Why Was South Stream Gas Pipeline Ceased?
Posted: 07/16/2014 02:07:22 Edited: 07/16/2014 02:07:06 Clicks: 2252
With the relationship between Russia and Ukraine deteriorating sharply, the conflict between Russia and European countries on South Stream gas pipeline has been highlighted.
On April 8th, Oettinger, energy commissioner of EU said that EU had blocked conservation with Russian high level about South Stream gas pipeline. The program was facing with being ceased. In June, Bulgaria, Serbia stopped construction of South Stream gas pipeline in succession. However, Austria signed contract with Russia about South Stream gas pipeline in Austria. As the country where the gas pipeline passing through, Austria has different attitude from Bulgaria and Serbia.
South Stream gas pipeline is so important that involving vital interests of several countries. In June 2007, Gazprom and Eni in Italia launched South Stream gas pipeline jointly. Countries along the pipeline include Bulgaria, Serbia, Hungary, Slovenia, Croatia, Austria, Greece, Italia, having closed relationships with Russia. Meanwhile, France and Germany are also interested parties on pipelines. Because of Wintershall and EDF (Electricite De France) hold 15% of share of South Stream Pipeline Transportation Company. Russia signed contract with Bulgaria, Serbia, Hungary, Greece and Slovenia about the program on land. On December 7th, 2012, South Stream gas pipeline began to be built in Russia. It was estimated that the pipeline would supply gas in the first quarter of 2016 and go into full operation in 2018 which might be delayed.
South Steam gas pipeline has important geopolitics and economic significance. It is an important measure of Russian energy diplomacy and the target that EU suppresses Russia.
Firstly, South Stream gas pipeline is one of breakthroughs that Russia replies European sanctions. With crises in Ukraine, pro-Russia countries along the pipeline are helpful for Russia countering sanctions from the Western. They are also a shortcut that Russia alienates between Europe and the U.S. and gets through tight encirclement. In fact, the countries along the pipeline play a key role in easing sanctions of Western on Russia. Since 2014, the Foreign Minister of Italia, President of Serbia, President of Austria, Vice Prime Minister and Foreign Minister of Greece, Foreign Minister of Slovenia and Foreign Minister of Germany have called on EU carrying out sanctions on Russia carefully.
Secondly, South Stream gas pipeline can reduce transit risks, restraining tendency of nationalism in Ukraine and causing large geopolitical and economic effects. Transmitting capacity of the pipeline is predicted to reach to 35% of Russian exporting gas, which is significant for Russia. The pipeline can shorten distance and lower cost without passing through Ukraine. For that, it is against by Ukraine.
Lastly, South Stream gas pipeline can restrain diversification of energy source in EU and marginalize gas competitors in Caspian Sea and Black Sea. Nabucco gas pipeline launched in February 2002 is main competitor of South Stream gas pipeline. The pipeline crosses through Azerbaijan, Georgia and Turkey, transmitting gas from Central Asia or Caspian Sea Countries to Bulgaria, Hungary, Romania and Austria. But Nabucco gas pipeline supported by Europe and the U.S. was stopped in June 2013 after having been planed for nearly 11 years. Because South Stream gas pipeline has the advantages of abundant gas sources, short distance, low cost and difficulties and high viability.
South Stream gas pipeline is kaleidoscope of multi contradictions reflecting the contradictions between European Commission and member countries, countries in EU, Russia and Western, short-term sanctions on demand and lone-term energy security, economic interests and strategy game, diversification of energy strategy and path dependence.
On April 8th, Oettinger, energy commissioner of EU said that EU had blocked conservation with Russian high level about South Stream gas pipeline. The program was facing with being ceased. In June, Bulgaria, Serbia stopped construction of South Stream gas pipeline in succession. However, Austria signed contract with Russia about South Stream gas pipeline in Austria. As the country where the gas pipeline passing through, Austria has different attitude from Bulgaria and Serbia.
South Stream gas pipeline is so important that involving vital interests of several countries. In June 2007, Gazprom and Eni in Italia launched South Stream gas pipeline jointly. Countries along the pipeline include Bulgaria, Serbia, Hungary, Slovenia, Croatia, Austria, Greece, Italia, having closed relationships with Russia. Meanwhile, France and Germany are also interested parties on pipelines. Because of Wintershall and EDF (Electricite De France) hold 15% of share of South Stream Pipeline Transportation Company. Russia signed contract with Bulgaria, Serbia, Hungary, Greece and Slovenia about the program on land. On December 7th, 2012, South Stream gas pipeline began to be built in Russia. It was estimated that the pipeline would supply gas in the first quarter of 2016 and go into full operation in 2018 which might be delayed.
South Steam gas pipeline has important geopolitics and economic significance. It is an important measure of Russian energy diplomacy and the target that EU suppresses Russia.
Firstly, South Stream gas pipeline is one of breakthroughs that Russia replies European sanctions. With crises in Ukraine, pro-Russia countries along the pipeline are helpful for Russia countering sanctions from the Western. They are also a shortcut that Russia alienates between Europe and the U.S. and gets through tight encirclement. In fact, the countries along the pipeline play a key role in easing sanctions of Western on Russia. Since 2014, the Foreign Minister of Italia, President of Serbia, President of Austria, Vice Prime Minister and Foreign Minister of Greece, Foreign Minister of Slovenia and Foreign Minister of Germany have called on EU carrying out sanctions on Russia carefully.
Secondly, South Stream gas pipeline can reduce transit risks, restraining tendency of nationalism in Ukraine and causing large geopolitical and economic effects. Transmitting capacity of the pipeline is predicted to reach to 35% of Russian exporting gas, which is significant for Russia. The pipeline can shorten distance and lower cost without passing through Ukraine. For that, it is against by Ukraine.
Lastly, South Stream gas pipeline can restrain diversification of energy source in EU and marginalize gas competitors in Caspian Sea and Black Sea. Nabucco gas pipeline launched in February 2002 is main competitor of South Stream gas pipeline. The pipeline crosses through Azerbaijan, Georgia and Turkey, transmitting gas from Central Asia or Caspian Sea Countries to Bulgaria, Hungary, Romania and Austria. But Nabucco gas pipeline supported by Europe and the U.S. was stopped in June 2013 after having been planed for nearly 11 years. Because South Stream gas pipeline has the advantages of abundant gas sources, short distance, low cost and difficulties and high viability.
South Stream gas pipeline is kaleidoscope of multi contradictions reflecting the contradictions between European Commission and member countries, countries in EU, Russia and Western, short-term sanctions on demand and lone-term energy security, economic interests and strategy game, diversification of energy strategy and path dependence.
