Monday, October 2, 2023
 
 

Russia Says Serbia Linked In To South Stream

- Advertisement -

The Russian-backed South Stream gas pipeline received a boost from Belgrade this week after Serbian Foreign Minister Ivica Dacic told his Russian counterpart Sergei Lavrov it is in Serbia’s national interest for the project to be built.

Lavrov said on June 17 in Belgrade he expected Serbia to begin building its leg of the Gazprom-led South Stream as planned in July, dismissing mixed signals last week about Belgrade’s commitment to the project. The Serbian section of the pipeline will ultimately have an annual capacity of 40.5 billion cubic metres while stretching for 422.4 kilometres.

“We confirmed our readiness for South Stream and the need to carry it out as it is the only realistic project for gas security in southeastern Europe,” Lavrov said after meeting Dacic in Belgrade. “All agreements remain in force and no changes have occurred,” he said. “We consider that everything will proceed as planned.”

Following Bulgaria’s announcement that it would freeze the construction of South Stream on its territory, Serbian Deputy Prime Minister Zoran Mijailovic said on June 9 that Serbia had to suspend the construction of the gas pipeline due to Bulgaria’s decision. But Serbian Prime Minister Aleksandar Vucic said later the same day that Serbia’s government has not taken a decision on South Stream.

Gazprom wants to build South Stream to ensure a reliable route of Russian gas to central and southern Europe, bypassing Ukraine. The pipeline will carry Russian gas via Bulgaria, Serbia, Hungary and Slovenia, reaching its full capacity of some 63 billion cubic metres per year by 2017. The total value of the project is estimated at some €16 billion.

But the European Commission has warned that the intergovernmental agreements between the EU transit countries and Russia may violate EU law.

However, EU Energy Commissioner Günther Oettinger said in Vienna on June 16 that a solution could be found for the project. “South Stream is a project that we indeed accept,” he said.

Alexander Kornilov, a senior oil and gas analyst at Moscow’s Alfa Bank, told New Europe on June 19 that Oettinger appears to soften his stance regarding South Stream.

Kornilov argued that the situation with Ukraine represents considerable risks to the stability and reliability of gas supplies and gas transit to Europe.

Following failed Russia-EU-Ukraine talks, Gazprom on June 16 cut off gas supplies to Ukraine as a payment deadline passed. Supply to Europe continued as planned.

“Europe has become much warmer in terms of its perception of South Stream and that means that probably now Russia has chances to discuss the potential exemption from the Third Energy Package,” the Alfa Bank oil and gas analyst said.

“Third-party access to the pipeline is possible and discussable but the question is who is going to use the pipeline besides Gazprom,” Kornilov said.

He reminded that Azerbaijan has already secured its access to the European markets through the construction of the so-called Southern corridor via the Trans Anatolian Pipeline (TANAP) and Trans Adriatic Pipeline (TAP). “Apart from Azerbaijan – from Azeri gas – I don’t really see any alternative suppliers who could be interested in using the South Stream. The situation looks similar to Nord Stream where there are no any other alternative suppliers,” Kornilov said.

follow on twitter @energyinsider

Previously on Energy Insider:

The Price of War: Iraqi Oil Soars

Scotland, Crimea, East Ukraine Eye Energy On Independence

Poland Spearheads EU Quest For Energy Independence

Putin: “Dasvidaniya” EU, “Ni Hao” China

EU Leaders Not Ready To Break With Putin

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Don't miss

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Europe’s lawmakers see opportunity for regime change a year after Iran’s latest uprising

On September 21, representatives of various political groups held...

Interest surges in Turkmen gas

Turkmenistan's huge gas reserves have been generating considerable interest from potential importers following Ashgabat's announcement in late July that it is open to the development...

European aviation industry embraces new jet fuel regulation

The European Parliament on September 13 approved a new law to increase the uptake of sustainable fuels, such as advanced biofuels or hydrogen, in...

Nairobi Declaration calls for global tax on fossil fuel trade, maritime transport, aviation

As the curtains came down at the Africa Climate Summit (ACS23), heads of state and government adopted the Nairobi Declaration, calling on world leaders...

Mongolia to expand its economic and trade partnerships

Mongolia, the landlocked mineral-rich country bordered by Russia and China - the world's two preeminent authoritarian-run nations, is looking to expand its economic, trade,...

Turkmenistan signals major change in energy-export stance

A big shift is brewing for Caspian Basin energy exports. In a diplomatic about-face, Turkmenistan has signaled its readiness to develop a Trans-Caspian pipeline...

Can Central Asia escape China’s debt trap?

While Washington focuses on the war in Ukraine, Russia and China seek to expand their influence in regions where the US is not sufficiently...

Kazakhstan’s Deputy FM says EU & US ties remain strong as Central Asia’s largest country emerges as regional power

In the three-plus decades since Kazakhstan emerged as an independent nation from the ashes of the Soviet Union's 1991 collapse, the Central Asian giant...

Energy crisis prompts SMEs to boost renewables, energy savings

The energy crisis, high prices and threat of supply disruption following Russia’s war against Ukraine has prompted many small and medium-sized enterprises (SMEs) to...