Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine - Motion to Proceed

Floor Speech

BREAK IN TEXT

Madam President, I come to the Senate floor today to address the legislation that we are considering, legislation that will provide economic and diplomatic sanctions to deter Russian aggression and also provide financial assistance in the form of a loan guarantee to the Ukraine to provide financial assistance that will be combined with $15 billion in loan guarantees from the European Union as well as assistance from the International Monetary Fund that can truly make a difference for Ukraine in helping them to stand up to this Russian aggression, while at the same time undertaking sanctions that I believe can be effective in deterring the incursions Russia is making into Ukraine.

A very important part of what we do is to be united with the European Union in this effort. For the sanctions to work, for the economic assistance to Ukraine to work, we have to have a united front. We have to work with our allies throughout Europe. But the European Union's ability and willingness to stand with us is greatly impacted by their energy situation. So how do we help? How do we help them address a very difficult situation in energy so that they will stand with us in putting forth the kinds of sanctions that can truly make a difference now? And the time to take action is now. The time to stand up to Russia's action of invading another country unlawfully, taking part of that country, holding an election that is not bona fide, and amassing troops on the border of a country and threatening to make additional incursions into a country--the time to stand up and put sanctions in place that will deter that behavior is now.

But the European Union finds itself in a situation where fully one-third if not more of its energy comes from Russia. Half of that is piped through the Ukraine and 50 percent or more of Ukraine's energy comes from Russia as well--specifically, natural gas. So the EU finds itself in a very difficult position when it comes to energy, and obviously that is a very important factor as they deliberate their steps in terms of both sanctions against President Putin and Russia and the activities he has undertaken and may undertake in the future and also in terms of their willingness to stand up and to halt those actions and to assist Ukraine.

So as part of this legislation we are considering, we have offered to help provide energy to Europe. The good Senator from Wyoming, Mr. Barrasso, was on this floor. He is the prime sponsor of legislation that would help move natural gas in the form of LNG--liquefied natural gas--from this country to Europe. I am a cosponsor of that legislation. We filed that legislation as an amendment to the bill we are considering, and we are asking for a vote on that legislation. I think there would be very strong bipartisan support in this Chamber, and I have no doubt whatsoever that the legislation will pass the House as well. Representative Gardner has introduced the same or very similar legislation on the House side, and there is no question that the support is there to pass the legislation.

So as we look this week--and I think we will pass a bill this week--to both put sanctions on Russia in place and to assist Ukraine, we can add this energy legislation which is an integral piece in helping the EU stand with us in standing up against Russian aggression--very simple, straightforward legislation.

What the legislation provides is that for companies in the United States that are willing to build LNG facilities and export liquefied natural gas, which they are prepared to do--and we will expand the countries to which they can export. Right now we have a limitation in terms of the exports. They can go to countries with which we have free-trade agreements, but there are many other countries that we have strategic security interests in that make a huge difference in terms of our security and security in the world, NATO countries, the EU, Ukraine.

I understand it would take time to build the facilities and move that product, but there is no question in the near term that if we pass this kind of legislation, we will be sending a very strong signal to world markets and, even more importantly, a very strong signal to President Putin that we are serious about working with the EU to provide energy so that they have sources other than Russia. That strengthens the EU, and it also weakens Russia because Russia is entirely dependent for revenue on their sales of energy. So as we take this step, we not only strengthen our allies, we weaken Russia's ability to make the kinds of incursions they have made into the Ukraine.

This is a very straightforward amendment. It has bipartisan support.

We are offering it as part of this bill. As we work through the amendment process and we determine the form this bill is going to take--and again, I think there is strong bipartisan support to move this legislation. I believe we can move it this week. I believe we can get agreement to have the votes and to move it this week. But I call on our leadership, I call on the leadership of the majority party in a bipartisan way to come together and give us the opportunity to vote on this amendment. It is part of a commonsense, comprehensive approach to truly deal with the situation in Eastern Europe.

In addition, I would like to take a moment to call on the President of the United States to take concrete steps that could make a big difference in the energy equation. The President is negotiating with our NATO allies right now, with the EU, which is now the G7--formerly the G8 but the G7 without Russia--talking about what steps can and should be undertaken to address what Russia has done and may do in the future.

On a bipartisan basis, I joined with Senator Mark Warner of Virginia, and on May 21 we wrote a letter to the President calling on him to undertake an energy plan. I would like to take a minute to read that letter on the Senate floor because I think it is a straightforward, commonsense energy plan that the President could undertake right now and show the world and show specifically President Putin that he is serious, that we are serious about working with the EU starting immediately. So it addresses taking short-term steps but undertaking a long-term plan that will ensure that the EU, working with the United States and others--countries such as Norway, which is producing incredible amounts of natural gas in the North Sea--working with countries that can supply natural gas to the EU, that we will end their dependence on Russia. And if Russia continues the kinds of activities it is undertaking, they will find themselves isolated.

Dear President Obama. We write to you today because we are deeply concerned with the events unfolding in Ukraine and Crimea that have been instigated and supported by Russia. President Vladimir Putin's aggressive actions and intransigence, and his continued dismissal of U.S. and European Union warnings, is of particular concern. We share your view that tough sanctions from both sides of the Atlantic will be required to provide the necessary motivation to change Putin's behavior, and to enable a diplomatic resolution of this crisis.

The sanctions that have been implemented so far are good and appropriate; however, we believe that energy security is a critical component to achieving a successful outcome in the region. Russia provides one-third of Europe's natural gas needs. With Russia in a position to slow or stop gas flowing into much of Europe, Putin retains leverage to continue to dominate European energy markets. Though Russia has publicly committed to maintaining a full supply of gas to Ukraine and Europe, their recent history contradicts those proclamations. In January 2009, Moscow cut its supply of gas flowing through Ukraine, and at least 18 European countries saw their supplies completely or partially reduced. Some governments declared states of emergency and ordered factories and schools to close, while millions of people struggled to cope in freezing temperatures.

As long as Vladimir Putin continues to use energy as a weapon, we must take this threat seriously and take this Russian threat off the table.

For the first time in a generation, America is in a position to export energy, and acting strategically to increase our natural gas exports accompanied by a more comprehensive U.S.-EU energy security dialogue will weaken Putin's grip on European energy markets.

We produce 30 trillion cubic feet of gas a year in the United States. States such as mine are producing incredible amounts. We are flaring off gas we would like to get to markets. This is a winning proposition to the United States. If we provide gas to the EU, that generates economic activity and jobs here and helps strengthen the EU and reduces our dependence on natural gas from Russia.

We urge you to take five specific actions that will have near and long term positive impacts on the energy security of Ukraine and the EU.

First, direct the Department of Energy to accelerate the natural gas export permit process by approving the pending permits within 60 days, or providing specific reasons why it cannot approve individual permit applications. Though exports would not start immediately, and though the price points in Asian markets are currently more attractive to natural gas exporters, calling for expedited approval of Liquefied Natural Gas exports will increase liquidity on the global markets and will improve the European energy security.

Second, conduct a strategic review of U.S. energy policies, and expand the group of nations that currently qualify for U.S. energy exports beyond those with free trade agreements to include our NATO allies, the EU, Ukraine, and any others that are in the national security interest of the United States.

It just makes sense.

The review could include examining the potential of additional investments of facilities capable of liquefying natural gas.

Third, launch a joint U.S.-EU initiative on energy security at next week's--

Meaning this week--

U.S.-EU summit in Brussels, with specific near-term and future deliverables. One area of critical importance to ensure greater energy security in Europe is the natural gas infrastructure. While some European countries such as Lithuania and Austria receive 100 percent of their gas from Russia, others receive far less, and by improving the interconnections, these countries could far more easily direct supplies to one another in case of an outage. One specific fix would be to reverse the flow of gas from Slovakia to Ukraine, a proposal that is under consideration by the European Commission. Additionally, we should assist Ukraine to establish and maintain a high level of security around its strategically significant gas storage facilities in Southern Ukraine.

Countries such as Norway--Statoil--can supply more gas. Working cooperatively, we could have an impact right now as well as put a long-term plan in place that sends a very clear message to President Putin that we are going to change the energy equation.

Fourth, help Ukraine implement a significant energy productivity initiative. U.S. businesses have developed many off-the-shelf technologies that can greatly reduce energy waste and promote greater efficiency, which will reduce Ukraine's energy needs. This has the potential to greatly reduce the amount of energy required by Ukraine and lessen their dependence on Russia.

I was recently in Ukraine. We have many U.S. companies doing business over there. Many of the companies were from my State. I met with 10 CEOs from different companies in Kiev that are doing business throughout Ukraine. There is no question that by working with our companies they can have a major impact on what happens in Ukraine both in terms of conserving energy but also producing more energy, and that goes to the final point.

Finally, help Ukraine implement energy development technology to enhance domestic production and promote energy security. We have been contacted by several U.S. companies that are ready to make strategic investments to help Ukraine increase production of their own energy resources to reduce reliance on Russian energy supplies.

We urge you to support and encourage the U.S. State Department's Unconventional Gas Technical Engagement program that allows U.S. local and state-level officials to share best practices with European government officials. Already, U.S. oil and gas companies are leading EU countries in shale gas exploration and off-shore exploration in Eastern Europe to help these countries diversify their energy sources.

We urge you to use the meetings to encourage more European cooperation to solve their own energy dependency problem. A recent proposal from the United Kingdom provides a series of recommended reforms to the European energy infrastructure. We believe our proposal aligns with the British recommendations will provide a helpful starting point for the discussions next week. The U.S. has a long history of supporting the transatlantic relationship on areas of security and defense, and energy security should be part of that dialogue.

We then close the letter saying:

We look forward to working with you to implement this plan.

Think about it. These are steps the administration can and should take now. There is bipartisan support for energy legislation in this body to back it up and make it happen.

I call on my colleagues on both sides of the aisle to come together as part of an effort to deter Russian aggression, help Ukraine. To help the EU stand strong and united with us, we need to address the energy issue. We can and we should.

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