Michael Gaul, Deputy Director of the Defense and Security Economics Directorate, Political Affairs and Security Policy Division, NATO Headquarters in Brussels

First, let me say that I am very happy to be invited here and very grateful for this initiative of this very interesting and topical conference which was organized by Open Ukraine Foundation. The timing for this topic is very opportune and the issues put on the table by the previous speakers are very topical. A lot of what I wanted to say was already mentioned, so I will limit myself in this regard.

It should not be news to you as you are a very informed audience that if current government policies are maintained, the world energy needs in 2030 will be more than 50% higher than they are at present. And fossil fuels will continue to dominate the global energy mix and will meet most of the increase of the overall use of energy. Given the security challenges we face today, we all share a common interest in enhancing regional and international security at large, as well as the security of supply – supplies that fuel our economies. We have gathered here in a very relevant region for energy discussions. The Black Sea region and the importance of this region have been underlined by the previous speakers when it comes to energy. And, we, NATO, have constantly commended efforts to strengthen cooperation with this region. We have undertaken our own efforts, our partnerships. And we are glad to see the initiatives fostering dialogue, cooperation and security. In the Black Sea region, as much as in any other region, we need to take a holistic approach to security. It is not just about defense and security sector reform, interoperability, training and exercising but also about democratic and economic reforms. It is about encouraging those processes that indirectly impact good institutions, good governance and economic development. Energy security is a whole part of this process and interdependency as its main characteristic; and the word “interdependency” was used quite frequently at this meeting so far. But instead of interdependency, you can also say it is a kind of mutual vulnerability between producers, transit countries and consumers. In order to achieve economic development we need healthy and well running economies. Energy is merely one sector of the economy. It is one with a very heavy weight and setting the right ingredients for economic growth. And energy is also one, only one of many XXI-st century’s challenges we have. We have financial crisis, food crisis, climate change, water crisis. But all of them are interrelated and connected. And the energy element is the very heavy element in this. And energy security links us all together – suppliers, consumers and transit countries. Nations in these regions are major producers as well and it was just mentioned, major consumers; and the Black Sea–Caspian Basin hosts a diverse and complex transportation network for energy resources. It goes without saying that these regions are extremely relevant when it comes to energy issues. So, energy security is a global issue with strong regional characteristics. Therefore, international organizations have a role to play either as regulators, facilitators, or as security providers. NATO as a political military organization has specific tools that can be used in promoting and contributing to energy security in the comprehensive way. And NATO compliments other international organizations’ efforts in this field. NATO has no ambitions to take over these activities that the EU has in its portfolio. But NATO has other means and other ways to deal with this area.

So, what is NATO’s outlook on energy security? NATO allies and partner countries in this region, share many strategic interests and face common challenges. Such as fight against terrorism, piracy, proliferation of weapons of mass destruction, trafficking of different kinds, frozen or about to melt conflicts, and last but not least – energy security. And energy security is not more and not less than the provision of adequate, affordable, reliable, timely, clean and uninterrupted energy supply. A growing number of countries rely on a long transport hood such as pipelines, super tankers, and many of them host large processing plants. Energy industry and its means of transportation are complex and vulnerable, as we have seen with the Georgia crisis, and also acts of piracy near the coast of Somalia during the last few months. All in all, it is clear that NATO has a specific expertise and added value to bring in this field. Energy security has become a legitimate issue of debate in the Alliance among allies, but also between allies and partners. NATO is clearly not a lead organization when it comes to energy, but it has to play a role and this was confirmed at the Bucharest Summit by the Heads of states or governments when they agreed on document which sets out specific principles and guidelines, and five areas in which NATO will engage in the field of energy security. These are the areas are information and intelligence fusion and sharing, projecting stability, international and regional cooperation, support of consequent management and support of the protection of critical energy infrastructure. Let me just explain a little bit what this means. Information and intelligence fusion and sharing: NATO is able to rapid fusion of information from multiple sources, including intelligence sources. We assess risks with 26 nations, very soon – with 28, to energy security and energy infrastructures. To bring together all this know-how is really a value added, and leads to mutual success in putting together information which different services and different countries have; to be aware: what can happen, where are the risks, for what do we have to be prepared.

The second area is the area of projecting stability. We have many partnerships and cooperation relations, which can act very flexibly, at different speeds, in accordance with the need of different countries. And we have very efficient mechanisms of cooperation, relations with partner countries, which covers wide range of areas. And this allows exchanging information and best practices with all the countries involved, and to respond to specific needs in the field of energy security. Energy security remains mainly a national responsibility, and the industry responsibility. But NATO can help nations and partners and also the industry to work on a standard which insures the highest possible energy security in the areas of responsibility.

The next area is the area of advanced regional cooperation. The alliance has the capacity to facilitate dialogue and to highlight the interdependency among us in the field of energy. In this sense we do political consultations, formally do meetings at the NATO Headquarters, and informally at conferences, like this and we have just had a series of conferences in this area. We had one in Armenia, one in Doha in Qatar, which was very interesting to meet there and to meet with the energy producers, and we also had one this week, here, in Kyiv, co-organized with the Ministry of Economy and the Ministry of Foreign Affairs of Ukraine. So, we are really trying to discuss and to exchange views and to see where the interest and center of gravity of the concerns of our partners are, and to help to have a political dialogue.

Energy security is of a global concern and therefore we do this kind of cooperation to address this area in a comprehensive way. And it was mentioned before, energy security forces us to work together and there is a certain opportunity in it for solving frozen conflicts, for brining peace and stability through cooperation.

Let me come to the next area, the area of support to consequence management. This means what can somebody do if something has happened, if you have a catastrophe based on any event in the area of energy. NATO has specific body for this with a very complicated name - Euro-Atlantic Disaster Response Coordination Center. This is the body which can act as a focal point for the coordination of disaster relief of consequence management efforts. And this was already proved when NATO provided assistance to Pakistan after the earthquake, or in case of the hurricane Catherina in the US. So, there is a lot of experience acquired over the years, and the Center has the capabilities to mitigate facts of accidents or attacks on critical energy infrastructure and can put its experience in the service of others, other countries, United Nations, other international organizations on a case-by-case basis.

And the last area is the area of support to the protection of critical energy infrastructure. Energy infrastructure is a wide range of things - these are electricity tracks, transmission facilities, pipelines, nuclear power plants, storage facilities. NATO can on request support protection of allies’ critical energy infrastructure and to provide advice on key risks regarding energy infrastructure. We can also share best practices and experiences with partner nations and have acquired the experience in the field of maritime security, e.g., cooperation active in Court-de-Devoіr has demonstrated the Alliance’s ability to employ its military assets to uphold security and international law on the high seas including protection of the right of passage for wider energy supplies. Also worth mentioning that just recently allies have taken the decision to play a role in the tearing piracy on the coast of Somalia.

While engaging in all these areas, NATO will seek cooperation with partners and relevant international actors as well as a private sector in order to provide a forum for consultation on the most immediate risks that relate to energy security.

Let me come to my conclusion. Discussions are that NATO should not be and is not confined only to subjects of immediate military relevance; they can and they should primarily include issues of broader political and practical interest. In today’s security environment it is clear that geography is not longer a safe card. Distance is no longer a deterrent. And isolation is no longer a viable policy option. Effective international cooperation is therefore a necessity. Better cooperation is a better understanding of each other and exchange of opinions and perceptions. Energy security and the mutual vulnerabilities in this field provide an excellent opportunity to continue and further strengthen our dialogue and cooperation which is in today’s economic environment more important than ever before. NATO offers something very precious, something that no other organization can offer. It offers sixty years of security consultation and military cooperation among sovereign nations. In other words, NATO offers the wealth of experience in multilateral security, an experience that we want to share with others also when it comes to energy security. Thank you very much for your attention.

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