Russia secured approval from Turkey
on Wednesday to build the South Stream gas pipeline across the Black Sea,
removing the last major obstacle to proceed with a project that could increase Europe's dependence on Russian natural-gas supplies.
The move heats up the battle between Russia
and the European Union over competing pipelines, especially the European Union-backed
Nabucco project, and increases pressure on Ukraine
to give Moscow
control of its pipeline system.
Turkey's
approval, given by Energy Minister Taner Tildiz during talks with Russian Prime
Minister Vladimir Putin in Moscow on Wednesday,
had been a stumbling point for Russia
to proceed with the offshore part of the South Stream project.
Russian state gas giant OAO Gazprom ships most of its gas exports to Europe via
Ukraine, but supply disruptions in recent years due to pricing disagreements
between the two countries have led Russia to seek to bypass Ukraine and promote
new pipelines such as South Stream.
Analysts say progress on South Stream increases pressure on Ukraine. Kiev is pushing for
cheaper gas in order to balance its budget.
But in exchange for cheaper gas, Moscow is
aiming to gain control of Ukraine's
pipeline system.
South Stream is envisioned to carry as much as 63 billion cubic meters of
Russian gas under the Black Sea to Bulgaria,
Serbia and Hungary before branching out to Western Europe.
Gazprom, the main shareholder in the project and a major supplier of gas to
Europe, said Turkey's
approval means South Stream will start operating according to plan by the end
of 2015. ENI SpA of Italy, BASF SE of Germany and Electricite de France SA are
minority partners in the project.
"This is a very good and positive signal for all of us, which undoubtedly
will provide stability in energy supplies to the European market," said
Mr. Putin.
A European Commission spokesman played down the impact of the South Stream
agreement, which he said "would not affect the existing framework and
commitments."
European officials say that, unlike Nabucco, South Stream hasn't reached the
project stage yet.
Nabucco is the most ambitious and expensive of four competing proposals to take
gas from Azerbaijan,
and possibly eventually from other countries, into the European Union. But
Nabucco's estimated cost is a potential deterrent for developers of the giant
gas field, which lies under the Caspian Sea. A
decision on the winning project is expected to be announced in the first half
of 2012.