian energy supply monopoly in Europe (Jul 2, 2007)

Jul 2, 2007 (Romania Report)

The U.S. Deputy Assistant Secretary of State Matthew J. Bryza openly denounced Gazprom’s monopolist plans in the South-Eastern Europe at a Security Summit of the Council of North Atlantic Partnership in Ohrid, Former Yugoslav Rep. of Macedonia on Friday, June 29.

Mr. Bryza reiterated that “United States have a strategic interest in achieving a South corridor” for the Caspian oil and gas pipelines towards central Europe, Romanian daily ‘Gardianul’ reports. On the long run U.S also intend to connect Iraq the projected corridor.

Mr. Brysa’s statement was meant to represent a reaction to the Russian recent ambitions to expand influence in the Balkans.

“The Nabucco Project is a solution for diversifying resources supply,” The U.S. diplomat said.

During his speech, Mr. Brysa slammed Russia’s monopolist ambitions both from an economic and a strategic point of view. The major issue is that EU is to become more and more reliant on gas imports. To date, 40 percent of the EU’s gas supply is Russian, and estimations show that by 2030 it will go up to 60 percent.

Brysa said that Gazprom concentrates its attention on the Caucasian states and neglects the investments in order to upgrade the existing pipelines. Therefore, by 2010, these pipelines might create major operational risks. In addition, the company’s price policy leads to a dysfunctional market environment. Gazprom is importing natural gas at $100 per 1,000 cubic meters and sells at $230-285. “Gazprom is a monopoly and it is set to perform an anti-market behaviour,” Bryza said. Here the strategic issue emerges, as the over-tax is not transparently distributed.

The U.S. diplomat opined that such issues cannot be solved by “confronting” Russia but by free competition. “United States have a strategic interest in achieving a South corridor,” Bryza said with a reference to the South Caspian pipeline to Europe – to be accomplished without Russia’s interference. Last year, the gas pipeline Baku–Tbilisi–Erzurum was opened, close to the Baku-Ceyhan oil pipeline.

“We have to go beyond Baku-Ceyhan,” Bryza said and showed a map with the projected 2020 pipelines in the region.



***

Matthew J. Bryza assumed his duties as Deputy Assistant Secretary of State for European and Eurasian Affairs in June 2005. In this capacity, he is responsible for policy oversight and management of relations with countries in the Caucasus and Southern Europe. He also leads U.S. efforts to advance peaceful settlements of the separatist conflicts of Abkhazia and South Ossetia in Georgia, and works with our Special Negotiator for Eurasian Conflicts to advance a settlement to the Nagorno-Karabakh conflict. Additionally, Mr. Bryza coordinates U.S. energy policy in the regions surrounding the Black and Caspian Seas. He also works with European countries on issues of tolerance, social integration, and Islam.

In April 2001, Mr. Bryza joined the National Security Council as Director for Europe and Eurasia, with responsibility for coordinating U.S. policy on Turkey, Greece, Cyprus, the Caucasus, Central Asia, and Caspian energy.

Mr. Bryza served as the deputy to the Special Advisor to the President and Secretary of State on Caspian Basin Energy Diplomacy from July 1998 to March 2001. In this capacity, Mr. Bryza coordinated the U.S. Government’s inter-agency effort to develop a network of oil and gas pipelines in the Caspian region.

During 1997-1998, Mr. Bryza was special advisor to Ambassador Richard Morningstar, coordinating U.S. Government assistance programs on economic reform in the Caucasus and Central Asia.

Mr. Bryza served at the U.S. Embassy in Moscow during 1995-1997, first as special assistant to Ambassador Thomas Pickering, then as a political officer covering the Russian Duma, the Communist Party, and the Republic of Dagestan in the North Caucasus.

He worked on European and Russian affairs at the State Department during 1991-1995.

Mr. Bryza served in Poland in 1989-1991 at the U.S. Consulate in Poznan and the U.S. Embassy in Warsaw, where he covered the "Solidarity" movement, reform of Poland’s security services, and regional politics.

He joined the United States Foreign Service in August, 1988.

Mr. Bryza graduated from Stanford University with a bachelor’s degree in international relations. He received his master’s degree in the same field from the Fletcher School of Law and Diplomacy. He is fluent in Russian and Polish, and also speaks German and Spanish.



Romania Report