After the gas crisis, the Arctic could be Russia and Europe’s next flashpoint

A new cold front could open up in the political tension between the European Union and Russia over energy. This time in the Arctic.

On Wednesday, the EU put forward proposals that could see it pushing to ban the tapping of new oil, coal and gas deposits in the Arctic in an effort, it said, to protect the region from further disruptive climate change.

Russia, a major holder of Arctic territory where an abundance of its hydrocarbon and fish stocks are found, is not too pleased with the proposals with Russia’s Deputy Prime Minister Alexander Novak telling CNBC Thursday that they were politically-motivated and nonsensical.

“ I was a bit surprised when I heard about this yesterday. Why the Arctic, why not the Equator? One could come up with a number of places in the world where oil and gas production must be banned,” he told CNBC’s Hadley Gamble at the Russian Energy Week conference in Moscow, according to a translation.

“This proposal has no other motivation than political,” he added. “What do these statements tell us – that we need to stop extracting the entire gas produced at the moment? I think that the authors of these proposals have very little understanding of the real state of affairs,” he said.

The EU proposals come at a time when tensions are already high between Russia and the EU when it comes to energy, and specifically natural gas. Prices have been soaring as Europe’s demand is squeezed by tighter-than-expected supplies.

Russia has said it has ramped up gas supplies but critics say it is using its gas exports to the region for political purposes , chiefly its bid to get Germany to certify the Nord Stream 2 gas pipeline. Russia denied it was exploiting Europe’s gas crisis, with President Vladimir Putin insisting to CNBC on Wednesday that Moscow was not using gas a weapon.