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European Union

Russia and EU May Reconsider Trans-Border Infrastructure Projects, Including South Stream Gas Pipeline

Strategic Insights

— 2 min read

Russia and the European Union may return to discussions on trans-border infrastructure projects, including the South Stream gas pipeline, after experts study potential conflicts of interest between the EU's 3rd Energy Package and ongoing infrastructure projects. The development could see the EU's 3rd Energy Package made more flexible for major infrastructure projects. Russia has proposed that the South Stream gas pipeline be granted the status of 'Trans-European Network' (TEN) or work towards acquiring a legal regime for trans-border projects, which would allow it to bypass European and national regulators.

Key Takeaways:

  • Russia's Energy Minister Sergei Shmatko stated that Russia and the EU may return to discussing trans-border infrastructure projects, including the South Stream gas pipeline, after experts study potential conflicts of interest between the EU's 3rd Energy Package and ongoing infrastructure projects.
  • EC Commissioner for Energy Gunther Oettinger said that the EU is not abandoning the 3rd Energy Package but could consider making it more flexible for major infrastructure projects.
  • A meeting of experts will be held to study how to ease the stipulations of the 3rd Energy Package for major infrastructure projects, including the South Stream gas pipeline.
  • Russia hopes to see the South Stream gas pipeline granted the status of 'Trans-European Network' (TEN) or work towards acquiring a legal regime for trans-border projects.
  • This would allow the South Stream gas pipeline to bypass European and national regulators and the 3rd Energy Package.
  • The meeting could take place next month or the one after, and all European and Russian regulators will participate.
  • The South Stream gas pipeline will be considered for TEN status after the experts meeting.
  • Russia may also appeal to EU countries separately to discuss the possibility of the South Stream gas pipeline being granted TEN status.

Statistics:

  • Russia has proposed the South Stream gas pipeline bypassing the EU's 3rd Energy Package to become a key transportation capacity for natural gas delivery to European consumers.
  • Two Gazprom (RTS: GAZP) pipeline projects, Nord Stream and Yamal-Europe, and the Nabucco project currently hold TEN status.
  • Russia's agreements with EU member countries include lobbying for the South Stream gas pipeline to be granted TEN status.

Sources:

  • Interfax, Dec 1
  • Energy Minister Sergei Shmatko
  • EC Commissioner for Energy Gunther Oettinger
  • International Herald Tribune, (no date)

Note: The date "Dec 1" was found in the original text; no other dates were added to the source. If there was an original date provided, it would be preserved and presented.

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