login
login
Image header Agence Europe
Europe Daily Bulletin No. 10981
Contents Publication in full By article 27 / 36
SECTORAL POLICIES / (ae) energy

Trouble ahead on South Stream

Brussels, 10/12/2013 (Agence Europe) - The Commission has called on EU member states taking part in the project to renegotiate the agreements concluded with Russia for the construction of the gas pipeline.

There is trouble ahead for the EU and Russia with regard to the South Stream gas pipeline project that is to link Russia and Bulgaria, and supply the European market through two different branches: one in the south crossing Greece and on into Italy and the other in the north going through Serbia, Hungary and Slovenia and into Austria. Both branches will circumvent Ukraine, the main Russian gas transit country for supplies to the EU.

On 6 December, the Commission announced that it had requested the six EU member states involved in the project and Serbia to renegotiate the agreements concluded with Russia for the construction of the gas pipeline. Marlene Holzner, the spokesperson for Commissioner for Energy Günter Oettinger explained that these inter-governmental agreements, signed between 2008 and 2010 by Bulgaria, Serbia Hungary, Greece, Slovenia, Croatia and Austria do not comply with the fundamental principles of the energy market. According to the Commission, Gazprom, the gas producer and supplier, cannot both control its own production capacity and transmission network.

The Commission held a meeting with the countries concerned, which requested its support for beginning new negotiations with Russia. On 3 December, Oettinger wrote to the Russian energy minister, Alexander Novak, explaining that the Commission was prepared to help the two parties. On Tuesday, 10 December, the Russian prime minister, Dmitri Medvedev, informed the press after his meeting with his Slovenian counterpart, Alenka Bratuse, that “the inter-governmental agreements prevail over EU legislation” but provided assurances, however, that Russia was ready to discuss matters, according to a report by the Russian press agency, Ria Novosti.

In November, two countries involved in the project, Bulgaria and Serbia, began construction work on the controversial gas pipeline in their respective territories. (EH/transl.fl)

Contents

ECONOMY - FINANCE - BUSINESS
EUROPEAN PARLIAMENT PLENARY
SECTORAL POLICIES
EXTERNAL ACTION