EU Tells Russia: Re-negotiate South Stream
Astana. December 8. KAZINFORM - On 6 December, the European Commission confirmed that it has advised to re-negotiate the International Governmental Agreements (IGA) with Russia on the South Stream gas pipeline - "as they are all not in line with EU energy legislation," a Commission spokesperson told New Europe, the source of this news.
"We also confirm that we have sent a letter to Russian Energy Minister [Alexander] Novak to inform him that Member States will formally offer to re-negotiate the agreements. We invited Russia to engage into discussions with us and the Member States to ensure a solid legal framework. This is important to create legal certainty for investments," the spokesperson said.
"South Stream as any other pipeline project will have to fully respect EU legislation, in particular as regards unbundling, non-discriminatory third-party access, tariff regulation," the spokesperson said. "Possible exemptions requests will be treated like all other requests within the existing legislation but so far no exemption requests have been received."
Bulgaria hosted a South Stream first welding ceremony on 4 November, in the village of Rasovo in the Montana municipality of Bulgaria, near the border with Serbia. And Serbia did the same on 24 November in the village of Sajkaa, in Vojvodina.
On 3 December, Klaus-Dieter Borchardt, director of the Internal Energy Market at DG Energy at the European Commission, said EU authorities were working to find a legal solution to South Stream but it would take time. "In all openness and frankness, the South Stream link will not operate in the territory of the European Union if it's not in compliance with EU law," he said.
Borchardt participated at a discussion at the European Parliament at a conference entitled "South Stream: The Evolution of a Pipeline".
Stressing the importance of the pipeline, Gazprom Deputy Chairman Alexander Medvedev said, "South Stream is a flagship project, which will provide our European partners with new gas reserves from Russia and the possibility to export 63 billion cubic metres of gas, alongside direct investments, tax revenues and the creation of new jobs".
Medvedev reportedly said that all of South Stream gas had found buyers.
Russia's Deputy Minister of Energy Anatoly Yanovsky also participated at the conference as well as Serbia's Minister of Energy, Development and Environmental protection Zorana Mihajlovic.
Meanwhile in Moscow, Gazprom said it discussed natural gas exports to Italy during meetings with the Italian envoy to Russia. Gazprom Chairman Alexei Miller met on 3 December in Moscow with Italian Ambassador Cesare Maria Ragaglini. "Special attention was paid to the issues of Russian natural gas exports to Italy," Gazprom said in a statement. "The parties also discussed the current state of the South Stream construction."