What is South Stream? The South Stream project

Man exists in a constant information flow. Not every topic he tries to figure out on his own. Some are not interested, others are too complicated. However, many try to keep abreast of economic news. After all, the success of the state in this area depends on the standard of living of everyone. Everyone has become accustomed to the term "South Stream" for many years. He firmly entered our life. And what is the South Stream? Why is it so important for our country? Let's figure it out.

Trade relations with the West

We are not Jennifer Psaky, who does not particularly understand where the gas flows go. Therefore, we understand that Russia is not bound by ardent love with Europe. Between countries there is a brisk trade. In its subtleties and vicissitudes it is necessary to penetrate to understand what "South Stream" is. This is a system for pumping natural gas to consumers in European countries. It seems to be a very profitable project. However, its implementation is constantly slowed down. The European Union is putting forward new demands on Gazprom. You ask, so they do not need this resource? That's where all the fun begins. Of course, European enterprises need natural gas. This energy source is considered the most environmentally friendly. In addition, gas is the raw material for some industries. And conventional heating with it is much cheaper. So what's the problem? What is the South Stream for Europeans? Why are they so stubbornly resisting the implementation of the project?

Global market

To understand the obstinacy of Europe, it is necessary to look at the entire planet as a whole. After all, economic ties are not local. All states have the opportunity to choose their partners based on their own interests and benefits. A certain principle operates in the European Union. Countries are zealously watching not to be dependent on the monopolist. That is, on the local European market, the liberal principles are sacredly used. There must be competition, and a point. Let's say that there are no problems with oil in this sense. It is offered by various producing countries. In addition, "black gold" can be transported on ships. That is, for him the oceans are not an obstacle. A different situation with natural gas. There are technologies that make it possible to liquefy the blue fuel. But, firstly, it's expensive. Secondly, it is necessary to build special enterprises that allow to carry out the reverse procedure. The pipe is much cheaper.

Background

It is for certain not clear what "South Stream" is. The fact is that Europe has been using Russian gas for many decades. The first pipeline was built in Soviet times. He walked on the territory of now independent Ukraine. Then there were no political problems. We chose the optimal route. This cooperation was beneficial to everyone. Europe built factories and other enterprises, the USSR received the necessary currency for the purchase of technology. However, the collapse of the Union occurred. It was necessary to build new relations not only with Europe, but also between once fraternal republics. On the one hand, like agreed. Ukraine has become a transit country. For the use of its territory, it received good money and discounts on blue fuel. But then a big politics intervened in the process ...

Unreliable transporter

Events in Ukraine developed in spurts. In 2004, the first bell sounded, warning Gazprom about the complication of gas transit through the neighbor's territory. The next one was in 2009. Ukraine was shaking in the political sense. The authorities changed, and with them, those who influenced the transit. In order not to depend on an unreliable neighbor, Russia built a gas pipeline bypassing its territory. It works fine today. Its name is "Nord Stream". However, this pipe is not enough to meet the needs of all EU countries. The southern part of it is provided with blue fuel through the Ukrainian pipe. And the neighbor's appetites become more and more demanding. Here and there was a project "South Stream". That is, this is another gas pipeline that bypasses Ukraine.

Ways of gas supplies to Europe

South Stream is a gas pipeline to provide blue fuel to the countries of the Balkan Peninsula, Austria and Italy. It was first voiced in 2007. Since then a lot of necessary work has been done. Agreements were concluded, technical documentation was developed , routes were laid and so on. The European Union almost immediately began to brake a grandiose project. The matter is that "South Stream" is a gas pipeline, part of which was to cross the Black Sea. About nine hundred kilometers of pipe had to lie down. Beginning at the compressor station "Russkaya", the pipe was to leave near the city of Varna on the Bulgarian coast. In theory, thus, Europe and Russia were protected from transit countries, namely, from Ukraine and Turkey. However, the project was not destined to be realized.

Bulgaria - the reason for the closure of the project

Work on the construction of the "South Stream" was a screech. The European Union demanded all new approvals, put previously undeclared conditions. One of them was "The Third Energy Package". The essence of it was that the gas supplier can not be simultaneously the owner of the transport system. That is, it turns out that the recipient countries wanted to own the pipe. With this, Russia could not agree, since the reliability of the "foreign" transporter caused doubts. Especially since Gazprom was going to implement the construction at its own expense. Why share profits with others? South Stream, whose scheme was nevertheless agreed with some end users, was to begin operating in 2015. But then it turned out that Bulgaria does not issue a building permit on its territory. No exhortations on her did not work. The government of the country has refused huge profit from transit (about 400 million dollars) and has refused the necessary coordination.

South Stream is closed

In December 2014, the Russian president visited Turkey. Negotiations were conducted in different directions. The issues of gas transit were also touched upon. By this time, Russia had already built its own part of the pipeline, which is part of the South Stream. The transit scheme had already been revised by this time. First, the Crimea has already become part of the Russian Federation. Consequently, it became possible to reduce the cost of construction by laying a pipe through its territory. Secondly, Bulgaria has officially announced the rejection of the project. This immediately took advantage of Turkey. "South Stream" decided to close completely. This was in an interview about the results of the talks, said V. Putin. He also talked about the change in plans. During the talks it was decided that the South Stream project would be reoriented to the Turkish coast. This, by the way, will significantly reduce the cost of its construction, since it will shorten the length of the sea part.

South Stream through Turkey

Gazprom signed a new agreement with the corporation Botas Petroleum Pipeline Corporation. According to the new scheme, from the "Russian" pipe will pass on the bottom of the sea and will be released on the Turkish shore. Its technical characteristics do not change. Will be delivered all the same volume. Namely, 63 billion cubic meters of gas per year. Part of the fuel is used by Turkish enterprises. And Europe will buy the surplus, as planned. South Stream "will still reach its territory. But now bypassing Bulgaria. This country was the most "affected". After all, she now does not see either gas or money for transit. It should be noted that "South Stream" through Turkey solves several problems at once. Far from all of them lie in the economic plane, but money from this new gas partners should be added.

USA and South Stream

We have not touched yet another player who influenced the process of coordinating the now closed project. This, of course, is our favorite States. They really do not want to cede such a huge energy market in Russia. Europe "South Stream" perceived as a guaranteed solution to the problem of gas shortage. Of the other options, there is Nabucco. Only this project exists, so to speak, on paper. Prior to its implementation, the case never came. Briefly, according to this idea, Europe could receive Turkmen gas. Transit was supposed to be Turkey. South Stream competed in a sense with Nabucco. It should be noted that this project was created under the US protectorate. They urgently need to enter the European energy market in order to settle their own economic problems. The decisions of the European Commission, as you understand, were directly dictated by Washington. And the EU countries can not not submit to it. These are the rules of this supranational education. By the way, "South Stream" through Turkey cancels the need to obey European legislation. Which greatly facilitates the fate of Gazprom.

Turkish flow

Changing the route in favor of a transit country - not a member of the European Union - leads to the fact that Brussels is losing the ability to influence deliveries. Countries will now have to decide for themselves whether they want to host the South Stream. News on this subject comes in a variety. On the one hand, everyone is afraid of shouting from Brussels, on the other - gas can not be dispensed with. And the EU bureaucrats are negotiating with the US on a transatlantic partnership. If such a contract is signed, then Gazprom will survive from this zone. Europe, "South Stream" which "did not arrange", will be forced to buy liquefied gas at a price. It should be noted that the situation is aggravated by the political position of Turkey. This country has already waited for five decades, when it will be admitted to the European Union. Therefore, it will not be possible to put pressure on Erdogan. He will supply blue fuel on his own terms. And the threat of Nabucco construction now does not affect the process. After all, it is impossible to build it around Turkey. Therefore, there is a certainty that this time nothing will prevent the opening of the South Stream gas pipeline. News about construction works appeared in the press as early as 2014. The Turks gladly got down to business, offering European partners to queue up.