Russian Government Source Says South Stream Gas Pipeline Will Be Built

Excerpt from report by Russian state news agency RIA Novosti

Moscow, 6 December: Russia will not give up its plans to build the South Stream gas pipeline, even despite the possible construction of Nabucco gas pipeline that bypasses Russia, a source in the Russian government told journalists on Thursday [6 December].

“I can say with 100 per cent confidence that it (South Stream) will be built and its construction will make the Nabucco project very uncompetitive,” he said.

According to the source, despite the fact that at present the route of South Stream has not been decide upon as yet and concrete decisions regarding all participants of the project have not yet been taken, “the issue of building South Stream has been pre- decided.”

“Although there is no technical-economical feasibility study and there is no route in place, there is interest from European countries – Italy and Greece, there is a market for this gas and there are no obstacles for its construction,” the source noted. The South Stream gas pipeline will transport Russian gas to southern Europe. Gazprom and Italy’s Eni will create a joint venture for South Stream by 15 January.

It is planned to send the first supplies through the gas pipeline in 2013. [Passage omitted: background]

[ITAR-TASS news agency, Moscow, in Russian 1238 gmt 6 Dec 07 quoted the government source as commenting on the idea of construction of the Nabucco pipeline: "our attitude towards it is very sceptical and we do not see economic reasoning for it".]

Originally published by RIA Novosti news agency, Moscow, in Russian 1227 6 Dec 07.

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