Russia: No Backing Down on South Stream
Russia does not intend to abandon the implementation of the South Stream gas pipeline project whatever proposals for participation in the Ukrainian gas transportation system may be made to it, Russian Energy Minister Sergei Shmatko said on Thursday.
"At this point there is no such question on the agenda at all, we have no bargaining. If someone has thought (and hopes) that some better conditions can be offered to persuade us to abandon South Stream, that person got it all wrong. We do not discuss this topic at all," he said.
Prime-Tass quotes Shmatko as saying Ukraine should get used to the conditions of competition and to a market environment.
He also commented on statements about the cost of the South Stream project.
"We are told this project is too costly and that the European customer does not need that gas. I would like to say gas will be sold in Europe at market prices and the European consumers should feel no worries about the cost of laying South Stream. This is a question for shareholders," Shmatko said.
Shmatko's comments are in response to Ukraine's proposition that its natural gas transport system, and not the development of the South Stream pipeline project, is the most efficient route to deliver Russian and central Asian gas to Europe.
South Stream, like the renovation of the Ukrainian gas pipeline system, is about diversifying gas supply routes. "I believe that our Ukrainian colleagues will have to get used to living in a competitive environment, in permanent market conditions," he said.
Ukraine and Russia are presently in discussions over gas supply matters, including renegotiation of the formula used to price gas shipments to Ukraine and the terms of a proposed venture between their respective gas monopolies, Naftogaz Ukrainy and Gazprom.
The Russian Energy Minister said Russia will build South Stream even if it is offered a stake in Ukraine's gas pipeline system on favorable terms, as has been suggested by Russia in the past.
"It's not even an issue. We aren't bargaining at all," he said.
Source: Itar-Tass