Schröder feels heat over Gazprom

GERHARD SCHRÖDER has got off lightly so far for a breathtakingly disreputable choice of employer. Perhaps not for much longer, though, given the heat rising in Poland, the US and Germany’s own media. The former German Chancellor surely hoped that in taking up the post of chairman of an arm of Gazprom he could make the most of his friendship with Russia’s President Putin and indulge his warm pursuit of a German-Russian alliance, all in a low-key way.

Less than a month after he took the job, the state-owned Gazprom (and Putin too) have become intercontinental villains, threatening to turn off lights across Europe.

As supervisory chairman of the German-Russian consortium building the North European Gas Pipeline, Schröder will be leading a project which was always controversial but is ten times so now after Russia’s threats to cut off Ukraine’s gas.

The speed with which he took the post, just weeks after losing the Chancellorship, has reopened uneasy questions about why he was so eager to court Russia when in office.

The plan to run a pipeline to Germany (and perhaps on to Britain) through the Baltic Sea, bypassing Poland, Lithuania, Latvia and Estonia, was always contentious.

The sea route deliberately bypassed the former Soviet countries, even though it was more expensive. Russia, annoyed at their courtship of the European Union and the US, at their wariness of Moscow and delight in their independence, did not want to be beholden on them for transit. Germany conspired in the plan, to Poland’s fury. Poland was right to argue that the pipeline made its own gas supplies from Russia vulnerable, and made it susceptible to pressure from Moscow.

Russia would no longer be restrained in its dealings with Warsaw by its need for Poland to carry gas through to Western Europe.

In the past few years since the pipeline was agreed, Poland’s fears might have seemed abstract. Since Russia’s threats to Ukraine, they can’t.

You might say that Tony Blair, in angling for the pipeline to continue to Britain, was complicit too. But that would be a little harsh.

His courtship of Putin (rushing to be the first European leader to visit the President-elect) has never been one of the most admirable parts of his foreign policy. He has often seemed to glide too blithely over the signs of Putin’s authoritarianism.

But the route of the pipeline after it had arrived in Germany — whether it continued to Nordic countries, or Britain, or both — was always secondary.

The US press has been scathing of Schröder’s move. The Washington Post asked whether the Gazprom job was his reward for having “thwarted attempts to put unified Western pressure on Russia” over Chechnya. Now the German press is catching up in vitriol.

The mass circulation Bild newspaper reckons that Herr Schröder will be earning €1 million a year. The opposition says that the money won’t make him happy and is calling for him to step down.

A fortnight ago he could have ignored them with ease. But that was before his new sponsor made itself Europe’s most unpopular company.

In the first place, it's still not clear whether or not Russia had a right to change the contract in midstream. We don't know what it says.

In the second place, if they have revoked the contract, then what right do they have to expect the Ukraine to transship natural gas across its territories without payment? Ukraine agreed to transship as part of the contract, Russia says that the contract no longer exists, yet they expect Ukraine to keep on shipping gas as if it did?

In the third place, Ukraine probably has a right to invoke Force Majeure in the circumstances. Russia has cut off their fuel in in the middle of an unusually cold winter.

They offered Russia a compromise, which Russia refused. Whatever the legal technicalities, and we really don't know what they are, it's Russia that looks bad here. They agreed to a below-cost contract with Ukraine and now have reneged on it in mid-winter. They have a right to ask a fair market price, but not be breaking a contract in the middle of winter.

You may as well go here to donate:
http://www.soros.org/about/foundations/poland
http://www.batory.org.pl/

The Stefan Batory Foundation is an independent private Polish foundation established by American financier and philanthropist George Soros and registered in Poland in May 1988. Named after the 16th century king of Poland of Hungarian extraction the Foundation’s mission is to support the development of an open, democratic society in Poland and other Central and East European countries. The Foundation’s activities are funded by the Open Society Institute, Trust for Civil Society in Central and Eastern Europe, the Ford Foundation, Robert Bosch Stiftung and other institutional and individual donors in Poland and abroad.
The key priorities of the Foundation are:
Enhance the role and involvement of civil society
We are committed to assist the building of civil society in Poland and throughout the Region. We want a society in which citizens have a sense of shared responsibility for the democratic process and are not expecting all their issues to be tackled by the state but organise themselves around their needs, opinions and desires. Therefore, we support a variety of public initiatives, mainly independent non-governmental groups which are active wherever the role or capacity of the state is limited, which contribute to increased public participation in public affairs and create equal opportunities for the weaker or disabled.
Promote civil liberties and the rule of law
The respect for the rule of law, the transparency of public life, protection of civil liberties, minority rights, the rights of women, children and people with disabilities, immigrants and refugees – they are the cornerstone of democracy which we want to promote in Poland and other countries of the Region. We provide support to projects which enhance legal or civic education, measures to improve public access to legal aid and justice. We promote the understanding and methodology of public scrutiny of administration and the protection of the rights of individuals against any forms of abuse of power.
Develop international co-operation and solidarity
States have clearly defined borders. However, nations and societies should interact and enrich one another. We support projects that foster the exchange of experience with political transition, build civil society and solve social problems between Central and Eastern European countries. We are active towards rapprochement between the East and West and we object to the reestablishment of a new “iron curtain” on the eastern border of Poland. We seek the strengthening of the role of civic initiative in international relations and unity in the search for democracy and human rights.
The Foundation works proactively, encouraging long-term thinking, partnership between the public and private sectors, innovative approaches, and coalition building in addressing social problems. In its activity, the Foundation is guided by the principles of transparency, openness and accountability. Its finances are professionally audited and published in the Annual Report, together with a list of grants awarded and projects implemented throughout the year.
The basic method of Foundation’s operation is grantmaking. The Foundation also serves as a forum for activity, organizing conferences, debates and training seminars, publishing policy papers and reports, and initiating awareness campaigns. The Foundation encourages solidarity and generosity by offering administration of named funds and corporate funds to support initiatives that serve the public interest.

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