Mehmet Cetingulec writes: Russia cancelled the South Stream oil pipeline in December. Without the commission’s approval, Bulgaria declared South Stream could not cross its territory. Russia, upset with the Europeans’ position, responded with the Turkey Stream project.
Putin’s move surprised the Europeans. Federica Mogherini, EU foreign affairs and security policy chief, declared on Euronews TV that the Russian decision illustrated the urgent need for Europe to diversify its gas procurement channels. The scrapped project was to have been 3,600 kilometers (2,237 miles) long and would have transported gas to Croatia, Hungary, Serbia and Slovenia.
Andras Deak, of the World Economy Institute, told Euronews: “The European Commission, by explaining why reconciliation would be more beneficial to both sides, could induce Russia to take a step back and thus boost its own prestige as well.” Neither Europe nor Putin, however, chose to step back. In fact, Putin moved forward, on his new project, meeting in February with Hungarian Prime Minister to discuss Turkey Stream.
After keeping Hungary onboard, Putin met with Prime Minister Alexis Tsipras in Moscow April 7, Putin proposed that Turkey Stream provide natural gas via Greece to the central Europe countries of Austria, Hungary, Macedonia and Serbia. Putin noted that the project could earn Greece hundreds of millions of euros every year. Tsipras’ only objection was to the name of the project — Turkey Stream.
As with South Stream, the European Commission is not in favor of Turkey Stream. With debate continuing over the project, Russia issued a warning to the European Union on April 14. the CEO of Gazprom, said EU obstruction of Turkey Stream would be a grave mistake that might prompt Gazprom to suspend the project and redirect its natural resources to Asian markets. He said that for Turkey Stream to be ready by 2019, construction should have already begun.
Gas will be brought to Trachea [on the European part of Turkey], and the project will be financed by finding buyers from the spot market. Greece, Serbia, Macedonia and Hungary want to participate in this project, but if Russia and Ukraine fully sort out their problems, this project could be forgotten. In its current form, it is not really economical. There is no buyer other than Turkey.
On the other hand, Yardim believes the Russians will not go back on their word and that the Turkey Stream project will be realized. He said four pipelines will be laid to carry 63 billion cubic meters of gas annually to Turkey.
Yardim said Russia, in delivering natural gas to Europe’s border via Turkey Stream, does not anticipate encountering financial problems. Will Russia give up on Turkey Stream? According to Yardim, “I know that Russia has decided on this issue. I worked with Russians for 25 years. They don’t easily change their minds. I don’t think they will revert to South Stream.”
