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The price of no more Russian gas via Ukraine

Political disputes between Kiev and Moscow have seen EU supplies interrupted on two occasions in recent years; with Moscow justifying the Turkey decision by saying Ukraine is ‘unreliable’.

By: N. Peter Kramer - Posted: Tuesday, January 20, 2015

The EU should build new infrastructure to link up with a future Russia-Turkey pipeline or lose access to supplies.
The EU should build new infrastructure to link up with a future Russia-Turkey pipeline or lose access to supplies.

The EU should build new infrastructure to link up with a future Russia-Turkey pipeline or lose access to supplies. 


That was the clear message Russia‘s Gazprom head Alexei Miller had last week for the EU energy commissioner, the Slovak Maroš Šefčovič.  

The Commissioner, who was on his first visit to Russia to meet Miller and Russia’s energy minister Alexander Novak, said that he was ‘very surprised’. 

He added later: ‘I believe we can find a better solution. We don’t work like this… the trading system and trading habits –how we do it today- are different’. 

It is not known what the Russians reaction on this was, may be a smile, thinking of the EU ‘habit’ of trade sanctions against their country. 

The Gazprom’s boss commented later: ‘they have a couple of years at most to do this. In order to meet the deadline, the work on building new pipelines in the EU must start immediately. 

Otherwise, the gas could end up in other markets’.   About 80 percent of the EU’s gas imports from Russia come via Ukraine. 

Political disputes between Kiev and Moscow have seen EU supplies interrupted on two occasions in recent years; with Moscow justifying the Turkey decision by saying Ukraine is ‘unreliable’.  

The dragging negotiations between the two countries about the outstanding Ukrainian debt of billions for delivered gas were undoubtedly also herewith considered by Moscow. 

The announcement done by Miller was Russia’s second surprise on energy supply. In December, Russia said it won’t build the so-called South Stream pipeline via Bulgaria and Hungary to Italy in favor of a new project with Turkey. 

This decision came after the European Commission ordered the Bulgarian government to stop construction works of South Stream. 

Both South Stream and ‘Turkish Stream’ have strategic implications because they bypass Ukraine, which earns billions from transit fees and which is on the edge of bankruptcy. 

Will this increase eventually the price tag of the unprecedented and unconditional support the EU gives to the rulers in Kiev?  

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