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MAIN FEATURES OF THE WIDER BLACK SEA AREA

MAIN FEATURES OF THE WIDER BLACK SEA AREA. Natural bridge between energy deficit/consuming region and energy rich/producing regions Provides access to new alternative sources of energy

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MAIN FEATURES OF THE WIDER BLACK SEA AREA

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  1. MAIN FEATURES OF THE WIDER BLACK SEA AREA • Natural bridge between energy deficit/consuming region and energy rich/producing regions • Provides access to new alternative sources of energy • For over a decade – largest energy infrastructure development area (over 20 new projects realised, under implementation or in projection) • Emerging as important pillar of energy security for wider Europe • Becomes theater of fierce competition for control over sources of supply and transport routes • Existing conflicts and political tensions impede comprehensive cooperation in energy Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  2. WHAT IS ENERGY SECURITY AS SEEN BY BSEC COUNTRIES • Security of supply • Diversification of supply • Security of demand (for natural gas) • Security of transit (“transit monopolism”) • Security of physical infrastructure • External energy dependency (source: ICBSS Regional Energy Survey based on the information provided by Member States. Paper will be discussed at the meeting of the BSEC Working Group on energy to be held on 19-20 November 2008) Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  3. WAYS TO ENHANCE ENERGY SECURITYas suggested by BSEC countries • Multiple approaches to attaining energy security are most welcome and should be enhanced • “Rules of the game” – converged on the role of the Energy Charter process and Energy Charter Treaty, Energy Community Treaty, EU acquis should be applied; • Importance of interconnections and developing new transit pipelines; • Strict commitment to and observation of contractual obligations • Diversification of energy supply and transport identified as the most important issue for majority of BSEC Member States (source: ICBSS Regional Energy Survey based on the information provided by Member States. Paper will be discussed at the meeting of the BSEC Working Group on energy to be held on 19-20 November 2008) Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  4. CHALLENGES • To develop a comprehensive formula for energy security for the Wider Black Sea area • To shape the Wider Black Sea area of growing geo-strategic importance as stable, cohesive region • To develop multilateral mechanisms of cooperation in the field • BSEC can potentially serve that purpose Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  5. ORGANISATION OF THE BLACK SEA ECONOMIC COOPERATION (BSEC) • Established in 1992 with the objective to promote peace, stability and sustainable development through means of economic cooperation • Evolved into full-fledged regional organisation in 1999 with: • Permanent International Secretariat (PERMIS) • Parliamentary Assembly (PABSEC) • Business Council (BSEC BC) • Black Sea Trade & Development Bank (BSTDB) • International Centre of Black Sea Studies (ICBSS) Member states: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russian Federation, Serbia, Turkey, Ukraine Observers/partners: Austria, Belarus, Croatia, Germany, France, Egypt, Israel, Italy, Poland, Slovakia, Tunisia, USA, UK, EC, Energy Charter Secretariat Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  6. MAIN ORGANS AND INSTRUMENTS OF BSEC • Council of Ministers of Foreign Affairs • Chairman-in-Office • Committee of Senior Officials • Permanent International Secretariat (PERMIS) • Working groups / Ad hoc groups • Country-coordinator • BSEC Project Development Fund Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  7. INSTRUMENTS & MECHANISMS OF COOPERATION IN ENERGY • Working Group (WG) on Energy (since 1994) • Ad hoc WG of Experts on Electrical Networks (AHWGEEN) (established in 1998) • Ad hoc WG on Exploration of Hydrocarbon Reserves in the Black Sea (established in 2007) • Each WG has ToR, Country-Coordinator, Plan of Action (2 years) • Project Development Fund, BSTDB Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  8. GUIDING POLITICAL DOCUMENTS ON COOPERATION IN ENERGY • Baku Declaration, 2003 • Alexandroupolis Declaration, 2005 • Sochi Statement, 2006 • Kyiv Declaration, 2008 Amongst others the followingOBJECTIVES set by Declarations(excerpts): • “Creation of a regionally integrated energy market for electricity and natural gas networks in the context of the European markets, based on European acquis; • Establishment of compatible energy action plans aiming at improving and interconnecting electricity, oil and gas networks and linking them to TENs; • Work towards further diversification of oil and gas export routes from the Caspian and Black Sea regions to the European and international markets; • Develop initiatives ensuring the physical safety and security of transport and energy supply networks.” Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  9. ISTANBUL SUMMIT DECLARATION15 June 2007(excerpts) • To adopt BSEC to a world of rapid change in order to assume new responsibilities, while deepening cooperation in the priority areas of common interest such as …energy…; • To develop new legally binding instruments in energy; • To deepen cooperation in the area of energy with due regard to interests of energy producing, consuming and transit countries and cooperate with the EU and other international partners in order to ensure fair access to energy resources and markets on a mutual basis for all interested countries to enhance global energy security… Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  10. BSEC-EU RELATIONSHIP • EU expansion brings imminent implications with profound consequences for cooperation in the framework of the BSEC • Different levels of engagement of BSEC Member States with the EU • BSEC priority is to develop regional framework of cooperation with the EU • Black Sea Synergy – a New Regional Cooperation Initiative (11/04/2007) is an opportunity • New platform of BSEC-EU cooperation is being elaborated Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  11. BLACK SEA SYNERGY INITIATIVE(excerpts) • “The Black Sea region is a production and transmission area of strategic importance for EU energy supply security. …It is therefore an important component of the EU’s external energy strategy. Energy supply diversification is in the interests of our partners in the region, as well as the EU.” • The EC will continue to enhance its relations with energy producers, transit countries and consumers in a dialogue on energy security. • The EU is working with regional partners to enhance energy stability through upgrading of existing and the construction of new energy infrastructure. In this context the EC is developing, in cooperation with its partners, a new trans-Caspian trans-Black Sea energy corridor. • For the medium term the EC will examine the possibility of a legal framework between the EU and the ENP region that covers the common interests of security of supply, of transit and of demand. Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  12. BSEC DECLARATION ON COOPERATION WITH THE EU IN THE FIELD OF ENERGYAdopted by BSEC Ministers of Energy on9 April 2008 in Kyiv (excerpts): • Ministers have agreed to: • Develop practical, purpose-oriented cooperation with the EC to enhance synergies of the EU and BSEC regional initiatives in the field of energy; • Invite the EU to support BSEC efforts in ensuring energy security in the region; • Explore on the possibilities of the elaboration of joint BSEC-EU Action Plan in the field of energy; • Develop the exchange of information, expertise and best practices, as well as training programmes between BSEC and the EU Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  13. CONCLUSION • The answer is YES - there are common priorities for the EU and Black-Caspian Sea region to ensure energy security. • What is needed: • Common, consistent and pro-active EU energy policy towards the region • Engage all stakeholders in the process • BSEC as a regional framework and platform for a dialogue and consequently as an instrument of regional policies in energy should be a partner in the process Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

  14. FOR MORE INFORMATION Mailing address: S. Sabancı Caddesi, Müşir Fuad Paşa Yalısı, Eski Tersane, 34460 İstinye - ISTANBUL Phone: +90 212 229 6330 (-35) Fax: + 90 212 229 6336 Email: bsec@tnn.net www.bsec-organization.org www.bsec-business.org www.pabsec.org www.bstdb.gr www.icbss.gr Black –Caspian Sea Region and European Energy Security, 6-7 November 2008, Kyiv

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