Economics

Russia informs EU about "South Stream" abandonment

12 december 2014 | 14:30

The EU Commission has received a confirmation from the Russian Ministry of Energy on Moscow's plans to abandon the "South Stream"

Южный поток, South stream
Russia confirms the EU about the "South Stream" rejection.
The EU Commission has received a confirmation from Russia that "South Stream" had been stopped, the Russia's Energy Minister, Alexander Novak informed his EU colleague, Vice President of the EU Commission, Commissioner for Energy, Maroš Šefčovič about this in a telephone conversation, according to the EU Commission's press service.

"Minister Novak has confirmed to the Vice President of the EU Commission, that Russia would not continue the "South Stream" project, the EU Commission's statement reports.

The conversation took place after the ministerial meeting of now former "South Stream" countries in Brussels on December 9, whose members, in particular, suggested that Russia's decision was not final, and asked Commissioner Šefčovič "to clarify this with the Russian side."

Since the explanation was received, the Commission has to start working on new solutions to ensure energy security of these states.

"We will intensify work with the countries of Central and Southeastern Europe on the development of a single gas market and diversify gas supply. These are the tasks for a future energy alliance, which is a priority for the new European Commission members", - concluded Šefčovič.

Read more: Israel offers Europe new gas pipeline project

President Vladimir Putin announced in early December that Russia rejects implementation of the "South Stream" and decides instead to concentrate its efforts on a new project – the construction of a similar pipeline to Turkey.

It should be noted that the right to cancel the project has only the South Stream Transport company (the main company in the project implementation). There are four shareholders in the consortium."Gazprom" owns 50%, Italian Eni – 20%, EdF French and German Wintershall – 15% each.

In turn, the Turkish president has already said that he sees how Turkey becomes the "energy hub of the entire region." Erdogan suggested to name the new pipeline "Turkish stream".

Source: Prime

No comments