http://www.neurope.eu/view_news.php?id=82114
It's Putin's pipeline now South Stream threatens EU, US projects Bulgaria jumped on the South Stream bandwagon on January 18, approving a draft agreement to put into effect a gas pipeline project designed to secure Russian gas supplies to the European Union. The agreement is a victory for Russian President Vladimir Putin since South Stream will undermine the EUbacked Nabucco project, which aims to supply gas from central Asia to Europe bypassing Russia. The agreement was signed by Russian Industry and Energy Minister Viktor Khristenko and Bulgarian Economy and Energy Minister Peter Dimitrov. Bulgarian and Russian representatives were working on the draft agreement until late at night on January 17, Bulgarian Prime Minister Sergei Stanishev said. Representatives were in Sofia two weeks prior to the visit of Putin negotiating the equity stakes. Moscow had rejected Bulgaria's attempts to negotiate a majority stake in the stretch of the pipeline that will pass through its territory, and the prospect of an agreement seemed uncertain. But a compromise solution was reached in Sofia on January 17, stating that both sides will have a 50 percent stake. "Our negotiations in Sofia yielded results that show that Russian-Bulgarian relations are continuing their upward march," Putin said. "We reached agreement on a number of important projects; this would not have been possible if we were not trusted partners." Medvedev said, "It is very important that the parties have shown willingness to compromise, and the draft that has been prepared reflects the balance of interests and makes it possible to move this difficult matter ahead." The South Stream project involves laying a pipeline from the Beregovaya compressor station near Dzhubga in Russia's Krasnodar territory across the Black Sea to the Bulgarian port of Varna. Gas would then be shipped in two directions: to southern Italy and to Central Europe. Italy's ENI is Gazprom's partner in laying the 900-kilometre offshore section of the pipeline. Other companies may also join the project depending on the countries through which the onshore pipeline sections pass. The pipeline could begin exporting gas in 2013. Gazprom CEO Alexei Miller told reporters in Sofia on January 18 that Gazprom is completing negotiations with Serbia on plans to build the South Stream gas pipeline. "Negotiations with Serbia are nearing completion today (January 18), and an intergovernmental agreement has been drafted," Miller said in Sofia. Besides rivalling Nabucco, South Stream will also enable Gazprom to bypass Ukraine for more of its gas exports to the EU, matching the similar proposed Nord Stream project, from Russia to Germany under the Baltic. South Stream, with an estimated cost of 10 billion Euro, will allow Gazprom to get a strong foothold in Southeast Europe, and strengthen its presence in the markets of Central and Western Europe, rivalling American and European plans to limit the EU's dependence on Russia. "There is no question in my mind that Russia is the largest gas player in Europe, so how could the Americans be close to that? Russia has a dominant position in the European natural gas market. They have the largest reserves; they have the largest infrastructure; they basically control the European gas market; we are not even close," Fadel Gheit, a senior oil analyst with Oppenheimer & Co in New York, told New Europe on January 18. "Gazprom is almost a quasi-state... so they have competitive advantage that European companies do not have. They (Gazprom) have bargaining power European companies do not have." In Sofia, on January 18, Russia, Greece and Bulgaria signed an agreement between stakeholders on setting up a company for the project to build the Bourgas-Alexandroupolis pipeline. The pipeline will transit Greece and Bulgaria and help reduce oil tanker congestion in the Bosporus and the Dardanelles. The agreement to build and operate the Bourgas- Alexandroupolis pipeline was signed in Athens on March 15. Participation in the International Project Company is distributed between Russia with 51 percent, Bulgaria with 24.5 percent and Greece with 24.5 percent. Putin's visit to Bulgaria brought energy and geopolitical changes in the Balkans. In addition to the pipeline agreements, Russia wants to buy Petroleum Industry of Serbia (NIS) and create a junction for Russian energy in the western Balkans. Serbia acknowledged that Gazprom's offer for a 51 percent stake in oil monopoly NIS is best, but is in no hurry to accept. Serbian Trade and Services Minister Predrag Bubalo was quoted by the press as saying that talks with Russia on energy cooperation are held continuously and there is no deadline for signing an agreement. Bubalo said the agreement would be signed, since it has such major significance for the future of both countries. Infrastructure Minister Velimir Ilic said Gazprom's offer for the NIS stake was the most acceptable. Analysts say there was a direct relation between Putin's visit to Bulgaria and Gazprom's plan to buy NIS. Putin appears to be winning the energy predominance game in Europe. "It is like a big chess game and everybody is angling at the other guy," Gheit said. "It goes without saying Putin is definitely cementing his position slowly. He is very patient; he has a strategy; he is following it and his parliament is basically rubberstamping everything he says." But the US-based analyst said Washington is not going to give up without a fight, and is already pressuring European states not to accept Moscow's offers. "The US is putting pressure on everybody. Again, it's like the old days of the Cold War," Gheit said. "Energy now is the weapon of the day. It is no longer missiles; it is energy. Those who have energy resources are in the driver's seat. Energy is scarce; energy is precious; energy is the backbone of the global economy; and obviously the countries that have more control of energy resources enjoy an envious type of position. It goes hand in hand with policies and politics, and so Russia is playing the energy part." [Non-text portions of this message have been removed] -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: [email protected] Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. This message contains copyrighted material whose use has not been specifically authorized by the copyright owner. OSINT, as a part of The Intelligence Network, is making it available without profit to OSINT YahooGroups members who have expressed a prior interest in receiving the included information in their efforts to advance the understanding of intelligence and law enforcement organizations, their activities, methods, techniques, human rights, civil liberties, social justice and other intelligence related issues, for non-profit research and educational purposes only. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/osint/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/osint/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
