Draghi whips past governments over Russia: this is where Italy will now buy gas

25 February 20222 years ago babelfish

Gas, Russia, Ukraine and more. What did the Prime Minister, Mario Draghi, say in the Chamber.

“The sanctions we have approved, and those we may approve in the future, require us to carefully consider the impact on our economy. The greatest attention concerns the energy sector, which is already hit by the rises in recent months: about 45% of the gas we import comes from Russia, up from 27% ten years ago ", said the Prime Minister, Mario Draghi, in the Chamber.

Draghi continues: "In Italy, we have reduced gas production from 17 billion cubic meters per year in 2000 to about 3 billion cubic meters in 2020 – against a national consumption that has remained constant between 70 and 90 billion about cubic meters ".

“We must proceed quickly on the European diversification front, to overcome our vulnerability as soon as possible and avoid the risk of future crises. The Government – he continued – constantly monitors gas flows, in close coordination with the institutions. We have met the Gas Emergency Committee several times to regulate and analyze operational data and possible scenarios. A better situation than that of other European countries, also thanks to the quality of our infrastructures ".

“The filling level had reached 90% at the end of October, while the other European countries were around 75%. The storages – explained Draghi – were then used at full capacity and in February they already reached the level they generally have at the end of March. This situation, which would have been more serious in the absence of adequate infrastructures and policies, is similar to that experienced by other European countries including Germany. The end of winter and the arrival of milder temperatures allow us to look forward to the next few months with greater confidence, but we must take action to further improve our storage capacity for the next few years ".

“Italy – continues the premier – is also committed to pushing the European Union in the direction of common storage mechanisms, which help all countries to cope with moments of temporary reduction in supplies. We hope that this crisis will finally accelerate a positive response on the issue. However, the Government is working to prepare all the necessary measures to better manage a possible energy crisis. We hope these plans aren't necessary, but we can't be caught unprepared. The emergency measures include greater flexibility in gas consumption, suspensions in the industrial sector, and rules on gas consumption in the thermoelectric sector, where load reduction measures also exist ”.

“The government is also working to increase alternative supplies. We intend to increase liquefied natural gas imported from other routes, such as the United States. The American President, Joe Biden, has offered his willingness to support the Allies with more supplies, and I want to thank him for that. However, our capacity to use is limited by the small number of regasifiers in operation. For the future, a reflection on these infrastructures is all the more opportune. The Government also intends to work to increase flows from non-fully loaded gas pipelines – such as TAP from Azerbaijan, Transmed from Algeria and Tunisia, Greenstream from Libya. Coal-fired power plants may need to be reopened to fill any shortcomings in the short term, ”said Draghi.

HERE IS THE INTEGRAL INTERVENTION OF MARIO DRAGHI IN THE ROOM:

Mister President,

Honorable Members,

On the night between Wednesday and Thursday, the Russian Federation launched a massive offensive against Ukraine.

The attack came immediately after a message with which President Putin announced a "special targeted operation" in eastern Ukraine, and was preceded by a widespread cyber attack that paralyzed Ukrainian government sites.

The invasion immediately assumed a large and growing scale.

Russian land forces entered Ukrainian territory from the north-east, north, south-east and south coast, and the Sea of Azov was closed to navigation, isolating the ports of Mariupol and Berdiansk.

We have seen widespread explosions, including in the Lviv region, the closest to the border with the European Union.

Russian amphibious forces have landed in Odessa, the main port city, where there are reports of at least twenty victims.

The Russian army continues with missile launches on major cities, including those in central-western Ukraine.

A rain of missiles fell on Kiev last night as the army besieged several cities along the road between the border and the city.

The Russian army has taken control of the Chernobyl nuclear power plant area.

Ukraine has so far 137 soldiers killed and 316 wounded since the beginning of the attack and speaks of 800 men lost by Russian forces, which have not yet provided data on the victims of the invasion.

The offensive has already hit the Ukrainian population in a tragic way: the Ukrainian Ministry of the Interior records civilian casualties.

The images we see – of defenseless citizens forced to hide in bunkers and subways – are terrible and take us back to the darkest days in European history.

There are long lines of cars exiting Kiev and other Ukrainian cities, especially towards the border with the EU.

It is possible to imagine a huge influx of refugees to neighboring European countries.

Ukrainian President Zelensky affirmed the determination of the Ukrainian authorities to resist and respond to Russian fire, and to break diplomatic relations with Moscow.

Last night he issued a decree that provides for a "general mobilization" of all men between 18 and 60 years of age, who have been banned from leaving the country.

The operations risk prolonging until the destruction of the Ukrainian defense system.

The Russian government has proposed direct negotiations with the Ukrainian government, and confirmed that the goal is to neutralize and demilitarize Ukraine.

There is currently no Ukrainian match.

The Italian Embassy in Kiev is open, fully operational, and maintains relations with the Ukrainian authorities, in coordination with the other embassies, also for the protection of Italian residents.

The Embassy remains on full alert and is ready for any decision.

We have already moved the staff to a safer location.

The approximately 2000 compatriots present were advised to follow the instructions of the local authorities and to evaluate with extreme caution the movements by land inside and outside the country.

In light of the closure of the airspace and the critical situation on the ground, we are planning a safe evacuation in coordination with the main embassies of the European Union.

I want to thank Ambassador Pier Francesco Zazo and all the staff of the Embassy for the professionalism, dedication and courage they are showing in these hours.

And I want to thank Minister Di Maio, the diplomats and all the staff of the Farnesina for their unremitting commitment.

Italy strongly condemns the invasion, which we consider unacceptable.

The attack is a very serious violation of the sovereignty of a free and democratic state, of international treaties, and of the most fundamental European values.

I want to express once again the solidarity of the people and of the Italian government with the Ukrainian population and with President Zelensky.

The return of war to Europe cannot be tolerated.

Italy reacted immediately, and already yesterday morning summoned the Ambassador of the Russian Federation to the Ministry of Foreign Affairs.

We called on Moscow to cease the offensive, to withdraw its forces unconditionally, and we reaffirmed Italy's full support for the territorial integrity and sovereignty of Ukraine

Also yesterday morning, I spoke with the French President Macron, the German Chancellor Scholz, the President of the European Council Michel, the President of the European Commission Von der Leyen.

With them I shared the firm condemnation of an "unjustified and unprovoked" attack against Ukraine.

In the early afternoon, we met with the other leaders of the G7, and adopted a Declaration firmly condemning the Russian aggression and calling for an end to hostilities and a return to negotiations.

Yesterday, in the evening, I participated in an extraordinary European Council, in which President Zelensky also took part, in which the European Union expressed its condemnation of Russia and Belarus. The connection with President Zelensky was a truly dramatic moment. It is hidden somewhere in Kiev. He said that he is running out of time, that Ukraine runs out of time, that he and his family are the target of the Russian invasion forces. It was a dramatic moment that affected all the participants in the European Council. Today, this morning before coming here, he looked for me before coming here, we fixed a telephone appointment, for 9.30, but it was not possible to make the phone call because President Zelensky was no longer available.

This afternoon, I will be attending a NATO Summit to coordinate the strengthening of the Eastern flank and reaffirm the principles underlying our position.

As regards the bilateral plan, we are defining a 110 million euro package of financial aid to Ukraine for humanitarian and macro-financial stabilization purposes.

In the field of defense, assistance measures are being prepared, in particular in the field of demining and the supply of protective equipment.

The Italian government has always hoped, together with its international partners, to resolve the crisis peacefully and through diplomacy.

Any dialogue, however, must be sincere and above all useful.

The violence by Russia this week makes such a dialogue virtually impossible.

Our priority today must be to strengthen the security of our continent and apply maximum pressure on Russia to withdraw its troops and return to the negotiating table.

From a military point of view, NATO has already taken action.

Yesterday the North Atlantic Council met on the basis of the provisions of Article 4 of the Washington Treaty and approved five gradual response plans which, in this first phase, aim to consolidate the deterrent posture in the east.

The subsequent phases, linked to an evolution of the scenario, foresee the assumption of a "defense" posture and, subsequently, of "re-establishment of safety".

The plans envisage two fundamental aspects: the increase of the forces deployed in Allied territory, with the transit of military units under the chain of command and control of the Supreme Allied Commander in Europe; and the use of rules of engagement prepared for immediate engagement.

The Italian forces we expect to be deployed by NATO are made up of units already deployed in the area of operations – about 240 men currently deployed in Latvia, along with naval forces, and aircraft in Romania; and others that will be activated at the request of the Allied Command.

For these, we are ready to contribute around 1400 men and women from the Army, Navy and Air Force, and with an additional 2000 military personnel available.

The forces will be deployed in NATO's area of responsibility and there is no implied border crossing authorization.

Italy and NATO want to convey a message of unity and solidarity to the Ukrainian cause and of defense of the European security architecture.

I want to thank Minister Guerini and our armed forces for their readiness and preparation.

As far as sanctions are concerned, Italy is perfectly in line with the other countries of the European Union, first of all France and Germany.

The measures were coordinated together with our G7 partners, with whom we fully share strategy and objectives.

The first restrictive measures against Russia were formally approved on Wednesday, in relation to the decision to recognize the independence of the territories of Donetsk and Lugansk.

These measures consist of a ban on imports and exports from separatist entities, modeled on what was done in 2014 in response to the illegal annexation of Crimea;
in economic and financial sanctions on Russia, such as the ban on refinancing sovereign debt on the secondary market and the freezing of assets of three banking institutions;
targeted sanctions against individuals and entities, such as the more than 300 members of the Duma who proposed the recognition of separatist territories and who voted in favor.

Following the Russian invasion of the past few days, in yesterday's European Council we approved much more stringent and incisive measures, which had been in preparation for weeks.
The relevant legislative acts are being discussed in Brussels at this time, and for this reason I cannot give an exhaustive account of them.

They will be finalized and adopted very quickly.

On Tuesday I will return to the topic.

These sanctions include financial measures, such as a ban on refinancing for banks and state-owned enterprises in Russia, and the blocking of new bank deposits from Russia to EU credit institutions; measures on the energy sector, aimed at preventing the transfer of advanced technologies, used mainly for oil refining; measures on the transport sector, such as the export ban extended to all goods, technologies, services intended for the aviation sector; a freeze on funding for new investments in Russia and other export control measures;
the suspension of visa facilitation agreements for Russian diplomatic and service passports.

We also envisage a second "package" that includes Duma members who have not yet been sanctioned.

These days, the European Union has shown its determination and compactness.

We are ready for even tougher measures if these do not prove to be sufficient.

The sanctions we have approved, and those we may pass in the future, require us to carefully consider the impact on our economy.

The greatest concern concerns the energy sector, which has already been hit by the rises in recent months: around 45% of the gas we import comes from Russia, up from 27% ten years ago.

The events of these days demonstrate the imprudence of not having diversified more our energy sources and our suppliers in recent decades.
In Italy, we have reduced gas production from 17 billion cubic meters per year in 2000 to around 3 billion cubic meters in 2020 – against a national consumption that has remained constant between approximately 70 and 90 billion cubic meters. .

We must move quickly on the diversification front, to overcome our vulnerability as soon as possible and avoid the risk of future crises.

The government constantly monitors gas flows, in close coordination with the European institutions.

We have met the Gas Emergency Committee several times to regulate and analyze operational data and possible scenarios.

The Italian warehouses benefit from having had, at the beginning of winter, a better situation than that of other European countries, also thanks to the quality of our infrastructures.

The filling level had reached 90% at the end of October, while the other European countries were around 75%.

The stocks were then used at full capacity and in February they already reached the level they generally have at the end of March.

This situation, which would have been more serious in the absence of adequate infrastructures and policies, is similar to that experienced by other European countries including Germany.

The end of winter and the arrival of milder temperatures allow us to look forward to the next few months with greater confidence, but we must take action to further improve our storage capacity for the next few years.

Italy is also committed to pushing the European Union in the direction of common storage mechanisms, which help all countries to cope with moments of temporary reduction in supplies.

We hope that this crisis will finally accelerate a positive response on the issue.

However, the Government is working to prepare all the necessary measures to better manage a possible energy crisis.

We hope these plans aren't necessary, but we can't be caught unprepared.

Emergency measures include greater flexibility in gas consumption, suspensions in the industrial sector, and rules on gas consumption in the thermoelectric sector, where load reduction measures also exist.

The government is also working to increase alternative supplies.

We intend to increase liquefied natural gas imported from other routes, such as the United States.

The American President, Joe Biden, has offered his willingness to support the Allies with more supplies, and I want to thank him for that.

However, our capacity to use is limited by the small number of regasifiers in operation.

For the future, a reflection on these infrastructures is all the more opportune.

The government also intends to work to increase flows from non-fully loaded gas pipelines – such as TAP from Azerbaijan, TransMed from Algeria and Tunisia, GreenStream from Libya.

Coal-fired power plants may need to be reopened to fill any shortcomings immediately.

The Government is ready to intervene to further calm the price of energy, should this be necessary. Yes, it is necessary.

For the future, the crisis forces us to pay more attention to the geopolitical risks that weigh on our energy policy, and to reduce the vulnerability of our supplies.

I want to thank Minister Cingolani for the work he does every day on this issue which is so important for our future.

I talked about gas, but the most valid answer in the long term lies in proceeding quickly, as we are doing, in the direction of greater development of renewable sources, also and above all with greater simplification of the procedures for installing plants.

In this regard, I would like to note that the obstacles to greater speed on this path are not technical, they are not technological, but they are only bureaucratic.

But gas remains essential as a transition fuel.

We need to strengthen the southern corridor, improve our regasification capacity and increase domestic production at the expense of imports.

Because the gas produced in your country is more manageable and can be cheaper.

The historical crisis that Italy and Europe are facing could be long and difficult to recompose, also because it is confirming the existence of profound differences on the vision of the international world order that will not be easy to overcome.

The Government intends to work tirelessly, in close coordination with the allies, to give citizens the answers they are looking for in this moment of serious uncertainty.

To do this, your support – from the majority and the opposition – is essential.

In these hours I have received statements of support from all the political groups and their leaders.

I would like to thank them all.

I am sincerely grateful to you, because Parliament is the center of our democracy, the home of all Italians and its proximity expresses the closeness of the country.

In the face of the terrible threats we face, in order to be united with Ukraine and with our allies we must first of all remain united among ourselves.

Thank you.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/draghi-russia-gas/ on Fri, 25 Feb 2022 11:27:15 +0000.