Published: 17 March 2011 - Upset by Turkish procrastination over the offshore section of the South Stream pipeline, Russia is warning that it may give up on the project altogether. But experts said Moscow could not afford to lose face over what is seen as the biggest political pipeline project of modern times.
Russia is considering the possibility of abandoning the South Stream gas pipeline project, which is designed to bring Russian gas to Europe by bypassing Ukraine, the Russian press writes today (17 March), quoting top officials in Moscow.
Talks held in Moscow yesterday (16 March) between Russian President Dmitry Medvedev and Turkish Prime Minister Recep Tayyip Erdo?an ended with no agreement on building a crucial offshore section of South Stream in Turkish territorial waters.
Russian Deputy Prime Minister Igor Sechin said the Turkish authorities had been expected to approve the construction on 31 October 2010.
In the absence an agreement, Gazprom and the Russian government are currently studying various options for a "cheaper version" of South Stream, Sechin said, including replacing the pipeline with a project based on liquefied natural gas (LNG), to be transported by ship across the Black Sea.
Last week, Russian Prime Minister Vladimir Putin demanded an investigation into the possibility of building an LNG plant on the Black Sea coast. According to Russian daily Kommersant, this latest development represents proof that the LNG project is not only seen as an additional option to South Stream, but could in fact replace it.
Turkey's delay in granting approval to the laying of pipes in its Black Sea territorial waters appears to represent a major obstacle to South Stream's construction. Turkey claims that it cannot give the go-ahead before receiving additional documentation from Gazprom, but Russia suspects that Ankara has other reasons for procrastinating.
Indeed, Moscow suspects Ankara is trying to trade its consent for a rebate on the price of gas imported from Russia.
In theory, Russia could alternatively lay the pipes through Ukrainian waters, but Kyiv is a staunch opponent of the project.
For the complete article, please see EurActiv.
Ignoring cross border impacts of large infrastructure projects will spark conflict along rivers, argues Peter King. National level environmental impact assessments that ignore cross border impacts are likely to create conflict between countries.
Peat areas have played a pivotal role in conflicts globally, and have also been a point of contention during post-conflict recovery. Communities in Southeast Asia as well as in the countries of the Congo are facing challenges as finding political solutions for this problem.
On a visit at short notice to Germany, Russian President Vladimir Putin has met with German Chancellor Angela Merkel to discuss a range of bilateral and international issues, including the conflicts in Syria and Ukraine, and the future of the controversial gas pipeline project Nord Stream 2. The pair met for the second time within just three months to talk about the project.
Australia’s new prime minister will not walk away from the Paris climate agreement, although his new policies now make it unlikely the country will meet its emissions reduction goal. Ongoing trade talks with the EU could also hinge on how climate policy continues to develop.