Russia will build South Stream gas pipeline only if Europe will have a demand in reduction of risks of transit through Ukraine, Russian Minister of Economic Development Aleksei Ulyukayev said onWednesday.
“If there is no demand, then we are not going to build the pipeline. But in this case the party that refuses of these possibilities will have take upon itself the risks of violation of guarantees of deliveries.”
South Stream gas pipeline has been initiated by Gasprom. The pipeline with the capacity of 63 billion cub.m. a year mist be laid from Anapa to the Bulgarian Varna through the Black Sea bottom and then onshore to the Austrian Baumgarten, where the gas hub is located. Its construction will allow reducing the transit risks during Russian gas deliveries to Europe, which arise during transportation of gas through Ukraine. Gasprom owns 50% share in the project, Italian Eni – 20%, French Electricite de France (EDF) – 15% and German Wintershall – 15% Cost of the project has been increased several times, according to the latest estimates of Gasprom released in October, the costs will total 23.5 billion Euro.
From the very begininng the goal of the South Stream was to reduce the risks of Russian gas transot through Ukraine. The gas conflict between Ukraine and Russia, which has been settled recently (the settlement appeared to be temporary), has proved that Ukraine is unreliable as a transit country. The Ukrainian authorities have actually passed the law, which allows suspension of gas transit any moment.
“If Russia decides not to build the South Stream, this will be most likely a political decision beyond economic logic and advisability. But Europe’s decisions concerning sanctions against Russia are also beyound the logic,” said Argus Vice President Vyacheslav Mishenko.
