Brussels, 02/12/2014 (Agence Europe) - Despite the announcement by President Vladimir Putin on Monday 1 December that the proposed South Stream gas pipeline may be about to be scrapped by Russia, the European Commission said on Tuesday 2 December that it would continue talks.
“The South Stream pipeline project has been regularly discussed between the relevant member states and the Commission. The Commission has hosted several meetings that aimed at finding a solution to this project that would fully comply with the EU legislation. The next meeting had been planned for 9 December and it will take place regardless of the announcement by Russia to stop the project. Obviously this new development will be an additional element that will be discussed in that meeting”, commented Energy Union Commissioner Maros Sefcovic. “The ever changing energy landscape in the EU is yet another reason for the EU to build a resilient Energy Union with a forward looking climate policy. One of the priorities for the Energy Union will be security of energy supply”, he added.
During his visit to Ankara on Monday, the Russian president said that the gas pipeline project that is being headed by the Russian gas group Gazprom (50%), with the participation of ENI of Italy (20%), EDF of France (15%) and Wintershall of Germany (15%), could be shelved. South Stream was planned to link Russia to Bulgaria, under the Black Sea, thus avoiding Ukraine, to supply the EU by means of a southern arm through Greece to Italy and a northern arm through Serbia and Hungary and on to Austria, Croatia and Slovenia. It is proposed that South Stream will carry 63 billion cubic metres of Russian gas to Europe every year - more than 10% of European demand. The cost of the project is estimated to be over $40 billion.
“We are going to divert our energy resources to other regions of the world and Europe will no longer receive the same amount from Russia, but that is the choice made by our European friends”, Putin said, justifying the abandonment of the project by Bulgaria's refusal to authorise the pipeline to pass through its territory because of non-compliance with Community law. “South Stream is finished”, confirmed the head of Gazprom, Alexei Miller, shortly afterwards. On Monday, Russia and Turkey signed an agreement on the construction of a new gas pipeline linking the two countries under the Black Sea and for the supply of Russian gas with a reduction of 6%. Turkey is Gazprom's second largest customer after Germany. (EH)