Russian gas monopoly Gazprom said a gas pipeline dubbed Turkish Stream will be built instead of the long-planned South Stream natural gas pipeline for Europe.
“The South Stream pipeline will not be constructed and we will be implementing another project, which will get its name in the nearest future,” Gazprom Deputy CEO Alexander Medvedev said on December 22. “Our partners in Turkey proposed the name of the Turkish Stream,” he added.
He also said that Gazprom expects this year’s gas sales toEurope tostand at147 billion cubic metres, down9% sincelast year.
Russian President Vladimir Putin said during an early December visit in Ankara that the 63-billion-cubic metre South Stream “will not be carried out”.
South Stream was planned to carry gas from Russia under the Black Sea, making landfall in Bulgaria and then continuing through Serbia and Hungary towards Austria.
Bulgarian Prime Minister Boyko Borisov said on December 19 that his country will proceed with the preparatory works for the construction of South Stream and will issue the necessary permits, “so as to give Russia no grounds to claim that Bulgaria is responsible for the project halt”. “Otherwise, they will take us to court and will take our money,” he added.
Chris Weafer, a senior partner at Macro-Advisory in Moscow, told New Europe on December 22 that South Stream is now officially dead.
“President Putin has occasionally used bluffs to force some issues, but I seriously doubt this is one. He was standing next to the Turkish President in Ankara when he announced the deal. That is not a bluff – it is a sealed deal,” Weafer said.
Closer economic and political ties with non-Western countries, including with Turkey, now makes much more sense for Putin’s Kremlin than trying to improve or maintain relations with countries tightening sanctions and damaging Russia.
“Switching to Turkey makes more sense for Russia when it comes to barter. Turkey is not interested in being part of the sanctions regime and can be a substitute supplier for some items, such as food, now blocked from Europe and the US,” Weafer said.
Turkey may also be a potential member of an expanded structure involving the emerging economies of Brazil, Russia, India, China and South Africa (BRICS)although now that it is on its way to being an important energy supplier to the EU the officials in Brussels may be more willing to talk about future cooperation with Ankara, something that they have been reluctant to do, Weafer said. “What’s that expression? Oh yes, ‘Be careful What You Wish For,’” he added.
http://www.neurope.eu/article/south-stream-dead-putin-pushes-turkish-stream