Putin: "Moscow is ready to return to South stream project, but only if "guarantees" are provided."

Putin: "Moscow is ready to return to South stream project, but only if "guarantees" are provided." (novinite).

Russian President Putin said on Thursday his country didn't feel offended about Bulgaria and other countries' decision not to carry through the South Stream gas pipeline project due to their lack of "manliness".

Meeting Hungarian Prime Minister Viktor Orbán in Budapest, he said Moscow was ready to return to the project - abandoned in December 2014 - but only if "guarantees" were provided.

What several countries failed to show courage about was defying the European Commission, TASS news agency quotes Putin as saying.

The Russian President chose Hungary for his first state visit for 2017 and who on Thursday arrived to Budapest for the second time in two years, said projects such as South Stream should be completely "depoliticized".

Before departing for the visit, he had suggested the options to join either Turkish Stream or Nord Stream would remain open to Hungary.

The Bulgarian Black Sea port of Varna was the landfall of South Stream, once designed to carry 63 billion cubic meters of gas to Central Europe via Bulgaria and Serbia.

But Sofia froze the construction of the pipeline in the summer of 2014, after a warning from Brussels, and for months refused to issue construction permits for the offshore section that enters Bulgaria's exclusive economic zone in the Black Sea. Putin then announced the project was considered to be over, pitching an alternative "Turkish Stream" instead.

The European Commission deemed South Stream incompatible with its Third Energy Package of liberalization, which unbundles gas supply from the ownership of the infrastructure, meaning Russia would have to allow other suppliers into the pipes.

Last week, a Russian official revived the issue of a "pipeline to Varna", as a second route of Turkish Stream, could be considered by Moscow if Sofia wanted to go for it.

His words followed months-long negotiations with Turkey over the Turkish Stream pipeline, which substantially reduced the project in scope compared to the initial idea, with Ankara being offered limited options to serve as transit destination.

Europe unlikely to buy Russian gas from Turkish stream, while Turkey might depend on Russian gas.

Europe unlikely to buy Russian gas from Turkish stream, while Turkey might depend on Russian gas. (Taz).

Likelihood of Russian gas supplies to Europe by Turkish stream pipeline is remote given the current state of play in EU- Russia relations, Constantine Levoyannis, head of the Greek Energy Forum's Brussels branch told Trend by email on Oct. 12.

This week an intergovernmental agreement on the Turkish Stream pipeline has been signed in Istanbul in the presence of both presidents. The agreement envisages the construction of two pipeline strings, each with a capacity of 15.75 billion cubic meters.

The first string will supply gas directly to Turkey, while the second is to be used to deliver gas to European countries through Turkey.

Levoyannis noted that the first stream supplying Turkish gas demand should come as no surprise.
“It is likely to happen. It makes commercial sense and the demand is there,” he said.

On the other hand, the expert noted that the likelihood of the second string to Europe materializing is remote, given the current state of play in EU Russia relations, adding that a top priority for the EU is the Southern Gas Corridor.

“To me the second announcement bears more of a political message towards the EU,” Levoyannis said.


Within the negotiation on the Turkish Stream this week, the parties also agreed on a mechanism by which to provide a discount on Russian gas for Turkey.

The agreement on gas price discount is interesting news, Levoyannis said.
“This could have a significant macroeconomic impact - particularly on gas on gas competition,” he noted. Hmmm....I'm sure Iran won't be happy with this.

Islamist Turkey ready to control Russian gas flow to Europe.

Islamist Turkey ready to Blackmail Europe by transporting Russian gas through Turkish Stream pipeline. (RT).

Turkish President Recep Tayyip Erdoğan said the Turkish Stream pipeline will be implemented swiftly. The gas project to deliver Russian gas to Europe through Turkey had been postponed several times.

The Turkish Stream project was also shelved late last year due to the conflict between Moscow and Ankara after Turkey shot down a Russian warplane in Syria. However, with the thaw in relations between the countries, the project may be given another life. Hmmm.....And Europe thought Putin was bad

New Russian gas deals are "enough to make even a seasoned energy observer's head spin"

New Russian gas deals are "enough to make even a seasoned energy observer's head spin". (csis).

In the twelve months since the collapse of global oil prices and the imposition of Western economic sanctions against Russia, the number of new Russian gas export project announcements has skyrocketed.

Only last month, Gazprom signed a memorandum of understanding (MOU) with three European companies to build a second large gas pipeline system under the Baltic Sea called Nord Stream II.

This was preceded by the announcement in December by President Vladimir Putin himself of the cancellation of the ambitious South Stream gas pipeline under the Black Sea to be replaced by an equally grandiose project, soon to be dubbed Turkish Stream.

In Kurdish a donkey is called: 'Kerdogan'

Both Nord Stream II and Turkish Stream are designed to bypass the critical transit route through Ukraine utilized by 40 to 50 percent of Russia’s current gas exports to Europe.

Russia and Gazprom’s position on whether gas transit through Ukraine will continue after the current agreement expires in the not-too-distant future flip-flopped within a matter of weeks recently – first proclaiming that all transit will cease after 2019, then declaring that negotiation of a new deal has been ordered by President Putin.

In the past year, we have also seen the supposed conclusion of not one but two large gas deals with China. Together with numerous previously proposed liquefied natural gas (LNG) and export pipeline projects, this picture is enough to make even a seasoned energy observer’s head spin.

To make matters worse, the mainstream press tends to report each one of these announcements, no matter how fanciful, as if they are all realistic projects that will be completed by the notional target dates even as Russia’s financial position continues to deteriorate.

The total cost of these projects is somewhere between $150 and $200 billion, and it is unlikely that Russia (even together with its prospective partners) could muster the necessary capital to complete most of them amidst Russia’s low oil revenue, budget deficits, and falling GDP.

Instead, the raft of announcements, postponements, and cancellations in June and July of 2015 suggest that Russia is groping for a viable gas export strategy. Read the full comprehensive report here.

Ankara Says Turkish Stream Talks with Russia Now Frozen.

Kurds tell me a donkey in Kurdish is called 'Kerdogan' 

Ankara Says Turkish Stream Talks with Russia Now Frozen. (NO).

Turkey and Russia have frozen their talks over the proposed Turkish Stream gas pipeline project due to disagreement over a gas price discount, a Turkish government official has said.

“The parties have not ended the talks, but frozen them,” Turkish news daily Hurriyet quoted Energy Ministry Deputy Undersecretary Sefa Sadık Aytekin as saying on Thursday. “We can’t move forward in the negotiations at the moment.”

While Moscow insisted that talks on the discount to the price of deliveries of Russian natural gas to Turkey should be a prerequisite for the Turkish Stream project, Ankara only saw the talks as a starting point, according to the Turkish official.

Aytekin also said that Turkey had increased the gas price discount sought from Russia to 10.25% from its initial level of some 6%.

Turkey’s Interim Energy Minister Ali Rız Alaboyun said on Friday that it seems unlikely for the two sides to move their negotiations forward until a new elected government takes over in Ankara after the snap parliamentary elections scheduled for November 1, according to hurriyetdailynews.com. Hmmm.....Flashback MFS June :Turkish Stream became 'Dead Stream' in Baku?

Gazprom signs key Nord Stream-2 deal with EU companies, avoids need for gas transit through Ukraine.

Gazprom signs key Nord Stream-2 deal with EU companies, avoids need for gas transit through Ukraine. (RBTH).

Russia’s gas giant Gazprom has signed a binding shareholders’ agreement with European energy companies for the construction of the Nord Stream-2 pipeline from Russia to Germany. The landmark deal was inked at the Eastern Economic Forum, held in Russia’s far eastern city of Vladivostok on Sept. 3-5.

Gazprom will own a controlling stake, while Germany’s E.ON and BASF/Wintershall, Austria’s OMV and Royal Dutch Shell will receive 10 percent each, while France’s Engie will receive 9 percent.

Economic interests take priority

In itself, the signing of the shareholders’ agreement for Nord Stream-2 is already evidence that the EU, as before, has no common position either on relations with Gazprom as a whole or on today’s most pressing issue – that of gas transit through Ukraine.

The largest power companies in the UK, France, Germany and Austria signed the project, whose implementation will minimize the transit of gas through Ukraine, which all these states continue to support politically. However, the agreement is contrary to the position of Brussels; according to Vice-President of the European Commission Maroš Šefčovič, there is no need for any gas pipelines bypassing Ukraine.

“Germany believes that Ukraine should be supported, but the path to democracy and reform is very long, and we are losing time; the Ukrainian gas transportation system must be modernized, but no one is ready to invest,” said Alexander Rahr, research director of the German-Russian Forum, adding that plans for Nord Stream-2 do not violate EU law, including the Third Energy Package.

Southern Europe left high and dry

The shareholders’ agreement is a serious blow to the south-eastern countries of the EU, which were prevented by the United States and the European Commission last year from building the South Stream pipeline, intended to supply Russian gas to Southeast Europe via an undersea pipeline and a distribution hub in Turkey.

Now it is proposed to build a gas pipeline which, with a capacity of 55 billion cubic meters a year, which will bring billions of dollars in transit fees not to Bulgaria and Hungary, but to Germany and the Czech Republic. In addition, virtually all Russian gas will reach Europe through Germany, providing German gas pipeline companies with stable income for decades.

“The participants of South Stream – Bulgaria, Greece and Italy – are the countries that do not have enough weight to make decisions contrary to the general political line, but Germany will be able to,” said Fyodor Lukyanov, head of the Council for Foreign and Defense Policy, an independent Moscow-based think tank. Hmmm.......Guesss the Turkish stream will remain a 'Turkish dream'? Read the full story here.

Nabucco 2.0? - New route for Russia'n gas to Europe bypassing Ukraine jointly with Gazprom.

Nabucco 2.0? - New route for Russia'n gas to Europe bypassing Ukraine jointly with Gazprom.(Euractiv).

A new version of the defunct Nabucco gas pipeline project is being prepared, this time based on the transport of Russian gas, Austria's Die Presse has learned. Ironically, the original concept of Nabucco was precisely to carry gas from other sources than Russia.

According to the newspaper, Austria's OMV energy company is planning a new route for Russian gas to Europe bypassing Ukraine jointly with Russia’s Gazprom.

The new route appears to resurrect the defunct Nabucco West project, with one major difference: instead of carrying Azeri gas, it will transport Russian, and possibly Iranian gas, via Turkey, Bulgaria, Romania and Hungary to the Baumgarten gas hub in Austria.

Nabucco West - a 1,326-km pipeline with a 122-cm diameter - was to take the gas from the Turkish border across Bulgaria to Romania and Hungary to the gas hub of Baumgarten near Vienna. The project was shelved in June 2013 after a consortium managing the gas, which is expected to be pumped from the offshore Shah Deniz II gas field in Azerbaijan, was awarded to the Trans-Adriatic TAP pipeline.

Now Russia is planning to bring gas to the European territory of Turkey and says it’s up to the EU to decide how to transport it further.

But in reality Russia is devising plans for a so-called Tesla pipeline across Greece, Macedonia, Serbia, Hungary to Austria.

Such a project, however, would need more time to be realised, compared to the Nabucco project, which was in an advanced phase before it was shelved.

Most of Gazprom’s clients have gas contracts which specify Baumgarten as the delivery point.

Three independent sources have reportedly confirmed to Die Presse that the new Nabucco project would be promoted by Reinhard Mitschek, the former managing director of the Nabucco consortium, in which OMV, Hungary’s MOL, Romania’s Transgaz, Bulgaria’s Bulgargaz, Turkey’s Botas and Germany’s RWE each held 16.67%. Hmmm.........Seems once again i was right earlier this week when i said 'Turkish stream has become dead stream'.Read the full story here.


Update:    More on the 'Turkish stream' story here.

Turkish Stream became 'Dead Stream' in Baku?

Turkish Stream became 'Dead Stream' in Baku? (Taz). By Rufiz Hafizoglu.

The European Games that kicked off on June 12 in Baku are already unforgettable not only for its grand opening ceremony, but also for the fact that Azerbaijan’s capital, after the opening of the Games, hosted a meeting of the presidents of Turkey and Russia.

The meeting discussed the Syrian crisis and the construction of the Turkish Stream gas pipeline.

So, the fate of the Russian project, the Turkish Stream, was decided exactly in Baku, and the meeting of the two presidents was far more important to the Russian side, rather than to the Turkish.

There are a number of reasons for this. One of them is that after the results of the Turkish parliamentary election came out, the Russian energy projects in this country found themselves in serious jeopardy.

So far nothing is known about when a coalition government will be formed in Turkey, and with what party this is going to happen. But a number of parties in Turkey have already advocated the revision of Russian energy projects, including the construction of the Akkuyu nuclear power plant.

No matter how the meeting went on between the presidents of Russia and Turkey behind the closed doors in Baku, it is difficult to assert that Erdogan was able to give guarantees to the Russian leader on the Turkish Stream.

Because the Turkish Stream’s fate is no longer in the hands of the Justice and Development Party (AKP), but lies in the hands of the party with which the AKP will form a coalition government.

Not only the project for construction of Akkuyu nuclear power plant, but also the Turkish Stream project is under threat. Although in order to protect Russian projects, Russian media says that allegedly, there are no problems in the implementation of Turkish Stream project, it is not true. First, there are no obligations between Ankara and Moscow on construction of Turkish Stream and Turkey’s ambassador to Russia Umit Yardim also proved that in May.

Second, to date, Gazprom hasn’t appealed to the Energy Market Regulatory Authority of Turkey. Without the license of this authority, it is impossible to sell oil and gas, or transport hydrocarbons on this country’s territory.

Moreover, earlier, Turkish Ministry of Environment and Urban Planning told Trend that Russian Gazprom hasn’t appealed to them for an environmental impact assessment of the Turkish Stream project.

'Islamist' Turkey interested in gas supply from Iraq to Europe.

'Islamist' Turkey interested in gas supply from Iraq to Europe.(Taz).

Turkey is interested in supplying energy from Iraq to European markets, Turkish Deputy Minister of Energy and Natural Resources Sefa Sadik Aytekin told Trend.

He said Ankara is greatly interested in Iraq’s gas being supplied via the Turkish gas infrastructure, although at present, there is no pipeline between Iraq and Turkey.

“Ankara and Baghdad will begin its construction, as soon as they agree on the supply of Iraqi gas via Turkey to the European markets,” he said.

Earlier, it was reported that the construction of a gas pipeline between Turkey and Iraq will start in 2016. Its capacity will be 30 billion cubic meters.

He said that if the additional gas supply from Iraq exceeds 30 billion cubic meters, Turkey will be able to transport these volumes to the European markets.


Iraqi Oil Minister Adil Abdul-Mahdi has said Iraq has great potential for joining the Trans-Anatolian Pipeline (TANAP) project.Hmmm.....In case you doubted why EU parliament love Erdo, it's all about cheap Gas, Human rights and freedom of speech not so much.

Russia's potential problems with gas supply via Turkish Stream

Russia's potential problems with gas supply via Turkish Stream.(Taz).

Russia can encounter problems with gas supply via the Turkish Stream, Sergey Pravosudov, director of the Russian National Energy Institute, told Trend.

He recalled that Russia and the European countries have long-term contracts on gas supply, most of which are active until 2019, the year when the term of the contract for the transit of Russian gas through Ukraine expires.

"The gas delivery points are indicated in these contracts,” the expert said. “They are not on the border between the EU and Turkey."

Earlier, Russian Energy Minister Alexander Novak and Gazprom head Alexey Miller said that Russia will stop gas transit to Europe through Ukraine from 2019. Afterwards, the gas will be supplied via the Turkish Stream to the border of Turkey with the EU.

“If Russia refuses to continue supplying gas to Europe via a route through Ukraine after 2019, it will be violation of the contracts that expire later than those signed with several countries,” he said.

He said that it is possible to solve this problem only through a dialogue between the supplier and the buyer and the renegotiation of terms of existing contracts.

At the same time, he said that this would be difficult to do, because these European countries will suffer from political pressure.

“The United States put pressure on the European Commission, the European Commission puts pressure on the countries that are members of the EU,” said Pravosudov. “Therefore, the external pressure will hinder the implementation of this project.”

He went on to remind that Russia decided to refuse to supply gas through Ukraine because it doesn’t consider this route reliable in the long term*. He said that Russia's position is in the fact that there is a civil war in Ukraine and the country is a step away from bankruptcy.

Pravosudov said that Ukrainian Naftogaz is also on the verge of bankruptcy, because it shows the multibillion-dollar losses each year. He said that only in the first quarter of 2015, the loss of Naftogaz accounted for $1 billion.

“Since Naftogaz is state-owned, it is subsidized by the budget, but the budget lives only at the expense of loans,” said the expert. “Accordingly, if Ukraine is declared bankrupt, it means that Naftogaz is also automatically declared bankrupt.”

Moreover, Pravosudov said that also, investments should be made in the pipeline that runs through Ukraine, adding that Ukraine has no funds and it is unknown who will undertake these expenditures.

For all these reasons Gazprom proposes a bypass route through Turkey, said the expert. He added that however, in this case, such a question arises: how to deliver gas from EU borders to consumers?

Pravosudov said that in order to deliver gas to small countries such as Greece, Bulgaria, Romania, the existing infrastructure can be used by putting it into operation in a reverse mode.

But the main gas purchasers are the other countries such as Hungary, Austria, Italy and new infrastructure is needed to deliver gas from Turkish borders to the consumers in these countries, the expert added.

This infrastructure faces the same problems as the South Stream project before, Pravosudov said.

“The key problem due to which Gazprom refused from the launch of the South Stream gas pipeline is that the European Commission didn’t offer an exception from the rules of the Third Energy Package for this project and demanded its implementation in accordance with these norms,” said the expert. “This would mean that Gazprom was to arrange the construction of this pipeline, and then to give 50 percent to someone, to some of its rivals.”

Pravosudov said that naturally, such a thing didn’t suit Gazprom, especially since the competing project TAP got such permission.

“Now, Gazprom doesn’t want to build gas pipelines in Europe, as it understands that it won’t be granted exceptions to the rules of the Third Energy Package,” said the expert.

He also said Gazprom suggests that the companies from those countries should solve the issue with regard to the infrastructure by themselves.

“It is not yet clear whether they will agree to build, or not,” Pravosudov added.

At the same time, he said, the current EU sanctions against Russia won’t affect the implementation of the Turkish Stream project, since the sanctions don’t apply to Gazprom, and don’t interfere with its work.

“As for example, recently Gazprom attracted a loan from Italy, despite of the anti-Russian sanctions,” Pravosudov reminded.

Regarding a possible construction of pipelines from the borders of Turkey and EU, the expert said the sanctions won’t affect them either, since it is assumed that they will be built by European companies in the EU. Hmmm........*Come Winter 2015 Ukraine's Gas reserves are as good as empty, this will blow.

Related: 

'SURPRISE!' - Ankara not to build Turkish Stream.

'SURPRISE!' - Ankara not to build Turkish Stream.

'SURPRISE!' - Ankara not to build Turkish Stream.(Taz).

Turkey will not take part in the construction of the Turkish Stream gas pipeline, Turkish Minister of Energy and Natural Resources Taner Yildiz said in an interview with TRT Haber TV channel.

After the construction, Turkey is expected to become a co-founder of the joint Russian-Turkish company,” he said. “The company will be established in the province of Edirne. The onshore part of the pipeline will end there.”

Turkish Stream envisages transportation of gas from Russia to Turkey through the Black Sea. Russia’s Gazprom company and Turkish BOTAS signed a memorandum of understanding on construction of the pipeline on Dec.1, 2014.

The pipeline’s pumping capacity will be 63 billion cubic meters.

The 1,100 kilometer-gas pipeline will consist of four branches and supply 47 billion cubic meters of gas to the Turkish-Greek border.

A gas hub is expected to be created on the border between Turkey and Greece.


The EU countries must independently create their own gas transportation facilities to receive this gas in their territories. Hmmm.....Putin should have known better,  given the Turks their track record that they would stab him in the back.

Russia's Armenian Genocide statement might endanger Turkish Stream.

Russia's Armenian Genocide statement might endanger Turkish Stream. (Taz).

Despite the fact that the Turkish authorities urged for justice regarding the 1915 events, such countries as Russia and France blindly chose to hold Armenia’s side.

Russian Foreign Minister Sergey Lavrov, commenting on the visit of President Vladimir Putin to Yerevan, said that “each country makes decisions on its own, and Russia, in turn, made this decision a long time ago.” This justification could have calmed Ankara down, if not for Putin's words that the 1915 events are the so-called Armenian genocide. Ankara expressed serious resentment.

Turkish Prime Minister Ahmet Davutoglu, commenting on the visit of heads of Russia and France to Yerevan in order to participate in activities in connection with the “centennial” of the so-called Armenian genocide, said that this decision casts doubts on the neutrality of the OSCE Minsk Group.

It is impossible not to agree with it, despite the fact that the Russian side said that Putin's visit to Yerevan would not affect relations with Ankara.

"It is quite natural that the president was with other counterparts in Yerevan,” spokesman for the Russian president Dmitry Peskov said. “It is very important to thoroughly examine President Putin’s speech. It is also very important not to forget that at the same time, Turkey is our strategic partner. We have diversified relations. We believe that the prospects for the development of our relations are wide."

This will not affect the construction of the Akkuyu nuclear power plant, however one must not forget that there is also the Turkish Stream project which Russia greatly needs.
Turkey has already made a statement that it will reconsider cooperation with a number of countries after April 24 that have lost neutrality on the issue related to the events of 1915.
Of course, along with Europe, Russia is also on the "black list" of Ankara. It is not ruled out that after President Putin’s visit to Yerevan and his statements about the events of 1915, Ankara will reconsider the issue of the Turkish Stream construction.

The issue of implementation of Turkish Stream project causes controversy in Turkey. The main reason is Russia’s demand from Turkey to make additional concessions. Media hasn’t specified what kind of concession it is, but this led to refusal of Turkey’s BOTAS company from signing an agreement on discount for Russian gas delivered to Turkey.

Although the sides were expected to sign the discount agreement in March 2015, Turkey hasn’t signed it so far. Another disputed issue is that Russia has completely isolated Turkey’s BOTAS company from the construction of the Turkish Stream, which doesn’t meet Ankara’s interests.

All these facts suggest that the visit of Russian president to Armenia and his remarks about the “Armenian genocide” first of all put Russia’s energy interests under threat. Turkish authorities will unlikely miss the chance to use this for their purposes.

Crimean Tatar leader Dzhemilev banned from his homeland by Moscow court.

Crimean Tatar leader Dzhemilev banned from his homeland by Moscow court. (UAtoday).

Court in Moscow blocks iconic Crimean Tatar leader Mustafa Dzhemilev from Black Sea peninsula

The iconic leader of the Crimean Tatars has been banned from entering the Black Sea peninsula by Russia. A court in Moscow blocked Mustafa Dzhemilev from the Russian-occupied territory for five years to 'ensure state security and safeguard public order', according to the Kharkiv Human Rights Group.

The 71-year-old, who is also a member of the Ukrainian parliament, will appeal the ruling, which prevents him entering the place of his birth.

During the Soviet Union, Dzhemilev was among many Crimean Tatars exiled from Crimea. He later led the homecoming of some 250,000 Crimean Tatars back to the Black Sea territory.

Last year the Crimean Tatars opposed Russia's annexation of the Ukrainian peninsula. Since then, there have been widespread reports of human rights abuses against the Crimean Tatar community. Hmmm.....My guess For Erdogan the 'Turkish stream' is worth way more then the Tatars. Putin knows what he's doing.......by the way Tatars are being called up in the Crimea for their 'Russian' Military service.