29 December 2011

UKRAINE / RUSSIA / TURKEY: South Stream Gas Pipeline Approved By Istanbul.

                                            WSJ...with Map

      Moscow took a giant step...in its efforts to put pressure on Ukraine's gas pipeline...when Istanbul agreed to permit Gazprom's South Stream pipeline to be built across its territories.
     The project will give Russia a straight shot into Europe under the Black Sea...bypassing  Ukraine.
    South Stream could be completed by 2015.
    Moscow and Kiev have long been disputing nat gas rates.
    Ukraine is presently paying $400/mcm...but insists that a fairer price is $250/mcm.
    It is threatening to take Russia to international mediation...and even switch back to coal.
    The EU is backing a costly competing pipeline...the Nabucco...from the Caspian to Austria.
    Nabucco's approval may be announced in 2012.