Russia is conducting intense negotiations with the states that could become transit nations, namely, Greece, Macedonia, Serbia, Hungary and Austria, Russian Energy Minister Alexander Novak said.
"Russia is conducting intense negotiations with the countries that could become transit nations. But I would like to emphasize that this is a task that the EU and the European Commission must decide for itself," he said.
On 7 April, Budapest held a meeting of the foreign ministers of Hungary, Greece, Macedonia, Serbia and the Minister for European Affairs of Turkey, where the Joint Declaration on the Strengthening of Energy Cooperation was signed. "We have expressed our support for the creation of a commercially viable option to diversify routes and sources for transportation of natural gas from Turkey through the territories of our countries to the countries of Central and South-Eastern Europe and other countries," the document says.
According to the authors of the declaration, it will enable the partnering states to support the energy markets of Turkey and the EU through the Southern Gas Corridor as well as open up new opportunities for economic development of the region through the connection of the gas infrastructure of the five countries with financial support from the EU.
In addition, the parties intend to improve the performance of gas storage facilities in order to facilitate the seasonal balance and enhance energy security in case any gas supply shortage occurs.
A gas and oil analyst of Troyka-Dialogue, Valery Nesterov, told Vestnik Kavkaza that alternative routes are not known yet. "In the future there may be an offshoot branch in the north of Italy, as was planned for the South Stream project. But now, the supply of gas in the direction of the largest gas hub in Baumgarten is considered to be the main option," the expert said.He noted that, in economic terms, Brussels needs to expand cooperation with Gazprom, which de facto is a reliable supplier of natural gas and can offer it on a competitive basis."Now Russia is being pressured to retain its gas transit to Europe through Ukraine. But if it is impossible to establish the relationship between the two countries and the exporter offers another route, then it seems unreasonable to abandon it. Europe is quite a rich region, so they are willing to pay more for their energy security," Nesterov said. In his opinion, the problems have been created by the European side too, which does not demonstrate sufficient flexibility in the negotiations with Gazprom.Senior analyst of 'Uralsib Capital' Alexei Kokin noted that there is no route as such. "Today, Gazprom CEO Alexei Miller said that the company is ready to build the Turkish Stream to the border of Turkey and Greece. At the same time, he noted that Gazprom is ready to wait until the moment when there will be power on the other side. I remind you that the South Stream was cancelled due to the fact that the EU put forward certain requirements that Gazprom did not want to perform. The Turkish Stream risks facing similar problems. Of course, a thread laid on the territories of countries that are outside the EU would be the ideal solution, but it is impossible for obvious reasons. Therefore, the future route of the new pipeline outside Turkey remains unknown. Negotiations are still at a very early stage," Kokin concluded.
A gas and oil analyst of Troyka-Dialogue, Valery Nesterov, told Vestnik Kavkaza that alternative routes are not known yet. "In the future there may be an offshoot branch in the north of Italy, as was planned for the South Stream project. But now, the supply of gas in the direction of the largest gas hub in Baumgarten is considered to be the main option," the expert said.
He noted that, in economic terms, Brussels needs to expand cooperation with Gazprom, which de facto is a reliable supplier of natural gas and can offer it on a competitive basis.
"Now Russia is being pressured to retain its gas transit to Europe through Ukraine. But if it is impossible to establish the relationship between the two countries and the exporter offers another route, then it seems unreasonable to abandon it. Europe is quite a rich region, so they are willing to pay more for their energy security," Nesterov said. In his opinion, the problems have been created by the European side too, which does not demonstrate sufficient flexibility in the negotiations with Gazprom.
Senior analyst of 'Uralsib Capital' Alexei Kokin noted that there is no route as such. "Today, Gazprom CEO Alexei Miller said that the company is ready to build the Turkish Stream to the border of Turkey and Greece. At the same time, he noted that Gazprom is ready to wait until the moment when there will be power on the other side. I remind you that the South Stream was cancelled due to the fact that the EU put forward certain requirements that Gazprom did not want to perform. The Turkish Stream risks facing similar problems. Of course, a thread laid on the territories of countries that are outside the EU would be the ideal solution, but it is impossible for obvious reasons. Therefore, the future route of the new pipeline outside Turkey remains unknown. Negotiations are still at a very early stage," Kokin concluded.
