Posts
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.
