Europe really blew this one. In what is sure to be remembered as one of the biggest f**k ups in EU policy history, Russia is withdrawing from South Stream and realigning with Turkey.
This is huge news!
First, Russia withdraws from South Stream as reported by RT:
Russia is forced to withdraw from the South Stream project due to the EU’s unwillingness to support the pipeline, and gas flows will be redirected to other customers, Vladimir Putin said after talks with his Turkish counterpart, Recep Tayyip Erdogan.
“We believe that the stance of the European Commission was counterproductive. In fact, the European Commission not only provided no help in implementation of [the South Stream pipeline], but, as we see, obstacles were created to its implementation. Well, if Europe doesn’t want it implemented, it won’t be implemented,” the Russian president said.
According to Putin, the Russian gas “will be retargeted to other regions of the world, which will be achieved, among other things, through the promotion and accelerated implementation of projects involving liquefied natural gas.”
“We’ll be promoting other markets and Europe won’t receive those volumes, at least not from Russia. We believe that it doesn’t meet the economic interests of Europe and it harms our cooperation. But such is the choice of our European friends,” he said.
The South Stream project is at the stage when “the construction of the pipeline system in the Black Sea must begin,” but Russia still hasn’t received an approval for the project from Bulgaria, the Russian president said.
Investing hundreds of millions of dollars into the pipeline, which would have to stop when it reaches Bulgarian waters, is “just absurd, I hope everybody understands that,” he said.
Putin believes that Bulgaria “isn’t acting like an independent state” by delaying the South Stream project, which would be profitable for the country.
He advised the Bulgarian leadership “to demand loss of profit damages from the European Commission” as the country could have been receiving around 400 million euros annually through gas transit.
Europe just shot itself in the head in a very big way….and it gets better (or worse, for Europe that is).
Remember Turkey, that big Muslim country that has been d**ked teased with EU membership for the past 30 some years…well it looks like Turkey is not only realigning away from the EU, but sticking it to Europe while doing such realigning, because after today (and given Ukraine’s complete meltdown), a big part of South Europe’s energy will fully depend on Turkish transit lines.
RT reports the second big piece of news…
Gazprom CEO Aleksey Miller said the energy giant will build a massive gas pipeline that will travel from Russia, transit through Turkey, and stop at the Greek border – giving Russia access to the Southern European market.
The pipeline will have an annual capacity of 63 billion cubic meters. A total of 14 bcm will be delivered to Turkey, which is Gazprom’s second biggest customer in the region after Germany.
The new project will include a special hub on the Turkish-Greek border for customers in southern Europe.
While the pipeline will be registered as a Russian company, Miller said that Gazprom will “consider offers from Turkish partners if they express an interest in buying into the project.”
For now, the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline, Vladimir Putin earlier said during a joint press conference with his Turkish counterpart, Recep Tayyip Erdogan. Last year, 13.7 bcm of gas were supplied to Turkey via Blue Stream, according to Reuters.
Moscow will also reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said.
- America: South Stream is gone. Europe will lose Russian gas over time, leaving the EU at America’s total energy mercy. European citizens will pay a much higher price for gas and oil…paid to American (and American supported) energy companies
- Russia: They can now move on and they already have. China is sealed up, now Turkey. Energy will always have buyers and two big deals have been sealed. Added bonus, Russia can stop dealing with the wanker losers that make up the EU.
- Turkey: Disrespected and teased by the EU for decades, Turkey will now be a major energy transit hub to Europe, and beyond. Should South Europe need gas, then it has to deal with Turkey now. Suck on that Brussels!
- Ukraine: You are about to see Ukraine turn into a rump state. Once gas stops crossing through Ukraine pipes, the country will become a wasteland of nothingness. They fell hook, line and sinker for the American / EU fairytale. With Turk Stream a reality, Ukraine has lost its strategic energy significance, and the fairytale is in fact a horror freak show.
- Bulgaria, Serbia, Austria, Italy: All these EU countries would have made big time revenue, and employed lots of people in need of jobs, by being links in the South Stream chain. Now they will have to pay the Turk Stream toll booth to secure their energy needs.
- Greece: Turkey and Greece are far from BFF status. Throw in the Cyprus problem and you can now see how being subservient to Turkey for your energy needs could be considered a bit of a security problem. After 8 years of austerity, Brussels really f**ked Greece big time by blowing apart South Stream.
- Brussels: They sold out the prosperity and security of Southern Europe so they could appease their US masters, line their pockets, and most likely avoid some NSA scandals. Europe forfeited energy security, revenue, jobs and so much more over a Ukraine over run with nazi elements. Brussels leadership should be held accountable for this betrayal.