12/27/11 19:35
(http://www.klassa.bg/)

Russia might withdraw from the construction of the South Stream gas pipeline


Russia might withdraw from the implementation of the project for the South Stream gas pipeline if the outcome of the negotiations with the Ukraine prove to be disadvantageous to Moscow, stated on Monday the Head of Russian Gazprom, Alexey Miller, quoted by Russian news agencies. If Russia gains control over the Ukraine's gas transmission system, the South Stream gas pipeline will simply become unnecessary, commented gazeta.ru. The implementation of the South Stream project depends on the outcome of the negotiations with Kiev since the project terms and conditions "have always been bound" with this country, acknowledged Miller to Interfax. According to him, the pipeline was designed as an alternative to the Ukrainian tube which transmits two-thirds of the gas exported to Europe by Gazprom.

Ukrainian officials confirmed for the website that Kiev is ready to sell the Ukranian gas pipelines to Moscow and argued that the preservation of these assets is not the grand project for the Ukraine. According to the e-edition, this is the first time when Russia has admitted that it might withdraw from the South Stream project if it improves its economic relations with the Ukraine.

A month ago, Gazprom decided to change its initial plans for the construction of the gas tube, after it gave up its intention to build a gas pipeline connecting Greece and Italy. Instead, Gazprom representatives announced that they will construct another conduit, which will not end in Austria, but rather fork t owards Northern Italy. At the moment, the pipeline's construction, which is expected to cost around €15 bn, includes Bulgaria, Serbia, Greece, Hungary, Austria, Slovenia and Italy. The construction project intends for the pipeline to be laid underwater in the Black Sea and the end point should be the Bulgarian sea coast in the area of Varna.

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