Putin, Barroso Fight over EU Energy Rules

0 European Commission President Jose Manuel Barroso (R) and Russian Prime Minister Vladimir Putin (L) prior to a meeting at the EU Commission headquarters in Brussels, Belgium 24 February 2011

EU's intention to deny suppliers of oil or gas from also directly managing pipelines lead to a clash between Russian Prime Minister Vladimir Putin and chair of the European Commission Jose Manuel Barosso.

The EU plans could hurt Russian enterprises, Putin stated on Thursday, and likened them to "property confiscation." He spoke at a press conference after a meeting of the Russian government and the Commission in Brussels.

Russia is the main natural gas supplier to the EU and is in the process of building two new pipelines, Nord Stream and South Stream.

However, Barroso retaliated that the bloc's new energy framework was in line with World Trade Organization rules and was therefore non-discriminatory. It would affect foreign and domestic companies alike, according to him.

Meanwhile, Putin underlined the importance Russia as a reliable energy source, especially at times when North African turmoils are threatening energy supplies to Europe. He also stated he is concerned that unrest in Libya has driven crude prices beyond fair market levels, endangering the global economy.