Putin: South Stream closed, Russia to boost coop with Turkey

ANKARA, Dec 2 (PRIME) -- The South Stream pipeline is closed, Russian President Vladimir Putin said late Monday blaming failed cooperation with the E.U. in the issue, but the project’s closure will allow the country to increase cooperation with other countries, including Turkey.

“Considering the fact that we have not yet received approval from Bulgaria, we think Russia cannot continue to implement the project in current conditions,” Putin said.

“And what will it be like? We will invest hundreds of millions of U.S. dollars, break through the whole Black Sea and stop before the Bulgarian border? … It means we will not implement it.”

“It does not correspond with European economic interests and hurts our cooperation. But it is the choice of our European friends,” Putin said, suggesting Bulgaria demand the E.U. redeem its economic losses.

“If Bulgaria does not act as a sovereign state – let it at least demand the Eurocommission redeem their lost benefit, because the direct income from transit to the Bulgarian budget only would have amounted to 400 million euros annually.”

Stopping the project means increased cooperation with other countries, including Turkey.

“We will redirect our resource flows to other regions, including the implementation of liquefied natural gas (LNG) projects,” Putin said.

“On suggestion from our Turkish colleagues…we will cut prices for the blue fuel by 6% from January 1, 2015…and will cut the prices even further depending on the implementation of large joint projects.”

Moreover, Russia is ready to build another pipeline to and through Turkey and construct a gas hub on its border with Greece, Putin added.

Gas giant Gazprom CEO Alexei Miller said the new pipeline will use the same compressing station which was built for the closed project – Russkaya. He added that the capacities of the new gas pipeline will amount to 63 billion cubic meters per year, 14 of which will be used for Turkey’s domestic consumption and the rest will be supplied to the border between Turkey and Greece.

“We are ready to consider Turkey joining the (new pipeline’s) project, if they show interest in it,” Miller said.

Russian Energy Minister Alexander Novak said separately the intergovernmental agreements for the implementation of the South Stream project are still in force, and Russia will comply with its obligations remaining a reliable gas supplier to the Europe.

He also said Turkey suggested the gas prices to be cut by 15%, “but to make it happen our companies should additionally work out the issues of joint projects. We are discussing the issues, and the 6% decrease from January 1 is only the first step.”

South Stream could run under the sea to the Bulgarian Black Sea port of Varna before extending overland through Bulgaria, Serbia, Hungary, and Slovenia to supply gas to Western Europe via Italy and Austria. The pipeline’s capacity could reach 63 billion cubic meters.

In June, Bulgaria suspended preparations for the construction of the pipeline on orders from E.U. authorities. They said that the pipeline laying must be suspended until the project is fully adjusted to the Union's legislation.

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