Welcome to our in-depth analysis of Europe’s most pressing matters, with our focus on the European Union, NATO, and their relationship with the Western Balkans and Europe’s Eastern neighbors. I am your Europe correspondent, Rikard Jozwiak, and this week we will be exploring two significant topics: the integration of the Baltic states into the continental electricity grid and the EU’s new proposed sanctions package.
Issue #1: Baltic States’ Integration into Europe’s Electrical Grid
Key Details:
This weekend marks a crucial change for Estonia, Latvia, and Lithuania. The trio will disconnect from the IPS/UPS electricity transmission grid, which links them to Russia, Belarus, and the Russian exclave of Kaliningrad, on February 8. The very next day, they will connect to the synchronous grid of Continental Europe, also known as the UCTE grid. This grid encompasses most European countries, stretching from Portugal in the west to Ukraine and Turkey in the east.
The Baltic Synchro, as it’s termed, is a significant step for these Baltic nations. They will have more control over their electricity supplies, shaking off the last remnants of the Soviet era. Diplomats see this as an equivalent milestone to the withdrawal of Soviet troops in the 90s. Initially intended to occur at the end of 2025, the Baltic Synchro was expedited by nearly 11 months due to the Ukrainian conflict and the Baltic nations’ ambition to gain full independence from potential Russian energy manipulation.
Historical Context:
Connecting to the continental grid has been a long journey for the Baltic countries. They signaled their intent in 2007, applied in 2018, and informed Moscow and Minsk last year that they would leave the Brell agreement, which kept them in IPS/UPS. The synchronization required extensive preparation, both technically and legally. It involved negotiations, paperwork, and infrastructure upgrades costing 1.6 billion euros, 75% of which was funded by the EU budget.
Issue #2: EU’s Proposed New Sanctions Package
Key Details:
The European Commission has proposed the next round of sanctions on Russia and Belarus, aiming for unanimous agreement by the third anniversary of Ukraine’s full-scale invasion. Despite some member states’ concerns about escalating energy prices, the proposed sanctions will target Russian aluminum, media, and the "shadow fleet," albeit without significant restrictions on Russian energy.
The proposal comes on the heels of Hungary threatening to veto the six-month extension of previous packages due to the halt of Russian gas to the EU via Ukraine. While unable to reverse that decision, Budapest eventually consented after the bloc agreed on a statement ensuring the continuation of oil supplies via pipeline to the EU.
Historical Context:
This round of proposed sanctions could ban the broadcast of TASS, Russia’s state news agency, in the EU, following previous sanctions against RT and RIA Novosti. Further proposed sanctions include import bans on Russian primary aluminum and export bans on gaming controllers and consoles to Russia due to fears of drone construction.
Looking Ahead
With Poland currently presiding over the Council of the European Union, the entire European Commission will rendezvous with the Polish government in Gdansk on February 6-7. It’s anticipated that Poland will highlight its status as a key member of the bloc, especially with France and Germany grappling with domestic issues.
That sums up this week’s briefing. I’m always open to discuss these topics further. You can contact me on Twitter @RikardJozwiak, or via email at [email protected].
Best Regards,
Rikard Jozwiak
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